How much should I put as a down payment for a short sale on a $300K home,?

Asked by Margarita, New Jersey Mon Mar 23, 2009

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John Sacktig, Agent, New Jersey, NJ
Mon Mar 30, 2009
Hi Margarita,

The stronger you look to the bank, the better your chances of securing the house.
If you are putting down 20%.. do the usual, $1,000 initial upon offer the remainder of 10% after attorney review and the additional 10% at closing, plus your mortgage.

Again, if you are serious and want the house.. use your numbers wisely.

John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969

Eamil or call to discuss further.
1 vote
Francesca Pa…, Agent, Manasquan, NJ
Thu Mar 26, 2009

As I understand it, the best "short sale" offer is that without any contingencies (home inspection or mortagage) with the "down payment" not being as imporantl (although a mortage pro may more appropriately respond to this post). Typically these sales are "as is" and the bank is not likely to negoatie any home inspection issues, but if you opt to not to do inspection post contract, this ma y provide you with an out should major, costly dfects be disclosed. If u are up against other offers without the home insp contigency this may cause u to loose he property, Banks expect u to be ready, willing and able at contract signing.

The "down payment" on a short sale should coinside with your personal "buyng power", which is typically determined by your mortgage representative.

As with any offer to purchase, terms of the offer are the motivating factor (ie, days to close contigencies, resource of funds (cash v. mortgage).
0 votes
Bill Eckler, Agent, Venice, FL
Mon Mar 23, 2009
We agree with Jefferson with two phase deposit approach that includes a small initial deposit followed by a larger amount.

The key here is to make sure the home inspection is completed prior to the secondary deposit being submitted. This way you will have the minimal amount invested should issues develop around the inspection.
0 votes
Jeff K, Home Buyer, Bristol, PA
Mon Mar 23, 2009
I would suggest an initial deposit of $1000, with another $14000 due within 10 days of the agreement being under contract by both parties. Why put down more until after they've signed - then your money is held hostage unless you walk or they sign - and this can take many months in a short sale.
0 votes
Michael Rayno, Agent, Cape May, NJ
Mon Mar 23, 2009
The norm is 5%. you should know that this money (check) will not be cashed until the bank has signed the agreement of sale and it has passed out of attorney review period.
0 votes
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