I want to put an offer on a short sale but need to sell my house first. Will the lender consider my offer?

Asked by Linda, California Sat Oct 20, 2007

Will the lender on a short sale deny my offer on the property because my offer is contingent on me selling my home first?

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8
Shannon Moore…, Agent, Port Charlotte, FL
Mon Dec 31, 2007
No, the bank will not generally take any contingencies on a short sale contract. I have found that very often they are not really flexible on price either. Once the house house has been forclosed on, they are usually willing to come down more in price but still would not usually take an offer contigent on selling your home.
Web Reference:  http://www.twomoores.net
1 vote
The Hagley G…, Agent, Pleasanton, CA
Sat Oct 20, 2007
They will not accept a contingency....but the good news (in this case) is that the short sale process can take a while to get through the lender. Are you ready to put your home on the market now? It may still be available once your home sells.
Web Reference:  http://www.cindihagley.com
1 vote
Joyce Zangme…, Agent, Thousand Oaks, CA
Tue Jul 1, 2008
A lender on a short sale will not consider any buyer contingencies. If you truly want to purchase a short sale property, you must get you home sold and closed escrow. In the interim, you may need to have a short term rental or move in with friends or relatives.

One more point to remember -- just because the homeowner of the short sale agrees to your purchase price and terms of the contract , the short sale lender might not agree. Getting short sale approval is not automatic. Be prepared if this happens to you.

If you need more local information on Ventura County, CA, please give me a call at (805) 377-7172.

Good luck!
Web Reference:  http://www.GregandJoyce.com
0 votes
Christina Hu…, , 91362
Fri Feb 29, 2008
The banks will not accept contingent offers, however with a short sale you can cancel your offer at anytime before the approval. You could make the offer and list your house for sale. A short sale approval can take months to approve. Some don't get approved though - so you run the risk of selling your house and then not getting the short sale. If your ultimate goal is to sell your home and buy another home at a great price, you should consider selling your home first. Depending on how you price your home, it may take 90 days or more to sell. If it sells and you have not found a replacement home, you can rent until you do. These are just a few broad strategies. This market offers a lot of opportunities, you just have to be creative and smart about the moves you make. Working with an experienced professional to help you determne the best course of action for your personal situation and long term goals is critical.
Web Reference:  http://www.callchristina.net
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sun Oct 21, 2007
O.K. Highly, highly unlikely.

But, I am in the school of thought that unless you try, you never know; but why would you want to try?

A short sale is already a very convoluted process if you read those posts. It teaks forever to even know the lender agrees with your terms, and they throw all kinds of curve balls at you anyway. So, you submit an offer on short sale, and you put your house on the market, if not already on, you get it all ready, your agent market the house; maybe you get an offer quickly, and you have to tell the buyer (note, this is a buyers market), that sorry, you are in the process of getting a short sale approved, so they may have to wait forever before they know if they get the house or not; so, they may or may not go with your house, and so on.

So, is it going to be worth it; the short sale, and the contingency, even if they will take it?

Best,
Sylvia
0 votes
Deborah Madey, Agent, Brick, NJ
Sun Oct 21, 2007
Highly unlikely........................
0 votes
Elizabeth Bu…, Agent, Englewood, FL
Sun Oct 21, 2007
The bank that has possession of the property will not accept any contingenies in the contract. The house will be AS IS with right to Inspect and the buyer usually pays the doc Stamp tax, Title. and whatever cost regulated by the state the home is in. Consult a Real Estate agent that is familiar with Short Sales
Web Reference:  http://ww.BayToGulfHomes.com
0 votes
Pam Winterba…, Agent, Danville, VA
Sat Oct 20, 2007
In order to have a short sale approved there must be NO contingencies in the offer.
0 votes
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