Home Buying in 30319>Question Details

pdeank, Home Buyer in Atlanta, GA

does paying cash on a short sale require less paperwork plus excellent credit on the buyers part ??

Asked by pdeank, Atlanta, GA Sun Apr 14, 2013

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Darrell Hess’ answer
It will be less paper work for you when you close, but until then it will be basically the same in regards to forms needed to submit to the sellers. As far as credit goes if you are paying cash you could have the lowest credit score available. Credit will really only come into play when you try to leverage and get a loan to purchase. If you do go the cash option make sure you get an appraisal or a really epic CMA done to make sure you are not over paying on market value. Also think about checking flood zones and other pertinent information that a lender would have done for you.
0 votes Thank Flag Link Wed Apr 17, 2013
I would like to thank everyone who responded to my questions regarding quick sale cash home purchases. I did notice that several were from Ga. and atlanta area, would you say there have been
an unusual amount of short sales in that region ? the home I am looking at is not located in that state just fyi.
thanks again for all the invaluable info, especially the appraisal/ which would be the 1st to do on my list.
philip kirk
0 votes Thank Flag Link Mon Apr 15, 2013
Actually, you would do the appraisal last. no point in spending $450 if the deal is not approved by the seller. You actually do not do anything until first your offer is approved by the seller. Then you wait until the offer is approved by the Seller's Lender. then you start with inspections and appraisals.
Flag Mon Apr 15, 2013
There is so much to talk about or explain regarding the short sale process that it would not be viable to reply via this forum. If you would like all the details, I will be happy to explain it to you over a phone call. Please call me when you have at least an hour to talk as their is so much to cover regarding short sales.


Gene Caifano
Real Estate Advisor/REO & Short Sale Specialist
Chapman Hall Realty
6100 Lake Forest Drive, Suite 120
ATLANTA, GEORGIA 30328
678-362-7458 Cell
404-252-4512 Office
678-399-6469 Fax
genesellsfast@gmail.com
http://www.atlantaareaforeclosures.com
http://www.chapmanhallrealty.biz

"Referrals are the greatest compliment I can receive as a real estate agent."
0 votes Thank Flag Link Mon Apr 15, 2013
Paying cash on a short sale only eliminates the paperwork and time required to obtain a loan. The bank holding the note does not care how good your credit is. They will take their time whether you are obtaining a loan or giving them gold boulion. Like Hank said below, be sure to obtain an appraisal or at least obtain a CMA from a Realtor you trust, to give you some peace of mind that you are not over paying.

Best,

Dave Herren
Best Atlanta Properties
404-425-9454
0 votes Thank Flag Link Mon Apr 15, 2013
Paying cash on any transaction will require less paperwork or eliminate the process to satisy the underwriting requirements inherent in mortgage application.

Hence, it applies to any transaction. Short sale, traditional sale or bank-owned sale.
0 votes Thank Flag Link Mon Apr 15, 2013
When paying cash for a property, having excellent credit makes no difference. Credit is only a factor when the Buyer is obtaining a mortgage. Once you have the approval of the Seller's lender(s), you may be able to close sooner since you are not obtaining a mortgage. For a cash sale, be prepared to provide your agent with a copy of a recent bank statement to verify proof of funds.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Sun Apr 14, 2013
Only because you don't have to go through the loan process. It's still the same old slow go with the banks. The last three that I sold short sale have taken 6 months to close. 2 were cash and one was financed.
0 votes Thank Flag Link Sun Apr 14, 2013
The only impact on the deal will be after any approval of the short. You paying cash has nothing to do with the decision of the lender whether or not to accept the short sale. It is assumed that a buyer will have the ability to close so a cash buyer is similar to an approved buyer in that vein.

Cash buys tend to be quicker from the stand point of avoiding the mortgage process. Do not however, skip the appraisal - you need an impartial opinion of value if for nothing else than peace of mind.

Hank
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Sun Apr 14, 2013
No credit check with cash AND no mortgage process which eleminates time about 2 weeks.


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0 votes Thank Flag Link Sun Apr 14, 2013
No credit requirements since you are paying cash. You will have less paperwork, as most of the buyers documents are related to getting a loan - no loan for you = less paperwork. There will be no change for the bank/seller side on paperwork.

Your offer may be considered in favor however if you do not need to qualify for a loan. You would be able to close quickly once (if) the short sale is approved by the bank in question.
Web Reference: http://www.Buy-Atlanta.com
0 votes Thank Flag Link Sun Apr 14, 2013
Your credit does not come into play if you are paying cash but it does not speed up a short sale very much. It will still take the same amount of time to get the paperwork processed. The only "time" benefit is once the bank approves the short sale, you can close in less than the typical 30 days a lender would need.
0 votes Thank Flag Link Sun Apr 14, 2013
Not really, proof funds would be needed instead of loan approval. Most of the paperwork is on the seller side.


Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
CRS, CRB, ABR, MSRE, CDPE, CAIS, e-PRO, ESQ
2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
bruce@locationlocationlocation.com
http://www.LocationLocationLocation.com
The LinkedIn REALTOR
http://www.linkedin.com/in/bruceailion
0 votes Thank Flag Link Sun Apr 14, 2013
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