Home Buying in San Diego>Question Details

Logan J, Home Buyer in San Diego, CA

Is it easier to buy a home owned by a coroporation then a short sale?

Asked by Logan J, San Diego, CA Tue Aug 5, 2008

Is it easier to buy a home owned by a coroporation then a short sale?

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Silvia ,

Finially someone who understands short sales!!!
1 vote Thank Flag Link Tue Aug 5, 2008
Tim, Hold on a second!! I don't know for sure how the sale of a property is done in Texas, but in California, no lender is going to put a new mortgage behind existing leins,. They all get paid in the sale of the property and unless something is very odd, the buyer has an owners title policy to insure that they have clean title. Back HOA and other unpaid items will get paid by the seller on a short sale and if it was a foreclosure, they get wiped out by the foreclosure.

I am also seeing a trend on foreclosures that they are notreally going at a big discount. Short sales while they do take longer, ofter get the buyer a better deal. With a short sale, the buyer also gets full disclosure fork the seller as in most cases they are owber occipied and even if they ar enot there are still seller disclosure regarding the condition and usually the seller even if they did not occupy the property, does have knowledge of anything adverse that might have happened.
1 vote Thank Flag Link Tue Aug 5, 2008
Generally, yes. With a short sale you may be dealing with more than one lender who will have to agree to accepting less than what is owed on the property. Also, the lender in second position usually gets very little, if anything. Bank owned and corporate owned properties are easier to negotiate on.
1 vote Thank Flag Link Tue Aug 5, 2008
It is easier to buy a home from a corporation. A made an offer on a short sale for a client of mine and 6 weeks later we are still in negotiation. I made an offer on a corprate owned home and new anwer a day and half later. the big difference you will see buying a home from a corporation versus and individual owner is that there will be more paperwork. They have a lot of corporate disclosures you will need to sign and be aware of.

Best of Luck...Catherine Barden, Basic Brokerage Solutions
1 vote Thank Flag Link Tue Aug 5, 2008
i totally agree with Jay. When you do a short sale, the lender(s) will ask for a HUD1 estimate from the title company (most likely the one you choose) which will show everything that's owed by the seller. What the lender agreed will be the net proceeds after all liens and obligations are paid off. The title company will insure your title, you will get disclosures as a normal sale.

One of the things people overlooked and can be a great deal with very little inconvenience are the short sales that were in escrow and fell through because the buyers were tired of waiting for an answer. By that time, negotiations have started and sometimes the lenders even reached agreement. That's the best time to jump in and get a great deal with minimum time lost.

Don't underestimate a short sale! I don't.

0 votes Thank Flag Link Tue Aug 5, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
If you need to see the information on a particular property, contact Chicago Title customer service at 619.521.3478 . Mention my name and they will give you ownership of any property. Sometimes, corporate owned means bank owned, sometimes it isa corporate relocation property and other times a Limited Liability Company or some other "corporate entity". Most of this depends on how the listing agent describes the property in the Multiple Listing Service. The comments you received so far were all good. Note, however, that a common complaint about most bank owned property is that you may be in multiple offer situations. I don't think that is beneficial to you as a buyer. I teach Realtors to look for the longest listed properties, since they usually have larger price reductions, more motivated sellers and are likely "off of the radar screens" of most buyers.
0 votes Thank Flag Link Tue Aug 5, 2008
Hello Logan,

The short answer is yes; however, there have been some recent reports of fraud involving LLCs, so I recommend you and your Realtor fully understand the corporation's interest in the property, especially if the title was transferred recently,
0 votes Thank Flag Link Tue Aug 5, 2008
Bank or corporate owned properties are easier to purchase because they can be purchased for a cheaper price. Also, the bank is willing to be more flexible on the terms than with a short sale. There can possibly be leans on a short sale that have not been paid by the home owner, like unpaid home owners association dues. These have to be paid before the new owner can receive a clear title on the property. You might get a good price on a property, but have to pay unforseen penalties that the home owner was behind on.
0 votes Thank Flag Link Tue Aug 5, 2008
In my experience, yes. Almost anything is easier than a short sale. Buying property from a corporation is quite easy unless it is probate or another special set of circumstances.
0 votes Thank Flag Link Tue Aug 5, 2008
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