Hi Sabine, I am so glad you spoke with a lender. That paying off something or 10 other things is the reason to start early. See, now you know that you dont even need to look seriously for 60 days. That made that part of your decision easy.
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.