Home & Garden Has Anyone Purchased a Home in Foreclosure?

#16
k2sealer said:
Keep in mind that short sales take FOREVER. Or what seems like forever. If you are impatient, you would be better off looking at traditional sales. It can take as little as 3 months to close on a short sale, or much much longer. It all depends. Talk to your agent about their success rate with closing short sales. Some agents can close all their short sales, some never do. You (obviously) want one of the former.
Click to expand...

Thanks. My realtor has prepared us that it could take months. We are very patient, as we were initially looking to purchase next spring. So with the months we have to wait, it sounds about accurate. Lol. The only thing I'm worried about is someone submitting an offer after ours. The house is such a steal that I'm antsy and don't want anyone to come along at the last minute and take it.

My realtor is very seasoned and has been in the business for decades. I just like to get a real life point of view from people who may have been down the road before.
 
#17
I am excited for you, nikki2229. I hope that it all goes well, and that you will keep us posted on the progress. it is interesting to see it unfold. :flowers: fingers crossed for you!
 
#18
nikki2229 said:
Thank you. We put in an offer for a short sale. They took a $490k loan out on the home in 2006. They just dropped the asking price significantly from $380 to $229k. We took the advice of our realtor and offered $210k. Surprisingly, the house is immaculate even though they turned every liveable space into a bedroom.

We are so nervous. I don't want to lose this house. Our realtor thinks we have a good shot since we are the first offer in and he said the banks like to deal with one offer at a time.

We are hoping that if another offer comes through, they will give us the chance to bid higher and not just reject our offer.

What has been your experince in dealing with multiple offers on a property with the bank?
Click to expand...

In my experience, the banks like to deal with one offer at a time, but if we get a higher offer, we let the buyers in the first offer know before we submit it to the bank. The buyer in the first offer has the opportunity to make a competitive bid for a higher amount. Then the second buyer can bid again. It may go back and forth a few times.

One thing to remember, that even if you offered $210K, the bank could make a counter offer. This happens more often than not in my area. It is a negotiation scenario, so keep that in mind. And do not get carried away, or let emotions take over. Do not allow yourself to be pressured to spend more than you can afford. Something else will come along, it always does.

And be prepared to do the hurry up and wait. Banks move at a snail's pace, but once they do move, they will ask you for things to be completed in a couple days, such as the Arms Length Addendum, which needs to be notarized. All in all, it is a waiting game, you may not hear anything from the bank for 2-3 weeks, then they send the realtor a message, asking for this form or that form, or the buyer's proof of funds, or pre-approval letter, etc.

The process can try your patience, but if you are willing to commit to the time, you can end up with a great deal.
 
#19
jburgh said:
In my experience, the banks like to deal with one offer at a time, but if we get a higher offer, we let the buyers in the first offer know before we submit it to the bank. The buyer in the first offer has the opportunity to make a competitive bid for a higher amount. Then the second buyer can bid again. It may go back and forth a few times.

One thing to remember, that even if you offered $210K, the bank could make a counter offer. This happens more often than not in my area. It is a negotiation scenario, so keep that in mind. And do not get carried away, or let emotions take over. Do not allow yourself to be pressured to spend more than you can afford. Something else will come along, it always does.

And be prepared to do the hurry up and wait. Banks move at a snail's pace, but once they do move, they will ask you for things to be completed in a couple days, such as the Arms Length Addendum, which needs to be notarized. All in all, it is a waiting game, you may not hear anything from the bank for 2-3 weeks, then they send the realtor a message, asking for this form or that form, or the buyer's proof of funds, or pre-approval letter, etc.

The process can try your patience, but if you are willing to commit to the time, you can end up with a great deal.
Click to expand...


Thanks for all of your advice. My realtor has warned us of the hurry up and wait effect. I work with doctors so I am subjected to it daily, lol.

We are prepared to up our offer in the event of a counter. It has been on the market for at least 9 months that I can track. So far, the bank has been very responsive. They've already requested additional paperwork and some addendums are going in today.

I am a very patient lady. So with fingers crossed and prayer, I know we will get the house intended for us in the end.

You're a gem. Thank ou for responding.
 
#20
nikki2229 said:
Thanks for all of your advice. My realtor has warned us of the hurry up and wait effect. I work with doctors so I am subjected to it daily, lol.

We are prepared to up our offer in the event of a counter. It has been on the market for at least 9 months that I can track. So far, the bank has been very responsive. They've already requested additional paperwork and some addendums are going in today.

I am a very patient lady. So with fingers crossed and prayer, I know we will get the house intended for us in the end.

You're a gem. Thank ou for responding.
Click to expand...

I hope it works out! Keeping perspective is so important. So many buyers want the deal to happen quickly and it just has to work its way through the system. The more you know about the process, the better prepared you are to follow it to the conclusion. Good luck! Are you waiting until lender approval to do the inspection? Does your location have side sewers? If so, and the home is older, make sure to also get a sewer scope. Talk to your agent about this. Most banks in short sales will not pay for large repairs and a broken side sewer can cost 15-30 thousand to repair.
 
#21
jburgh said:
I hope it works out! Keeping perspective is so important. So many buyers want the deal to happen quickly and it just has to work its way through the system. The more you know about the process, the better prepared you are to follow it to the conclusion. Good luck! Are you waiting until lender approval to do the inspection? Does your location have side sewers? If so, and the home is older, make sure to also get a sewer scope. Talk to your agent about this. Most banks in short sales will not pay for large repairs and a broken side sewer can cost 15-30 thousand to repair.
Click to expand...

Thanks! I am waiting to do the inspection. My realtor advised us not to spend money until we know what the bank will say. He is checking with the city to see of any permits or oil tanks. I will ask him about the sewer.

Thanks again for all of your advice.
 
#22
CobaltBlu said:
I am excited for you, nikki2229. I hope that it all goes well, and that you will keep us posted on the progress. it is interesting to see it unfold. :flowers: fingers crossed for you!
Click to expand...


Hi :biggrin:!
I just wanted to do an update.
The house had 2 loans on it. We have an approval for the first loan and we are expecting an approval for the second one on Tuesday. Of course, the bank wants to move at lightning speed and close in one month after months of silence.:shrugs:
But we are taking everything in stride. I am praying that everything goes smoothly as far as mortgage commitment, inspection and closing. I am prepared for some unexpected things to happen though.

All in all, we are excited for the next chapter.

I will keep you guys updated.

I just wanted to thank you, Jburgh and Melissa71 for all of your comments and support.
 
#30
whimsic said:
Good luck! That must be so exciting :biggrin:
Click to expand...


Thank you. It is exciting and nerve racking at the same time.

The inspection went well. Just some roof repairs, which we expected, and minor cosmetic things. So next up, we have to get the oil tank inspected. The house has gas now but we just want to see what they did with the oil tank.

Praying that all goes well.
 
You must log in or register to reply here.
Top
Back