Jason, Home Buyer in San Diego, CA

I have yet to submit an offer on a short sale or foreclosure home because someone with money or a developer submits an all cash offer. Do you have?

Asked by Jason, San Diego, CA Thu Mar 22, 2012

any strategy or pre-short sale or foreclosure list that someone in my situation can utilize to circumvent or help my chances? I have excellent credit (817 score) and no debt.

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Answers

9
Cory La Scala’s answer
Hi Jason,

Also, be sure your lender routinely closes your type of loan in 30 days. If you're buying with an FHA or VA loan, many lenders can, and a bank will wait two weeks for more money in many cases. More tips: Submit your funds verification with your offer so the bank has no question that you have the money to close (ALL the bank wants is to close the deal). Submit your FICO score from your credit report (white out your SSN). Submit your FULL-DOC pre-approval from the lender you're going to use along with the seller's required lender if they have one. If there are any issues at all regarding the condition of the property that may be a problem with your loan, address it in the offer so the seller/bank knows you have a plan and will be able to close.

Now, get in there, and write your offer!

Cory
0 votes Thank Flag Link Fri Mar 23, 2012
Why are you focusing on short sales and foreclosures? In many, many cases they are not the best deals on the market. Consider the fact that you have to wait for the bank to respond to your offer, which could be 4 or 4 months and then they tell you what they will or will not pay. On a foreclosure many banks will not pay for termite, pay for a home warranty and the do not pay for repairs, so a physical inspection is for your information only.
Although some Realtors who have REO accounts know that a property will become available they don't accept the first offer - in fact they usually take offers for a 5 days before they select. There are other ways to win the deal and you need to know how to write a clean offer and what the bank is looking for - this will benefit you more.
1 vote Thank Flag Link Thu Mar 22, 2012
Agree with you Janet. Buyers are chasing short sales and reo. But it is OFTEN not the best deal! Waiting is very stressful. I listed a short sale today and asked about 'all cash' only because we are too close to an auction. But if i have more time, any offer is welcomed.
Flag Thu Mar 22, 2012
Good advice Janet!
Flag Thu Mar 22, 2012
Jason,

Prior to making offers you should be reviewing the financing restrictions on the property to assure that the seller will even consider your type of financing. (Some properties are cash only because their are problems that lenders will not lend on).

Additionally, have your agent review all the terms of the offers you have been submitting to make sure they are the strongest possible for each sale type and particular situation. If the properties are receiving multiple offers you are going to need to be as competitive as possible.

The bottom line is that the seller/bank is going to want the most "solid" offer with the highest net that has the best possibility of closing in the least amount of time. Be patient and ready to act quickly when new ones come on the market.

Kind Regards,

Marcie Sands, REALTOR
Rancho Bernardo
Simply The Best Real Estate Co., Inc.
760-644-1562
0 votes Thank Flag Link Fri Mar 23, 2012
Hi Jason,
Email or Call me discuss and we can give you some successful options and represent U also.
U can choose the best strategy tyo proceed if U detail your scenario in realtionship to purchasing realty in this market place which can be rather complex without the assistance of a seasoned professional buyers agent with almost 4 decades of short sale and foreclosure experience. Your iniital instincts are reasonable reactions as generally speaking cash is king unless a cash low ball offer, then a closer to over full price loan offer works well!! 760 622 6855 maureen@landangel.com
Web Reference: http://www.coastal.biz
0 votes Thank Flag Link Fri Mar 23, 2012
I work with short sales/Los Angeles Area/. Each case is different.
My understanding of cash request: agents want to make sure they can close the deal. Short sales are often the most difficult and time consuming transactions. We suggest 'all cash' because cash buyers usually have very short escrow : 4-14 days, but my experience shows that if the offer is strong , clean and solid it often go through. If i represent buyer, i'd suggest to submit offer anyway( even it is FHA with 3.5%).
My advice: work with a good agent who have experience with short sales.
If you want call me for a no obligation phone call if you need suggestion or more information about short sale process/phone in my profile/
Warm regards,
II.
0 votes Thank Flag Link Thu Mar 22, 2012
Jason,
I have represented numerous Buyers purchasing REO'S and Short Sales. Some have been cash deals if the bank makes mandatory because of cracked slab or severe poor condition of property. Then in other cases Jason they have use conventional financing. The bottom line for banks with my experience is the profit margin. They will rather collect offers and instruct Buyers to make their highest and best offer and many timed accept a higher conventional offer as long as Buyer has great credit & Proof of Funds.

You will have better odds with a regular short-sale or traditional sale.

I've had a few short-sales take upto a year for bank approval, so you need to take that in consideration, the waiting game.

Traditional sales are typically easier to negotiate as you're in the driver seat, compared to REOS/Short-Sales.

There's a myth that the best deals are REOS as many REO agents have their own Buyers in back pocket and double end the deal representing both Buyer&Seller.

The last point that I want to share with you is that it also depends on your price range and area you're targeting to purchase. Many moving parts in this acquisition process. You need to work with a season agent like myself.

I also have access to
0 votes Thank Flag Link Thu Mar 22, 2012
I also have access to "Off Market " properties not on the MLS open market in Ca.
Flag Thu Mar 22, 2012
Apparently I wrote to much and got cutt off.
Jason feel free to call me to further discuss.

David R. Indermill
The Sterling Company
DRE#01232827
Certified Distressed Property Expert
Trulia Recommended
Cell: 858-414-5478
Email: david@sandiegohomestore.com
Flag Thu Mar 22, 2012
Jason,
Have your agent (me) educate you on values in the area and step up to the plate and write an aggrssive offer at or just above market value. Choose an agent with short sale experience (me) and listen to his advice. Short sales are wonderful opportunities for anyone as long as they have the proper guidance and an agent (me) who knows how to negotiate a short sale to your advantage. Let's talk!
Steven Campbell
http://www.sellsandiegohomes.com
619-972-1552
steven@sellsandiegohomes.com
0 votes Thank Flag Link Thu Mar 22, 2012
Jason
Most investors or developers are looking to get the home at a below market price. If you make an offer that is close to the market value then the lender will look at your offer favorably. if you are asking the seller to pay some of your closing costs it also makes the offer weaker.
That does not mean that you should not ask for some concessions from the seller but the entire offer has to be made attractive. Your agent should be coaching you on how to write the best offer. This is a competitive market and many people are looking for homes to buy.
If you do not have an agent who you are working with I would be glad to represent you/

I am never too busy for your referrals

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Thu Mar 22, 2012
Hi Jason,
Are you working with an agent? They should be able to guide you and represent you. What kind of financing are you looking at? Convetional, FHA or VA? Feel free to call me directly if you are not already working with someone- I would be happy to assist you!

Thanks!
Sinead McAllister
Broker
McAllister Homes Real Estate & Property Management
858-205-5215
brokermcallister@ctt.com
0 votes Thank Flag Link Thu Mar 22, 2012
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