Just a thought...
Feel free to contact me if you are still in need of a MTM rental, as I have a few properties available to rent on a MTM basis.
Although some of my questions were answered so much of it was still out of our control and it seemed like we may be in over our heads with many things open to ones interpretation. I am far too cautious of a person to live like that for 6+ months. After all this property was not enough to risk everything over.
Thank you all for your responses.
Under these circumstances, you need to be aware up front that for a tenant purchase the property that they're living in, the Maximum Loan to Value (LTV) is restricted to 85% -- exceptions include the current tenant purchasing the property when he/she has rented it for at least six months immediately predating the sales contract. A lease or other written evidence to verify occupancy is required.
In other words, should you move in and 3 months later the bank approves the short sale on terms that are agreeable to you, you wouldn't be able to finance the transaction with an FHA loan with a 3.5% down payment ... a potential deal breaker if you don't have enough funds for a 15% down payment. Since there are no guarantees as to when or if a short sale will be approved by a bank, it may not be wise to take that chance.
As well, I concur with the other agents who advise having your own buyer's agent to represent you and look after your best interests. A buyer's agent can provide you immediate notice of all new listings as they come on the market as well as price reductions ... it's much to your advantage to have this professional assistance when searching for property, finding out all pertinent information about the property, and negotiating for the best price and terms.
Kaye L. Hopkins, Realtor DRE# 01397372
Â Accredited Home-Staging Specialist [AHS]
Â Certified Negotiation Expert [CNE]
McFadden Real Estate Services
Â 2307 Fenton Parkway, #77
Â San Diego, CA 92108
Â Direct: 858-220-3110
Â email: KLHIntl@aol.com Â Â
Even though it is an inconvenience, I would rather advise you to put your things in storage and find a small month to month rental while you search for that perfect home. When you put your offer in on this one, make sure you have your contingencies run from date of "bank's" acceptance including earnest money. You may even want to give the bank a binding acceptance date to respond. You can always extend it if need be.
And least but most importantly, you should really have a contract with an agent that represents you.
I would be very happy to assist you in advice and info regarding this situation. I am not only a Realtor, I am a Property Manager.
I honestly have not read through all the responses yet, as I am responding through my phone. But you should know that we as agents are not legally allowed to only present one offer if there are other offers that came in, we are required to provide all the offers to the seller for them to pick the best option.
Also, in a short sale transaction, there are many lenders that would not accept an offer from the current residents, the most short sale transactions MUST be a "Arm Length Transaction".
I have heard from many of current residents about scams that they have read across of have been victims of.
I don't want to bore you with me a book. I am available if you would like to talk to if you have more questions.
Jennifer (619) 609-0760
Please look further - before moving in. You do not want to be "kicked out" a few months after moving in if the foreclosure date has been set.
Make sure HOA is up to date. The bank will not pay for it, you will have to pay the backdated amount.
And as mentioned: property taxes. How many lenders, and any other lien ....
Honestly, 1 week is not enough to market a property. Even if you and the seller are agreeable on the price, the bank may not.
I highly suggest you hire a Realtor to represent and protect you. You don't have to pay, the bank will be paying the agents.
I agree with Cory, you should ask yourself if this other Realtor is looking out for your best interest or someone elses. Sometimes if it sounds too good to be true then it probably is. With so many variables in this situation you should hire a Realtor to represent your best interest. I'm sure there are other great opportunities out there for you that you may not be aware of, so hiring the right Realtor could give you more options.
Feel free to contact me and I would love the opportunity to meet with you to discuss your options and how I feel you should approach this situation.
Keller Williams Realty
Wow, already the agent is not intending to market the property properly so she can get two commissions, instead of getting a possible higher offer from another agent's buyer and splitting it? And you trust her to take care of YOU? Tell her you want your own agent to represent just you and then see what she says.
One thing she didn't tell you and should have, not all short sales close! So, you might move in and be the only buyer and STILL have to move out. Nothing is certain with a short sale. If you do live there, I'd recommend getting EVERYTHING you want fixed while you're there as a tenant, including getting a termite report, because you can end up paying thousands to get termite repairs done and any lender-required repairs. Lenders will not fund a loan with certain things not done. And this goes doubly if the owners are taking your rent money and not paying the bank.
There is nothing to verify in a short sale - nothing is certain, not even the price of the property. You can ask if the current owners only have 1 loan by email, so there's a paper trail - which should be your #1 concern when dealing with this dual agent. If the bank knows you are renters, they'll know the house probably wasn't marketed at all.
And, your right, the bank would not be very happy at all if the current owners stopped paying them but pocketed your money. But, if the agent is willing to not market the property like she's supposed to, I'd imagine she'd be up for more unethical practices here. I'm surprises agents here think this is OK, just goes to show you what the real estate climate is like these days.
I can let you know if there is a Notice of Default on the property, just shoot me an email - it takes less than a minute.
Cory La Scala, REALTOR
Lic # 01443391
Please give me a call, my specialty is Chula Vista and short sales.
Hector R. Gastelum
Realty Executives Dillon
2240 Otay Lakes Rd. #306
Chula Vista, Ca 91915
Also find out if there is a Notice of Default (NOD) on the property and whether there is a Foreclosure Date set on it.
You are welcome to call me if you need more help.
Keller Williams Realty
Sounds like a great deal!
Once the owner accepts your offer it is submitted to the bank for approval of the short sale and it could take six months. The status of the listing will change from Active to Contingent and it will no longer be available for showings, although they can accept back-up offers.
It is common for the owner to move out when they short sale their home.