Homes that are on short sale, if offered cash, is it still a long process

Asked by Tracy, Lehigh Acres, FL Wed Jul 11, 2012

Short sales

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
Fred Strickr…, Agent, New Port Richey, FL
Wed Jul 11, 2012
BEST ANSWER
Well I am not going to tell a horror story about short sales because I was the transaction broker for the Buyer on a Bank of America short sale, cash transaction that closed in 60 days. On the other hand, same bank, cash, it took 7 months. There are a great deal of obstacles that can present in a short sale. Many people believe cash influences the banks to take a lower price. Not so. Primarily the bank want to get what the appraisals and broker price opinions are telling them the home is worth based on the most recent sales of comparable homes.

Bottom line is, there is no telling the timeline on a short sale. Find a good Realtor® to work with who understand the short sale process and they will be able to do some research up front to determine any obstacles the will delay closing and determine how far along in the short sale process the homeowner is.

Keep in mind the following when purchasing a short sale:

Make sure that you find out if the currently homeowner has paid the HOA dues current! The banks generally will not pay more than the equivalent of 12 months dues. Once the dues become delinquent, the association will usually seek the help of the attorney and a $325 past due balance can quickly grown to over $5,000 or more and the bank won't likely pay it, and the homeowner usually can't because they have a financial hardship. Always ask the question if the association dues are paid current.

Three other items to be aware of, at least in the area I sell homes, the buyers are being required to turn the utilities on for inspections. This should be disclosed to you, but I have found that many times the listing Realtor is not disclosing this. This will require YOU to put up the deposits and pay the expense of turning the utilities on. Once last item, make sure you ask if there are any outstanding assessments that have not been paid that the seller may be unable to pay, like a road pavement assessment or special assessment. Find out if there is a negotiator fee. It is not uncommon for there to be a negotiator fee, however, you should know what that up front. Everything related to the transaction should be listed on your HUD settlement statement - no outside deals.

Best Wishes!

Sincerely,

Fred Strickroot, Realtor®, MBA, CDPE
HomeNet
Florida Lic. Real Estate Brokerage
2154 Seven Springs Blvd, Suite 103
Trinity, FL 34655
1-888-864-2758
727-478-8997
homenetyouteam@homenet.us.com
http://www.homenetyouteam.com - Earlier today
1 vote
Marc Comisar, Agent, Bonita Springs, FL
Wed Jul 11, 2012
by the way.....do not be afraid of them......great opportunity. Good and bad in every situation.

jessemcgreevy@gmail.com
239-898-5329
http://www.Domain-RealtyGroup.com
1 vote
Marc Comisar, Agent, Bonita Springs, FL
Wed Jul 11, 2012
Cash or Finance will not dictate the speed at which it is processed. It will be determined by 30+ other factors which need to come together. Let me know if we can help.


jessemcgreevy@gmail.com
239-898-5329
http://www.Domain-RealtyGroup.com
1 vote
Annette Law…, Agent, Palm Harbor, FL
Wed Aug 15, 2012
Short sales can be EXCELLENT opportunities to get a great deal....
...for specific buyers.

As Fred pointed out, in a short sale ANYTHING can and does happen!
It's the "Wild, Wild, West of Real Estate."

Whether you are buying cash or mortgage, it makes little difference.
There is one exception.

If you are one of the few qualified short sale buyers, use the resources, (cash or finance) that is most beneficial to you. Mortgage money is cheap right now.

Let me repeat...SHORT SALE CAN BE EXCEPTIONAL DEAL FOR THE RIGHT BUYER.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420. 4041
http://RealEstateMadeEZ.us
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Wed Aug 15, 2012
-
Short Sales are not good deals as the appraisals come in under the sales price.

What kind of good deal is that after you wait 10 mo.?

Short Sales are only good deals for the borrower working the system to avoid fullfilling their contractual obligations.

And that is the truth.
0 votes
Alex Medina, Agent, Lehigh Acres, FL
Tue Aug 14, 2012
Alex Medina
Prime Asset Realty
239-258-7761 direct line
239-258-7761 Fax Line

No homes in Short Sale dont not take a long time at all the delay is in the sellers and tiltle companys not providing the information need within due time. I have close Short Sales with CASH offers in as little as 28 day form listing to close. I do all the work on my own there for the file has all the attention needed in order to expidite the service. A cash offer does make the proses faster reason being there is no waiting period in underwriteing and bank love the fact that there is no financing involved. I have worked short sales that have taken me 90 day to get a responce from the asset manager. If the cash offer is a solid offer and not a lowball figuer the asset managers will help close it sooner. If you would like more information or have any questions please feel free to call me at any time.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Thu Jul 12, 2012
Absolutely. Unless the Seller has been preapproved by their mortgage lender for a short sale,m it's still likely to take 2--6 months to get a response and the response is still likely to be NO as the Sellers themselves don't qualify or there are other lien holders who won't agree.

Short sales are in my opinion a complete waste of a buyers time unless time isn't an issue and the discount is really significant.

Good Luck!
0 votes
Mark Washburn, Agent, Cape Coral, FL
Thu Jul 12, 2012
Paying cash for a short sale doesn't significantly impact the time frame to close. What takes time has significantly more to do with the seller, their level of cooperation, their current financial situation and the amount of debt on the property vs its value.

Short sales work best for buyers who are patient and don't have tight deadlines or other time constraints.
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Thu Jul 12, 2012
This is not 2008 - 2010

The pure fact is, and anyone who has to deal with these 2012 Short Sales (i.e. Long Sales) will all agree, they are NIGHTMARES!

As a Florida Mortgage Broker who has to deal with these Clown Cars full of Horrors all over the state, I can tell you that 99.9% of all my borrowers say they would never attempted to buy one again!

Problem is, they wait 10 months and at the end, the sales price the bank lets the property go for ends up being higher than the value!

Go ahead and Chase that Short Sale Carrot, you’ll see!
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Wed Jul 11, 2012
NIGHTMARES!

Clown Cars Full of Horrors!

10 Month "Hope To Gains"

10 month waste of time!

...and if you do finally get to the end without the seller going BK, the appraisal will come in under the sales price!

Stay away from them!
0 votes
Danielle Sha…, Agent, Cape Coral, FL
Wed Jul 11, 2012
The way a buyer pays (cash or finance) has zero to do with the amount of time it takes for the process to be approved by the seller's lender. It has everything to do with how quickly the seller cooperates and how quickly the seller's lender processes the paperwork.
0 votes
so if the seller really wants to sell, it may happen sooner?
Flag Wed Jul 11, 2012
Search Advice
Search
Ask our community a question
Home Buying in Popular Lehigh Acres Neighborhoods

Email me when…

Learn more