Home Buying in Corona>Question Details

Tracy Webb, Home Buyer in Corona, CA

It seems like the more I read about short sales, the less they seem to be a viable option.

Asked by Tracy Webb, Corona, CA Sat Aug 23, 2008

Should I waste my time looking at them? What about foreclosures? I am a first time homebuyer looking in the Corona area and every other listing (or more) is a short sale or foreclosure! Both of those options seem scary to me. Any advice? Thanks

Help the community by answering this question:


Hi Tracy:

As the other realtors have explained, it really has to do with time and the agent by your side. If the agent by your side is an experienced short sale agent they can explain the process and the likely hood of the success of the sale purchase is greatly increased as long as you have time to wait for the transaction to be completed. As in all purchases you want to make sure you are pre approved, have your deposit and proof of ability to purchase in hand before you make an offer. The more qualified you are the better chances you have on any type of purchase. The negative to a short sale is that you could get your hopes up and go through the whole process only to find out that the bank will not go forward, but if you have an experienced short sale agent your chances of it going through are much better.

Purchasing an REO is a much more secure position, because if your offer is accepted the likely hood of you being able to complete the purchase is very high. Again the key is an experienced agent to guide you through that process. The REO properties are sold as is, so as stated by the other agents making sure you have a good property inspector is imperative. The better your pre approval is in order, the better chance you have of being accepted. Remember that most (not all) REO’s are priced right so having your agent explain what the value is and how that value was determined is also important so that you make an offer that has the opportunity of being accepted.

Weather you are looking at Short Sales, REO’s or regular sale property the key is having an experienced Realtor by your side. One that will listen to your needs and explain the purchasing process to you and guide you through each faze. I have helped clients to purchase Short Sales and while waiting for the bank to give us an approval they have changed their mind and I helped them purchase a different property. I have also helped client to get and accepted offer on Short Sales and they completed the transaction to the end. I have also helped clients to win the bid for REO's and regular sale properties.

I would love to help you with your purchase, if you would like more information give me a call.

Good Luck
Diana Margala 909-945-5763
Web Reference: http://www.DianaM.com
0 votes Thank Flag Link Sun Aug 24, 2008
The site below may answer some of your questions about short sales. An experienced short salwe aget is the key. Ask for references and talk to the sellers that used them. The experience should be RECENT.
0 votes Thank Flag Link Sat Aug 23, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
Hi Tracy,

What Joan says is correct - as long as the agents involved, especially the one handling the seller) know the drill your odds of a successful outcome rise dramatically. You also need to make sure that you have the agent you choose to work with check to make sure that a property being offered for sale in a Short Sale looks like a doable deal at the price you are willing to pay (and that the market supports).

The upside to purchasing a home that is in distress as a Short Sale is the fact that the owner of the home is still bound by all the rules of disclosure, so they have to tell you about any conditions that might affect the property that they are aware of. Also, while these seller's are understandably upset about not being able to keep their home, they might not be as destructive to the home. And, you may be able to get a good deal on the home.

When you purchase a home that has already been bought back by the bank and is now an REO (Real Estate Owned) the home will not have the same level of disclosure, but as long as you use a well qualified, experienced home inspector things should be fine.

If you are interested in sitting down and discussing your options and seeing what is available that will work for your finances as well as your family, feel free to give me a call. I am very good at helping my clients successfully navigate the purchasing waters. And with a good agent on your side, there is nothing to fear and everything to gain!

Take care and have a wonderful day!

Tisza Major-Posner, Realtor, IVPG Realty (909) 837-8922 Tisza@HomesByTisza.com
Web Reference: http://Route66Living.com
0 votes Thank Flag Link Sat Aug 23, 2008
I understand your concern about short sales, however, if the listing agent has done them before, there is a good chance they will get approved. The key is making sure the listing agent knows how to do a short sale to begin with. I have done many short sales and they have been approved. Of course, they take a lot longer to do than a regular sale. But, if you can hang in there, you have a great chance of getting a great bargain on a home. They are sold short of what is owed to the bank.

The downside is you can wait and the bank can say no. So, if you have time, it may not bother you to wait. If you do not, then, I would highly suggest looking at bank REO's or regular sales. Make sure you get an agent that knows what they are doing with the short sales like I mentioned before if you decide to go that route. Most sales out there are short sales right now, but there are a lot of bank owned properties as well. Unfortunately, with the bank owned properties they typically price the homes under market causing many people to bid on the properties. If you go that route, I would highly suggest making an offer over what the bank is asking if you truly want the house. It will go to the highest bidder.

Good luck! And, if you have any further questions that I can be of any help, please email me at calljoan4homes@aol.com

Good luck!

Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
0 votes Thank Flag Link Sat Aug 23, 2008
Only 1 out of 10 short sales actually close. If you do choose to explore a short sale, ask how far along they are in their process. you should ask if the bank has approved the seller financially to do a short sale and then if the bpo and appraisal has been completed authorizing a price that they will accept. A short sale without these can take 3-6 month with no guarantee it will work. Your better choice is to look at bankl owned homes through your local brokers. There are soem things you should know and do. Be preapproved for a mortgage, be ready to close within 300 days from acceptance, know you are buying as is, have your inspoections done before putting in an offer to guage you price, do not ask for the bank to fix anything, they wont and your offer will be rejected. Make sure your deposit is at least 1% of the sales price. Goo dluck with your search Tracy.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Aug 23, 2008
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