Home Buying in Albany>Question Details

Doodles, Home Buyer in Albany, OR

what are the real dangers of purchasing a 'short sale' home?

Asked by Doodles, Albany, OR Sun Jun 14, 2009

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5
Thesa Chambers’ answer
The biggest dangers are easily avoided by using an agent that knows the process. You need to be sure you have a clean title - a couple of things that buyers might feel are dangers are;

1. The seller ends up modifying their loan and you the buyer are now trying to buy a home that is no longer on the market.

2. Everything is up to the bank... although the seller still has possession because everything depends on the bank saying yes - you are at the mercy and time line of the bank.

3. Even if the bank says yes but the seller can not handle the circumstances of the accepting the seller can say no.

4. YOU must have patience - a short sale no matter how well prepared everyone is can take a long time...they can also move quickly
0 votes Thank Flag Link Sun Jun 14, 2009
There's no real "dangers." It's still like purchasing any other home from a seller. In a short sale, the seller still has to agree to the deal, but the bank makes the final decision. You still have your regular home inspection contingency to make sure you're willing to move forward. The only difference with a short sale is it can take an extended period of time to hear back from the bank. So know this going in.

Noah Seidenberg
http://www.noahseidenberg.com
0 votes Thank Flag Link Wed Jan 5, 2011
Like the everyone else has said it take a months to get a response from the bank and then to find out that bank won't accept the offer or in the mean while the house goes into foreclosed and also you could be losing out on other great properties. But it could all work out and you end up with a great house at a great price
0 votes Thank Flag Link Wed Jan 5, 2011
You may have to wait several months for the deal to close. It can take up to 8 months. Anytime during the process the bank can accept another offer. During the process, several homes you like may have come available. After the time period for a short sales runs out, the bank takes possession at which time it's relisted - usually at a lower price.
0 votes Thank Flag Link Sat Aug 1, 2009
Your most likely better off going after bank owned homes, some need no repairs and can be gotten at a real deal, the bank does not want them and are discounting even the ones in good shape. With these your agents can give you the details on how best follow that path. Good luck.

H. Rawie, Appraiser
0 votes Thank Flag Link Mon Jun 15, 2009
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