Home Buying in East Syracuse>Question Details

Mfuller4, Home Buyer in East Syracuse, NY

What should you be wary of as a short sale buyer?

Asked by Mfuller4, East Syracuse, NY Sat Feb 2, 2013

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First do your homework and find out how much the house is worth in the condition it is in and in the condition it will be in after you've made the repairs - have a contractor meet you at the house with your agent.

You may get a short sale house at a reduced price, but most likely it will have it's fair share of problems - think 'fixer-upper'. Try to find a couple buddies that are skilled in different trades (electrical, plumbing, carpentry, etc.) give it the once over before you submit an offer - and make it Contingent on a home inspection.

In addition to making sure the home itself is sound, be certain to retain an attorney who is well versed in short sales who can protect you and does many short sales. They are not for the faint of heart and yes, they do tend to drag on for months, but a good deal can be had - the next step is foreclosure, which costs the banks much more.

Make sure your realtor is keeping track of the status and in the meantime, keep looking for other properties as your may not be the only offer the bank is considering.
0 votes Thank Flag Link Mon Dec 30, 2013
Thanks for the info
Flag Thu Jan 2, 2014
Hi Mfuller4, consult a Real Estate attorney.
0 votes Thank Flag Link Sun Feb 3, 2013
Hello,

As a buyer you will want to protect your interests. Here are a couple of my suggestions to you not knowing the specifics of the deal:

* you will want your agent to write a time deadline in the offer that you need to hear back from the bank. Banks can be very slow to respond (it varies by transaction). This will ensure you are not waiting indefinitely on an offer that may not materialize and missing other opportunities that may come up.

* Expect a counter. The bank will try to sell the property for as much as they can.

* Make sure you write the offer in a way that you do not incur any costs until the bank has approved the offer. ie, do not do a home inspection or any other activity that will cause you to spend money before the bank says yea or nea.

* The person representing the seller with the bank (could be agent or attorney) will play the most important role in getting the deal negotiated. While the bank does want to sell the property, and selling it at a loss is their best answer, they too have to answer to someone that backed the sellers loan and NO ONE likes loosing money.

Feel free to contact me privately if you need more help.

Zisis
0 votes Thank Flag Link Sun Feb 3, 2013
Hi Mfuller4!

Make sure your offer is the only one the listing agent has submitted to the lender(s). If the listing agent is one who routinely forwards all offers to their client's lender(s), you've got a problem. Once you verify that yours is the only offer that has been submitted, have your agent periodically check in with the listing agent for updates. Make sure the file is moving through the system, i.e., assignment of a negotiator to the file, bpo ordered, etc.

You can never be 100% assured that it will work out but these are just a few things to be mindful of.

Best of Luck!

Barbara Grandolfo
0 votes Thank Flag Link Sat Feb 2, 2013
I can think of a couple of things. You need a good lawyer that knows shot sales. Also when you put an offer in the Listing agent might not have received a pre-approval from the bank for the price. This will make the process take a lot longer. And this time is you are looking to move soon or quickly then you should be OK. But never count on a short sale. It might never happen.

You need a Agent that knows where the deal stand at all times and works well with the Attorney to make sure this go as smooth as possible.

Any Questions you may still have please contact me directly

Have a Great Day!
0 votes Thank Flag Link Sat Feb 2, 2013
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