I'm a purchasing a house in the next 1-3 mo. Some Realtors I've talked to avoid short pays. Should I look at short pays or REOs? The prices

Asked by Kye Louis, Woodland Hills, CA Mon Dec 6, 2010

look good.

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Richard Schu…, Agent, Los Angeles, CA
Mon Dec 6, 2010
Don't avoid short pays!! In Woodland Hills, like many other areas, there are mostly short sale listings on the market. That means, if you skip them, you will be looking at a fraction of the available inventory. Here is the reality: short sales take a long time, and you cannot get a repair credit from a short sale. If you can deal with that, go after them! Agents only say that to avoid the extra work and hassle of closing a short sale. I have closed dozens of buyer short sales and I can do the same for you.

Richard Schulman
#1 Buyer's Representative
Keller Williams Realty
1 vote
Sara Mehrpou…, Agent, Los Angeles, CA
Mon Dec 6, 2010
Kye, I think that it depends on the property and the situation if it's a short sale. Some short sales may have a better chance of being approved. In regards to REOs, your agent should be able to let you know if the property is "priced well". Either way, you should try to work with someone who knows how to deal with REO and/or short sales in this market. I get calls from buyers sometimes that are working with other agents and start doing more research on their own because they are not getting enough info from their agent.

Feel free to contact me. I specialize in REO bank-owned and Short Sales.


Sara Mehrpouyan CDPE
Rodeo Realty
1 vote
Jeannine Sha…, , Northridge, CA
Mon Dec 6, 2010
A standard sale is the ideal type of transaction but there are so many good deals on short sales or REO's out there. a standard purchase may take only 45 days to go thru the escrow process and close but short sales can take longer 2- 6 months depending on the lenders involved.
1 vote
Maggie Oreck, Agent, Studio City, CA
Fri Mar 6, 2015
Of course you should. The only negative is that it may take a little longer specially with the short sales and some times may end up with the short sale not getting approved. REOs on the other side once your offer gets approved it is a secured transaction for you.

Let's Talk!

Maggie Oreck
Cal BRE Lic # 01352758
RE/MAX Showcase
0 votes
Zack King, Agent, Calabasas, CA
Sun Mar 3, 2013
The problem with short sales and REO's is they take time. If you are in a time crunch and need to be into a place by a certain date you may want to avoid them. However, if you are in no rush you should take a look you may be able to find a good deal.

Zack King
Keller Williams Estates Calabasas
(818) 825-7388
0 votes
Teri Spletts…, Agent, Los Angeles, CA
Fri Jan 25, 2013
Hi I am an experienced short sale agent. I recommend you definitely look at short pays. You can save a lot of money and they don't take as long as they used to. I can recommend a good agent to you if you like to message me teri.gea.realty@gmail.com
0 votes
inna ivchenko, Agent, Calabasas, CA
Fri Nov 9, 2012
Some agents do avoid SS and REOs. But most of us ~ don't.
Short sale can take time to close and a selling agent has a little to no control over this transaction.
I just noticed that the question is posted in 2010, things are changed, priced dropped, we see a lot of short sales these days.
for example right now in Woodland Hills( houses=sfr)
115 active listings
54 are looking for backup( most of them SS)
25 are on hold( most of them SS)
113 houses in Escrow( pending)
Lowest price: 349k for active
Highest: 3,550,000 for active.
Most of 115 active listings are standard (not that much REOs and SSs)

Let me know if I can be of service, I am a local Woodland Hills and West Hills realtor.
0 votes
Nima Davani, Agent, Woodland Hills, CA
Sun Jun 10, 2012
Best price best location is what it comes down to. We have hired attorney's to get short sales approved quicker. Also have a connection with many REO(s). Please call me for more details.



0 votes
Rosmawaty La…, Agent, Beverly Hills, CA
Sat Jun 9, 2012
Hello Kye,

in today market is more short sale than regular or REO. I highly suggest you should not avoid short sale.

Off course there is the downsize when you buy short sale/ REO compare to regular sale, which is:
Short sale you have to prepare the Waiting period, could be within 1 month to 1 year just to get acceptance on the price and terms. between those time, seller can change their mind to sell while waiting bank to approved short sale.

REO or Short sale is none negotiable deal. whats is mean when they accept your offer, they mostly counter you back with no repair. sometimes no termite or accept property AS-IS no home warranty

Since you may get better deal for REO or Short sale, you may consider extra cash for some repair, especially REO, some of REO's home I saw they are in bad shape not liveable.

Before you think about to buy property, please consult with your lender as well what type of your loan is. FHA loan has certain guidelines that will not let you buy home fixer upper, or not liveable.

Below is the link to the different between REO and Short Sale home.
www. rosyhomes.com/buyers/reo/

My suggestion is keep looking even if you put offer on Short sale or REO.

If you have any more questions regarding buying, feel free to email me rosy@rosyhomes.com

Have a great day
Web Reference:  http://www.rosyhomes.com
0 votes
Neal Grusky, Agent, Los Angeles, CA
Sun Dec 12, 2010
Hi Kyle,
The market is flooded with short sales and foreclosures. You should look at anything that might be of interest to you. The banks are often anxious to be somewhat flexible on these homes. Please note that short sales might require some amount of time for the banks to ok a price that you might offer on a property, so be prepared for this should it happen. Otherwise, there are so many opportunities that you should be though in your searches. I understand how the banks work , and can be quite helpful in dealing with banks, and standard foreclosures.
Let me know if I can be of any help to you.
take care,
0 votes
Nima Davani, Agent, Woodland Hills, CA
Tue Dec 7, 2010
Hi Kye,

I think you should never avoid any property that you have a interest in. Location is so important. In this market you need great connections and experience to get the job done. Please take a look at my track record at http://www.socalrepohomes.com and click, "Recent Home Sales." I also work and live in Woodland Hills, our company has been around for over 10 years. I look forward to assisting you with any of your Real Estate needs. Thanks!

