Home Buying in 33326>Question Details

Buyerinfl, Home Buyer in 33326

We put an offer in a short sale that's taking too long (60 days). Now we have an option to rent it until the short sales is done. Should we do?

Asked by Buyerinfl, 33326 Sat Oct 3, 2009

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8
Hello,
The process of short sale usually takes from 4 to 6 months; nobody can guarantee the positive result. You might not get the property. You have to decide by yourself.
1 vote Thank Flag Link Fri Feb 11, 2011
It really depends on your financing. FHA does not allow for a short term rental before you purchase - you have to be in the property for I believe over 6 months. I am not sure of but I am sure other loan types have some similar requirements. If something happens to the property while you are leasing and its big enough to make you walk away - there could be legal issues for all parties.
1 vote Thank Flag Link Sat Oct 3, 2009
The option is to rent the home you put an offer in on? if so, and you need a place to stay then sounds like you have a nice option. If you are not in need of renting right now and you are settled with your living arrangements, then you can just stay where you are!!
1 vote Thank Flag Link Sat Oct 3, 2009
There is no guarantee the bank will approve your offer. While most short sales do go through, you are risking having to move if your offer falls apart. You should find out a little more about the short sale first. Who is the short sale lender? Is there more than one lender involved? Have either of the lenders (if more than one involved) approved the sale? Has the bank done a BPO (bank appraisal) on the property yet? These will help give you a better idea of the likelihood of the short sale outcome to help you make an informed decision.
0 votes Thank Flag Link Tue Aug 14, 2012
That can be an excellent option for the right situation. I recently purchased a short sale myself and moved in upon making the offer. I had to get out of my last house, so this was the only way I could make a short sale work. It worked great for me. 9 months of renting and then we were able to close (yes, the short sale took a little over 9 months from offer to close). Happy ending. Not always so, but it can work. Best of luck...
0 votes Thank Flag Link Wed Jun 20, 2012
60 days is not very long to wait. If you are allowed to move in, then go ahead and move it.
0 votes Thank Flag Link Mon Jun 18, 2012
Putting in an offer on a shortsale needs to have many questions answered by the seller. examples: is the seller and agent submitted paper work to bank? w2s, hardship, tax returns, to name a few. Did seller put down 20% when he bought the home. If yes great, if no, very bad. that means PMI insurance is most likely on mortgage. This will require seller to come up with money at closing. If seller can't, no deal. How many mortgages are on home? one great, held by the bank or do they have an investor? Differance 30 days to get an answer from the bank vs. 3 to 5 months. How long has house been on market? Is it at Fair market or did seller agent list under market to start?Differance in time is significant and may not close if bank feels that it was not on market long enough. If 2 mortgages are more complicated generally and take more time. Which bank the sellers mortgages are with can be 6 months differance aswell. All these questions should have been answered prior to putting in offer in my opinion. otherwise you go into a deal in the blind. As to renting, that can be a slippery slope. You would want a written lease at minimum. Where is owner at in the foreclosure process, if they haven't kept up with payments. Do online research for court filings. Realize owner may not make any repairs to home if problems arise. I would research other options first.
0 votes Thank Flag Link Thu Apr 7, 2011
when on a short sale process takes over 90 days, you can rent the property but does not guarantee the purchase. The bank may ask more for the property
0 votes Thank Flag Link Thu Jan 27, 2011
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