Home Buying in 11789>Question Details

Barbara Sand…, Home Seller in 18324

Other offers on short sale which we bid on. Should we inspect the house to be sure if it is worth our time?

Asked by Barbara Sandberg, 18324 Sat Oct 18, 2008

How long could it take the bank to answer on our bid? There are two other offers and not one is full price. Should we have the house inspected to be sure we can do any work necessary or wait to hear from the bank? Only saw this house once since it is 150 miles away.

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Pat Vredevoogd’s answer
Absolutely, You can't afford not to inspect the home unless you have someone close by that can do it for you. There are inspection services that you could hire if you are serious about the purchase - but don't go into anything (no matter how good a deal it seems) without knowing that you can do any work and it won't send you spinning into a bad situation.
Web Reference: http://www.patsplace.com
0 votes Thank Flag Link Tue Oct 21, 2008
Your Purchase and Sale Agreement should include an inspection contingency, which will allow you a set time period (likely 10 days) to complete inspections AFTER the bank has accepted your offer. Then if the inspections are not satisfactory, meaning you are willing to pay for the repairs after closing, then you will go ahead with the purchase of the property. Banks rarely if ever pay for any repairs for a short sale property. I would not pay for a professional inspection prior to learning that the bank has accepted your offer, however.

Contact your Realtor for recommendations for professional licensed and insured inspectors in the area where the home is located, though, so that you can get quotes and be ready to go if you get the call that the bank has accepted your offer.

Of course, you will complete your financing application process also and so forth toward a successful closing.

In the meantime, you may want to continue looking at homes. If you find a home you like better, you could withdraw your original offer, or at least have other good replacements in mind should yours not be the successful offer. Good luck to you.
0 votes Thank Flag Link Tue Oct 21, 2008
In Westchester County, our short sales require the buyers to sign a contract of sale, go for a mortgage approval including an appraisal fee. It does take the bank an average of 3 months to make a decision. We do not make the contracts subject to an engineering inspection or mortgage approval. Once the bank says yes you may have 2-3 weeks to close on the deal. This may be a normal time frame outside the tri-state area, but our closing usually take 90 days. My answer to you would be each banks procedures for short sales are different. You must speak to your agent and request the terms the bank will accept. The offer you make will be up to you.

Anthony Marciano, Broker
http://www.Century21Marciano.com
0 votes Thank Flag Link Tue Oct 21, 2008
If you are purchasing a short sale, you need to be the right type of buyer. If you sold your home and need to move within a certain period of time, a short sale is not for you. If you are in a position, such as a month to month lease, or living with the parents, you might do well bidding on a short sale.

Every bank is different. The listing agent and sellers are dealing with the bank's loss and mitigation department. They are swamped. When I show short sale properties, I tell my buyers to put in offers on everything they like. Sometimes you hear right away that an offer will be accepted, but most of the time you wait. If another offer has better terms (more cash down), the bank may chose that over yours. When a bank does chose an offer, they want to close within 30 days. They will not drop that offer once they have started for a higher offer like a seller might do.

If you have the home inspected now, you will be paying $400 - $500 for an inspection on a home that you may not get. It would be more prudent to wait until the bank has accepted your offer.
0 votes Thank Flag Link Sat Oct 18, 2008
Barbara,

As the others said, short sales take time. I would not do an inspection until you have an accepted offer. Once you have the accepted offer, schedule the inspection asap. You will then be able to determine if the house needs too much work to move forward on. If it does, you can withdraw your offer. DO NOT sign a contract to purchase until you have done your inspection. A purchase offer is non binding a contract is binding.

FYI, I have had banks choose not accept the short sale and move for foreclosure instead.
0 votes Thank Flag Link Sat Oct 18, 2008
I would get my lawyer involved in this deal real quick, short sale , long sale... who cares. Get a handle on the deal before it goes away or you get hurt. In these days and ages anything can happen, for better or worse but protect numero uno first and foremost...right? I'm not saying anything or implying anything is wrong but stay on top of this starting today.
0 votes Thank Flag Link Sat Oct 18, 2008
Barbara,

Typically, during the sale process homes are inspected after there is a signed contract in place. Short sales can take a long time 4-6 months are not unusual. Our recommendation is to make sure your agent checks with the bank on a regular basis(2-3 times weekly) tracking your contract.

Good luck,
0 votes Thank Flag Link Sat Oct 18, 2008
On a short sale it could take the bank 3 to 6 months to approve a short sale, a short sale purchase and sales can not be contingent upon anything or the bank will not accept it, you should do all inspections prior to making a bid. you really need to ask the listing agent how far along they are on the short sale. has teh bank approved the seller financially and has teh bank sent an appraiser to the home, those alone are usually 3 months worth of time alone. that will at least guide you along. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Oct 18, 2008
I would wait to hear from the bank.
0 votes Thank Flag Link Sat Oct 18, 2008
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