As for the short pay, do you understand what this means? It is a home that the Sellers owe more than the homes is worth. Often the home has more than one lender that must be negotiated with. This can work sometimes but has a low success rate by percentage. The pool of buyers for short pays is less because it is not practical for someone who had property to sell to purchase a short sale property so, the Seller can not work with buyers who have a contingency. Another problem is that sometimes the home sale isnt practical for the Lenders. The first mortgage holder may not want to negotiate their debt at all and the second my want to get some money for their loan. So, if the second and first dont reach an agreement, that can stop the process. Also, if thebank is working off unrealistic appraised values, the buyer may be asked to pay more for the home than it is worth or may not represent enough savings that the buyer wants the hassle factor. If the numbers dont work out, sometimes it makes more sense for the first mortgage holder to let the property go to foreclosure and then just sell it as an REO, which I think is probably more likely that this property you are interested in will be sold as an REO sometime after you become a ready buyer. Keep in mind too, that since the home seller in distress has no financial interest left in the property that they dont care what price the Realtor lists the home for. So, the Realtor may list the home for a very low price to entice buyers to write an offer. This gives the Realtor something to bring the lenders to see if they will accept. Most of the time, the banks will come back with a higher number and there may be a little negotiating, there may not. So, dont let the advertised price fool you. The highest offer still does not always get to take home....the home. When you are ready to purchase, you should look at everything in your price range, short sales, REO's, and regular sales. To read more about foreclosures check out RealtyTrac. I am the only local agent for Simi and Moorpark for RealtyTrac - They are the nations largest foreclosure web site.
Don't let that stop you! I have sold property before that was released from showing or cancelled. Most lenders do not negotiate short sales until they have an offer on the table. What this may have meant is that the seller is re-negotiating their loan to see if they can keep the house. If you want to make a run at writing an offer on it anyway, let me know. There is no harm in my contacting the listing agent to see what the true story is.
I use a daily monitoring service where I can pull my reports once very 24 hours. FYI for others reading, a consumer pull otherwise known as a soft pull has absolutely no impact on your score.
It does not take 60 days for payments to show on your report. It can happen in as soon as a week. It just depends when your CC company reports and when you made the payment. It's all about the cycle. For example, let's say your CC company reports 10 days from today and you made the payment today online. In 10 days the new balance will reflect and your ratio will adjust which should increase your score.
The magic number is 30% below your credit limit. There is no score boost below that unless you PIF. I'd advise you to find a new lender if that is their understanding about credit reporting, however the industry as a whole has pretty much a basic understnding of credit, credit reporting and credit scoring. Yeah they see reports for a living, but there is much more to know.
Just to add, Released from showing also can indicate that the Seller has some issue that has caused them to cancel showings for a temporary period i.e. medical reasons.
As for "negotiating short sale", sSometimes short sales are negotiated before offers are received. The listing agent could be working directly with the owner and mortgage company to get an agreement to sell for a certain amount. Or they could have received an offer (though in that case they would have probably left the status as "available").
Diantha Shaffer, Realtor
Dilbeck GMAC Realtors
If this has been a short sale they may be facing foreclosure now if it has been on the market that long. If the bank does not accept the offer then you can wait a few months or so and try to buy it as a bank owned property (if it doesn't sell at auction)
Yes, I am working with a lender now... it looks like after I make a few adjustments I will be ok getting a loan! But this will take another 60 days... I have to pay off a credit card balance, it will not show up on my credit report for about 60 days.
The house in question has been on the market since August! If they are negotiating a short sale... maybe in a few months this house will become a short sale and lower in price? That would be great! I am still not clear.. sorry
I forgot to ask you if you have been pre approved for a loan? That would be your first step.
All my best,