Home Buying in San Francisco>Question Details

415nefer, Home Buyer in San Francisco, CA

Realistic can my husband and I get property for a short sale with less than 60percent

Asked by 415nefer, San Francisco, CA Fri Dec 14, 2012

we don’t have much to put a down payment maybe $10,000. Were looking townhouse 2 – 3 bedroom…in san Bruno, dily city CA area...a little fixer upper.

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Your question isn't clear, 60% of what? sixty percent of the price paid by the owner who is about to go into foreclosure? Yes. Sixty percent of the value in 2007? Yes. Sixty percent of the comparable market now? NO.

$10,000 is 3.5% of $285.714 so if you can qualify for an FHA loan and can find a place for that price ~ maybe dily city
0 votes Thank Flag Link Sat Dec 15, 2012
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
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3 1/2% for FHA Loans and possible Sellers Concession. Speak to a qualified & experienced Realtor® in your area!
0 votes Thank Flag Link Sat Dec 15, 2012
You can probably qualify for an FHA loan at 3.5% and be preapproved for up to $300K. That's my guess based on the data you presented.

In the San Bruno, Daly City, Colma, Pacifica, and South San Francisco area there are only two homes that are currently for sale under $300K.

I own homes in California, Hawaii, and Portugal. Let me know if you have any questions or if I can help in any way.

Good luck!
0 votes Thank Flag Link Fri Dec 14, 2012
The banks have a duty to their stock holders to get the highest sales price possible in a short sale. Before a bank approves a short sale they will have BPOs (Broker Price Opinions) done to get an idea as to the value of the property based on comparables of similiar recently sold properties. After the BPOs are reviewed the bank will either approve or disapprove the short sale.

If you are looking from San Francisco to San Jose, those are currently the hottest markets in the country and many homeowners are seeing a huge increase in values. The prices are rising so quickly due to lack of inventory and demand that we will soon see short sales to be very few.

If all you have is $10,000 you will need to either get a gift, that does not have to be repaid, or save more money.

San Francisco does have a first time buyers program that is offered through the Mayor Office of Housing but you need the closing costs plus a minimum of a 5% down payment inorder to qualify.
0 votes Thank Flag Link Fri Dec 14, 2012
It really sounds like you are asking if you can buy it with an OFFER of 60% of the LISTING PRICE:
That answer would; Probably not!
It would depend upon what the LISTING PRICE is:
I seriously doubt that the Sellers put a LISTING price that was 60% above the Market Value.
That would be equivalent to offering $300,000 for a $500,000 house, (which probably has a $600,000 loan; which is why it is a Shortsale.)
Have your Realtor do a CMA to determine the MARKET VALUE.

Don't forget that with a Townhouse or a Condo, you will have an HOA fee every month too.

Good luck and may God bless
0 votes Thank Flag Link Fri Dec 14, 2012
Do you mean less than 20%?
0 votes Thank Flag Link Fri Dec 14, 2012
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