Home Buying in 11235>Question Details

Aldore, Other/Just Looking in 11235

Short Sale

Asked by Aldore, 11235 Wed Jul 8, 2009

I'm looking at apt. which is according to RE agent is a Short Sale. According to public records property has a Lis Pending, so it is possible its a short sale. Price paid for apt . 480K. Being offered @550K. Is it really a Short Sale?

Help the community by answering this question:

Answers

3
BEST ANSWER
It certainly may be. What the price paid was and what loans / mortgages may be out currently against the property (used as collateral) may be very different prices. The lis pendens is notice to the world that there is an action proceeding that affects title to the property. It's an alert - and good for you that you took the initiative to do further research.
Remember how people were ambitiously taking out home equity loans? That may be the situation here. I STRONGLY recommend enlisting the services of an experienced real estate broker and real estate attorney to assist you in asking the necessary questions so you know what you are getting involved with. Many short sales are already in bankruptcy so proceed with caution and with knowledge.
(I have more information on the subject at my law website if you are interested.)
Good luck!
Web Reference: http://www.mpetersesq.com
1 vote Thank Flag Link Wed Jul 8, 2009
Good Afternoon Aldore,

I cannot answer about that specific property, but I can offer you some useful guidelines about Short Sales in general. I hope this will help you.

A short sale is a different kind of transaction than the normal real estate purchase. You are essentially going to wait while the Seller negotiates with their Lender(s) for approval to sell you the house at a price lower than what is owed to the Lender(s). This process can be lengthy, even stretching out to many months before you have a final answer.

You'll need two things during that time:

1. Patience. While you've submitted all your documents to your Lender for your mortgage approval, and you keep your documents current and updated, you'll grow frustrated with the lack of any communication from the Seller about the status of the short sale. This is common, both the poor communication and the Buyer's frustration. Prepare for it.

2. Maintain your credit scores. Be sure not to make any dramatic changes to your credit report that could affect your credit scores. Pay all bills on time. Don't CLOSE any accounts. Don't open any new accounts. Don't run up your outstanding balances to max your revolving debt.

Once the short sale is approved, you may find the price you offered is not acceptable to the Seller's Lender. They may come back and counter-offer your price, so you will have to reconsider at that time if you wish to pay more than your original offered price.

The three rules of real estate: Location, Location, Location.
The three rules of short sales: Patience, Patience, Patience.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Jun 20, 2012
It depends on the Lis Pendens and what it is for and who filed it. There is also the possibility of a second mortgage that you did not find that would make the full debt over $550K. Also if the seller has missed payments there could be late fees, attorney fees and interest that has accrued against the debt owed to the lender that could contribute to it being a Short Sale. The full scope of the default may not all be a matter of public record depending on your state.
0 votes Thank Flag Link Wed Jul 8, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer