Scott is right on target with a 203 renovation loan. In our area they take at least 60 days and no short sale lender, if and when approved, is going to give 60 days. They are typically 20 days for cash and 30 for loans from the time of approval to closing. Getting approval is the longggggggggggggg wait.
That being said when I have a Buyer interested in short sales we have a consultation first to make sure they understand what is involved and are they prepared and willing to go through the process. I have worked both sides, listing and selling, and yes they are anything but short. My shortest was 60 days, my longest was 14 months and I have even had them over a year where the second lender said no and forced the home into foreclosure.
Some considerations as a Buyer:
1. Do you have a time limit where you need to be moved? If so short sales are not a good choice, there is no time guarantee. Lenders want a minimum commitment of 120 days with escrow for your offer to be considered serious. This is time you are committed to this property and not making offers on others.
2, What type of loan are you getting. I am not saying it is impossible, but rare that FHA get approved. Remember the lender is looking to see which way they lose less: short sale or foreclosure. If repairs are needed the seller can't afford them and the bank won't pay, and FHA requires certain repairs before closing if problems exist. If you are looking for closing cost assistance this reduces your chances even more.
3. Are you expecting huge discounts on price......no more. Lenders are looking for closer and closer to market value. Even if you offer list price, if list price was much lower than market value ( which is often done to get activity and the first offer for the lender to reject, but begin the process) the lender will often counter near market value or just reject it.
4. Short Sales, like REOs (bank owned properties) may be in need of a lot of repairs- remember the owner could not afford the payments- thus they may have a lot of deferred maintenance issues. You need to consider this when viewing the property to decide if it is really a good value.
If you have no time restrictions, conventional financing (or a 90/95 no MI) and are comfortable knowing no repairs will be made, make short sales part of your mix, but don't limit your search to these. The best value may be an estate sale or just someone who has lived in their home a long time and needs to move or downsize. Inventory is tight, the market is turning and you may miss out waiting for a short sale.
I feel an informed client makes the best decisions regarding their real estate needs. Let me know if I can be of assistance.
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
You have received excellent guidance from two straght shooters. They have told you 'like it is!"
Your recent expereince, as you have described, suggests you are playing a weak and likely losing hand. If you keep doing what you are doing, NOTHING will change.
Real estate professionals are not hobbist. we are business owners. We can not stay in busienss if their is NO PROSPECT of closing a transaction. As two have suggested, your criteria, as you have described, can not succeed.
Another issue is the time required to acheive success and the associated compensation. Hobbist will PAY to play in their hobby. Professionals have a differant plan, a business plan. They want to make money so they can stay in business to help the next home buyer in additon to paying their mortgage and gas to get to the homes they show you.
In our society, it seems impolite to say, "There is no way for a profitable outcome working with these prarameterts." So the alternative is to simply fade away.
Changing real estate agents WILL NOT change the outcome. Changing your starategy and situation will. When you chat with the NEXT local professional. be prepared to hear their advise AND FOLLOW THEIR GUIDANCE. If you still select a short sale, you were not listening to your agent.
It is possible you are unqualified to purchase a home. It is possible the home for which you are qualifeed does not exist. For instance that 3/2/2, 2007,block contructed, pool home in Highland Woods does not exsit for $150,000. It matters not how much time you have, short sale, reo, auction, this home does not exist for the first time buyer.
This is a brutal as it gets. Ask your next agent to be transparent, brutally honest, so the correct expectaions can be established, and/or, the pathway to success can be determined. But doing the same thing, repeating the same process will not alter the results.
So, be prepared to impose changes on your strategy and goals.
Best of success to you
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
You have heard from several very expereinced LOCAL agents today.
Now it's time for you to play your cards.
Describe the home are you looking for? (Size, location)
What is your price point?
What is an example of a 'no go' for you? (past settlement issues, avacodo tubs, 2 story)
How much cash (downpayment) do you have?
When is your current lease ending?
What bank/lender are you working with?
What amount have you been approved to borrow?
Are there others who must be involved in making this decision?
Let's get to where the rubber meets the road, that is, what is possible with your situation.
