Home Buying in Sevierville>Question Details

Kenny,  in 37876

Does anyone have experience buying a house through a short sale? I am a little nieve about this. Please help!

Asked by Kenny, 37876 Wed Mar 5, 2008

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FORECLOSURE REALITY CHECK.... The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.
1 vote Thank Flag Link Wed Mar 12, 2008
We brought a forclosed short sale house from New Zealand without seeing the house first.
Fortunately we had a very honest agent who informed us of all the pitfalls and benifits of buying this house. We ended up with a great house but we had to spend 30k replacing wiring, lights, floorboards, windows, kitchen.
Generally If they have sat on the market for a long time its usually for a good reason eg, electrical wiring and plumbing has been stripped from house, mould problems, leaking roofs, broken windows etc.
Would definately recommend getting someone to inspect house before you buy it.
our agent was andrew at the housestore, http://www.housestoretn.com/
He was awesome.
0 votes Thank Flag Link Fri Apr 12, 2013
Patience Patience Patience!! You are at the mercy of the Bank ... don't do it if you are under a time deadline!!
0 votes Thank Flag Link Wed Mar 12, 2008
I recommend that you first get a Home Inspection to protect your interest. If you need a good home Inspector call 423-736-0333
0 votes Thank Flag Link Wed Mar 12, 2008
I have bought and sold several. First of all you need to understand you are actually negotiating with two parties. The bank and the owner of the home. The bank will approve the purchase price and closing costs to be paid and the seller basically conveys title to the home. Thats the short of it. No pun intended. Several items you need to be prepared for: 1. Most banks will not allow or make repairs. 2. They can be very stingy on the closing costs paid. 3. The process can take upwards of 90 days to complete. 4. Understand the rules of the contract can change and sometimes do, keep in mind the bank is only allowing the true owner which is the seller to sell for an amount less than owed on the property. So they are not happy about the transaction but most know the costs associated with full foreclosure and that is why they are allowing this process to take place. Some advice I would give if you dont have a experienced real estate agent or attorney involved, get one. Also have the home inspected, since the sellers are completing a short sale chances are they have not had money for repairs, nor funds for termite service etc. Although the bank will usually not pay for repairs, I would much rather be out a few hundred dollars for a home and termite inspection then buy something that will fall down around you. IF you are obtaining financing be sure to let your mortgage company know and ask for an extended lock on your loan of at least 90 days, also ask them the process for extending the lock. IT IS NOT UNCOMMON to see delays with short sales. I hope this helps.
0 votes Thank Flag Link Wed Mar 5, 2008
make sure the seller has completed all the required documents to be sent in with the offer ,if all those are not completed the offer sits in a file with no yes or no answer it goes no where
Web Reference: http://margaretrodgers.com
0 votes Thank Flag Link Wed Mar 5, 2008
In a short sale you submit the offer to a company rather than an individual. They usually have additional forms for you to fill out. It's a waiting game waiting on an answer. Normally they won't fix anything & everything is "as is". Let me know if I can help you.
0 votes Thank Flag Link Wed Mar 5, 2008
We've handled several short sales. They can be trying but having the proper technique and experience can speed things along greatly. If you need further help please don't hesitate to call 865-436-2121.
0 votes Thank Flag Link Wed Mar 5, 2008
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