Are short sales worth it for the buyer?

Submitted by kendog66 from CT - 05/04/2009 - 7:46am

Comments

Submitted by tmartin - 05/04/2009 - 5:35pm

If you are comparing short sales to REO's. The advantage to the buyer lies in the liability if there is a problem down the line.  In an REO transaction a buyer is required to sign an addendum which completely protects the bank should the buyer discover a problem with the home down the line. The new home owners have no recourse.  The bank has never lived in the house so they have no idea what problems may exist.  Hence an addendum completely protecting them, not the buyer.  In a short sale the seller is reqiured to disclose everything they know about the home and can be held liable should the new homeowners find a problem that should have been disclosed.   

Submitted by Frederic Din - 05/12/2009 - 7:41am

Many folks are trying to keep their homes by turning to a loan modification, however only a slight fraction are getting through. 
 
Loan Mod Fail Think Short Sale.
 
Protect your credit, cash, and future ability to purchase another home. 
 
If you're having trouble paying your mortgage,
Think Short Sale.  http://www.youtube.com/watch?v=4CThwHxnyoI
 
Sincerely,
Frederic Din, REALTOR(r)
Your Imperial Valley Housing Specialist
Imperial Valley, California
http://imperialvalleyreo.com

Submitted by dan - 11/13/2009 - 9:28am

Short Sales are a great method for shopping for a buyer...

Imagine the time line for normal short sale approval...we'll call it months. In the purchase contract add dates that if bank does not accept in 5 days(crazy I know) that your buyer CAN(not WILL) back out. The buyer can shop around make a few offers and be confident with that because they are not obligated to any one home. What ever falls first...there's your home. REO's do not allow such shopping. Additionally, short sales can be a good deal for those buyers who are patient and have an agent who "gets it". Do not inspections until offer is approved by bank...do inspections...if there is new information then it would be fair to renegotiate with the lender. They want to close, they want to not have another REO they are losing hundreds of Billions...what's another 10-40k between friends. In my experience, short sales, unless damaged or ugly, sell for no more than 10% less than market. Ugly home, patient buyer, renegotiated deal after inspections can work out to be a deal for the buyer for sure.

Dan Rogers
Reliance Realty Group
408-821-2250

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

Before You Post

All comments should be relevant to the topic of the post and are subject to the terms found in our User Agreement.

Asking a Question

If you'd like to ask a new question, please start a new topic.

Please no SPAM.

We nofollow all links and promptly remove unsolicited advertisements - spamming here is a complete waste of your time, so don't bother. Vendors who actually answer questions and provide value to our forums may include links to their company or service as part of their signature.