It is completely possible a rabbit can be pulled out of the hat. Be aware however, that you only get one chance and the rabblt goes into the hole. If an agent responds with a solution to your situation, you need to respond immediately. Let's get some serious resources on alert. From Seminole to Palm Harbor you have the atention of several very accomplished real estate professionals. Let us know what you need. Then the community can respond accordingly with solutions or suggestions.
That is how you get things done. Make clear what you will do so others can know what they must do.
No one wants to get caught chasing the vapors of yesterday's reality. I am very confident that what will result is a solid path to finding you a home today or when you are truly qualified to compete in an environment that is not composed primarily of vapors which are the first cousin of wishful thinking. If you are serious, there is a key to the door of your home wating. But it begins with making serious decisons and taking the required actions.
Best of success to you.
As Annette Lawrence put it, experienced Agents and Brokers have to work around what we call profit. That is what pays the bills. While many many people think we make it rich doing what we do, the reality of it is that the time an agent would spend with a client who has unattainable goals in the home he or she wants with regards to their ability to buy, that is their purchase power, it does not pay for that agent to spend more time than necessary to determine their profit structure.
Many times the client presents unyielding goals. And, when we professionals attempt to explain what is available for the given goals, nothing seems to work. Unless the client is willing to make adjustments in their goals, the agent is obligated to him/herself to move on. The cost is too high.
I am a certified FHA 203-K Specialist, but very rarely work in that field. I am a Short Sale Specialist, But very rarely work in that field. I am on several lenders list for REO Listings, but very rarely work that field. Why? Because the cost/expense to do so is too high. And with the market being what it is, there are, in many cases, better deals out there.
I often tell those with unattainable goals that if you want the perfect home, build it... but you still won't have it.
We do our best with what information a client give us. We take every client at face value that they are being honest with us. We don't charge for our services, yet we spend countless hours, gallons of gas, wear and tear on our vehicles, pay enormous amounts for licensing and association fees, insurance, and education, then lay our licenses on the line everyday for the possibility of making a profit.
If you had 2 agents who abandoned you, and you were perfectly straight up with them, and you were willing to listen to them, and did all you could to facilitate the search for your new home so they could be of help and protect your interests, all the while working within a reasonable set of goals, then shame on them. If not, then shame on you.
So I say, maybe the answers would not have been different, because everyone might have figured out that your goals were unattainable. My suggestion, when you are really ready to purchase your new home, be willing to punt.... make adjustments, my suspicion is that it wonâ€™t be your last home... and you know what... youâ€™ll find something.
Short Sales not only take time but often by the time they are approved the sale price may be much higher than what the seller accepted. The Short Sale process cannot even begin until the first offer is accepted by the seller and presented to the bank. Because the seller cannot even begin the process until they get that first offer they can ask a lower than market value price. But the bank will want fair market value. The bank reviews the offer and then orders a Broker's Price Opinion to put a "true value" on the property. This Opinion can be done by anyone and often it is computed based on statistics by someone that doesn't even live in the area. Then the bank comes in with their own sale price..
The bank also has to consider whether the seller is qualified for a short sale. Some people have tried to sell their house on a short sale only to find that they had too many assets to qualify, or the property was actually a second home and it didn't qualify.
None of this is discovered before the first contract is signed and sent to the bank.
So, yes it is time consuming. Yes, there are some agents that won't work with short sales but usually it is because it is a difficult transaction to understand and work to a fruitful end. We often say that it is the third contract that goes to closing in a short sale because of the time, price changes and problems with the banks. However, this is all much better than it was a few years ago.
I now have a question. Is the only house you have found that meets your needs this one that is a short sale? If you buy a house without these problems you may qualify for an FHA loan which has some advantages.
If it is, please look for a realtor that has short sale experience. Google "realtor with short sale exp in St Petersburg and you may just find a few. Good luck.
Best of wishes to you.
Helping people make smart real estate decisions since 1980.
475 Central Ave #201
St. Petersburg, FL 33701
I could not have answered your question any better than Pam Cohn. In addition to her great answer, she is in your area and is someone who could help you personally, or put you in touch with someone who will. Good luck.
Jamason Realty Group
Smith & Associates Real Estate