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0 votes
Oren Barkan, , Woodland Hills, CA
Mon Dec 6, 2010
Yep, pretty much what they all said, lol. Look at everything out there. There is not so much inventory out there that you should discriminate.
0 votes
Catherine Be…, Agent, Lawndale, CA
Mon Dec 6, 2010
As others have already pointed out, you should look at the entire available inventory. All things being equal, a standard sale is a lot easier to close, however short pays come in very different sizes, some can be closed in the normal time it takes a standard sale, and some take months and months and do not get approved. Work with an experienced realtor who can help you navigate the transaction.

Please contact me if you need help to find the Right Property at the Right Price to close at the Right Time.

Best Regards,
Catherine Bedrossian
Home Sales Pro
(310) 383-4212
0 votes
Shaw Sadat, , Los Angeles County, CA
Mon Dec 6, 2010
Hello, current market is mostly short sales and foreclosures, why would you avoid them. I live in woodland hills, great area to purchase a home. I could help you find some good deals.

Shaw Sadat
Pinnacle Estate Properties
DRE# 01456976
0 votes
Janey Bishop, Agent, Calabasas, CA
Mon Dec 6, 2010
Don't rule anything out unequivocally but review each one to whether it is in your time frame. Also know that many short sale offerings are price unreasonably low and stand little chance of approval at that price.
0 votes
Emily Knell, Agent, Huntington Beach, CA
Mon Dec 6, 2010
Yes, don't rule out short sales, I hear a lot with the other answers about the banks not wanting to do repair credits. This is true with either a short sale OR a bank owned REO, HOWEVER......

You CAN get a short selling bank to pay for all or most of Termite Inspection costs & Repair. An REO, to my knowledge won't allow this sort of credit.

You CAN get a short selling bank to pay up to 3% of your closing costs. On an REO with the steep competition of other bidders, your offer asking for a 3% closing cost credit, probably won't get accepted.

You NEED to work with an agent who's going to be aggressive & look for potential short sale or standard sale listings that aren't necessarily current ON the market.

I am not in Woodland Hills, honestly that's a little far for me to work with a buyer, but if you'd like me to INTERVIEW & find you an agent who's going to be aggressive like this, please email me directly & let me know. I do know some great agents in that area, but I need to weed out the ones who aren't & ARE Really working short sales.

562-430-3053 cell
Realtor Since 1996
0 votes
Maria Corey, , Woodland Hills, CA
Mon Dec 6, 2010
Hi Kye,

Don't rule out short pays but you're better off finding an REO or standard sale due to the time frame of getting a short sale approved. In a short sale you need approval from BOTH the Seller and the bank and that's why you need to allow at least 30 days before you can even open escrow. REO's are much more straighforward as you're buying directly from the bank. However, don't expect much flexibility on price or terms. Many times they won't allow any credits for repairs as they think you're getting a steal anyway.

I hope this helps. Please feel free to contact me anytime. I live in Woodland Hills, Carlton Terrace to be specific, so I am very familiar with the market and the homes here.
0 votes
Bandele Ogun…, Agent, Woodland Hills, CA
Mon Dec 6, 2010
Hi Kye:

If you do not need to be in a home for at least 3 months from now, then you can look at shortsales. Yes, they do take time to close and it is not guaranteed that the seller's shortsale lender will approve the transaction. It is not even guaranteed that the seller has the property on the market in good faith, they ,may just list the property to stall foreclosure proceedings. However about 60% of the inventory are shortsales, so if you are not pressed for time, you should definitely consider shortsales. Other shortsale issues to consider, you will not get any repair credit, you have to purchase the property as is, and if you are relying on an FHA loan, be prepared to pay for all lender required repairs. BUT, if time or money is not an issue, consider shortsales.

Also consider REOs but be prepared to not get enough disclosures regarding the existing condition of the property and it is also difficult to get the REO owner to pay for repairs. Their purchase contract addendum usually transfers the risk of everything that could happen to the buyer. So it may be difficult to get damages if it turns out that the property you purchased is a lemon.

Clearly, regular sales are the most convenient for timing and negotiating terms that benefot you the buyer and getting adequate disclosures regarding the condition of the property. However, if timing, money, disclosures or financing are not issues for you, you should consider all 3 types, shortsales, REOs and regular sales.

I will be happy to review your situation, specifically and advise you better. I have closed 100% of my shortsale transactions so I will be happy to assist you with shortsales, REOs and regular sales. Please call me at 818-825-6996 or visit my website at http://www.BogunRealtyAndLuxuryHomes.com.

Other useful links:
Best Home Deals in Woodland Hills: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Bargain Luxury Homes in Woodland Hills, Hidden Hills, Calabasas: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Foreclosures + Bank-Owned Homes in Woodland Hills: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Short Sale Homes in Woodland Hills: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Fixer-Upper + Bargain Homes in Woodland Hills: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Seller Financed, Owner-Will-Carry, Lease-Option Homes: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

Fast-Track Short-Sales are Available to Home-Sellers in Distress - APPLY HERE!: http://bogunrealtyandluxuryhomes.com/RealtorWebPage?custompa…

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Bandele Oguntomilade
Bogun Realty and Luxury Homes
Phone: 818-825-6996
CA Department of Real Estate License #01479541
0 votes
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