does anyone know how this works? or should i just look for regular house for sales. i am clueless
i'm not sure of all the details, but you basically would just owe the bank whatever the owner owes.. so for example, the owner could have bought their house at 360,000, but only owe 100,000 left on the mortage, the new buyers would be responsible for 100,000.... again, im SURE there are other expenses that are tied into that amount (like lawyer fees, etc) but i'm not sure
I know the banks used to have lists of homes that were in forclosure and you could get them that way but I don't think they have them anymore. DH finds them by looking in the real estate section of Newsday and stuff. I think there are websites, too, but I am not sure what they are.
Posted by RisiLeigh
I know the banks used to have lists of homes that were in forclosure and you could get them that way but I don't think they have them anymore. DH finds them by looking in the real estate section of Newsday and stuff. I think there are websites, too, but I am not sure what they are.
look for a 'Short Sale' that's where you don't owe the bank the remaining balance. This is where the bank itself takes a loss.
Posted by Ayne11
look for a 'Short Sale' that's where you don't owe the bank the remaining balance. This is where the bank itself takes a loss.
Posted by jillyb97
Posted by Ayne11
look for a 'Short Sale' that's where you don't owe the bank the remaining balance. This is where the bank itself takes a loss.
Just a quick word of advice on short sales - our house was a short sale, and I do really love it, but, they aren't for everyone. It took a REALLY long time, and it wasn't an easy thing. Granted, our situation was when they weren't as 'popular' as they are now, but short sales take a lot of time, and patience...and at times it was VERY frustrating...you are dealing with a bank, not the homeowner...so banks work their normal hours, and don't rush something just because it's beneficial to everyone else...
Posted by Ayne11
Posted by jillyb97
Posted by Ayne11
look for a 'Short Sale' that's where you don't owe the bank the remaining balance. This is where the bank itself takes a loss.
Just a quick word of advice on short sales - our house was a short sale, and I do really love it, but, they aren't for everyone. It took a REALLY long time, and it wasn't an easy thing. Granted, our situation was when they weren't as 'popular' as they are now, but short sales take a lot of time, and patience...and at times it was VERY frustrating...you are dealing with a bank, not the homeowner...so banks work their normal hours, and don't rush something just because it's beneficial to everyone else...
Oooh good to know! When DH and I are looking to buy I will have to remember that b/c I have NO patience!
Posted by jillyb97
Posted by Ayne11
Posted by jillyb97
Posted by Ayne11
look for a 'Short Sale' that's where you don't owe the bank the remaining balance. This is where the bank itself takes a loss.
Just a quick word of advice on short sales - our house was a short sale, and I do really love it, but, they aren't for everyone. It took a REALLY long time, and it wasn't an easy thing. Granted, our situation was when they weren't as 'popular' as they are now, but short sales take a lot of time, and patience...and at times it was VERY frustrating...you are dealing with a bank, not the homeowner...so banks work their normal hours, and don't rush something just because it's beneficial to everyone else...
Oooh good to know! When DH and I are looking to buy I will have to remember that b/c I have NO patience!
We put an offer in around mid March...we FINALLY heard that it was accepted by the bank at the end of June...And then, they want you to close asap (which wasn't a problem) but it was like, you made us wait 3 plus months to hear if we got the house, and now you want it done yesterday.
The biggest annoyance is that once you submit your offer to the bank you are technically in contract, so it's not like you can go put an offer on another house without losing your down pymt (yes, we had to put $$$ down when we submitted the offer in writing...)
Overall, we love the house, and I wouldn't change it, but, I'm happy if I can help someone else avoid the annoyance!![]()
Posted by yelley77
We are working on an approved short sale now. The offer was accepted within two weeks and we are officially in contract now. This all since October 27th, so it's moving pretty fast. HOWEVER, our lawyer told us that some short sales can take months, maybe even a year.
thanks girls for the info
Posted by jillyb97
Posted by yelley77
We are working on an approved short sale now. The offer was accepted within two weeks and we are officially in contract now. This all since October 27th, so it's moving pretty fast. HOWEVER, our lawyer told us that some short sales can take months, maybe even a year.
Yelley, if you don't mind me asking (and I'm not buying another house ANY time soon!!!) how exactly does the whole 'approved' part of it differ? Did you already know what your minimum offer would have to be?
Posted by yelley77
It means that the bank has already agreed to take a loss on the house. It works better for them than foreclosure because they get more money for the house this way. Some short sales (it sounds like you may have dealt with this) are not approved, the buyer makes and offer and the bank has to think it over, see how they will distribute your money (1st mortgage, 2nd morgage, etc) and see if what you are willing to pay is worth it for them.
The house we are interested, the home owner owes $440K. They have been trying to sell the house for about 2 years. Over the summer, another buyer offered $350K (90k less than what the seller owed) and the bank had to consider it. It wasn't approved at that time, so the process took forever for that buyer. Turns out something fell through and the house went back on the market as an approved short sale b/c the bank already decided that they would take the $90k loss on the house in order to stop it from foreclosing, where'd they'd get no where near what the home owners owe. We were ballsy and offered $300k and they came back with $329K and we settled at $316k.
If the short sale is approved, it saves the potential buyer a lot of grief and waiting time.
Sorry, i rambled on forever
Posted by jillyb97
Ha, thanks...that makes sense. Ours was, like you said, one where the bank had to consider everything and they were completely backed up with other things going on. The bank we dealt with also seemed to not really have a clue what was going on...It was a great situation all around.And, of course how it worked out, we ended up closing a month before the wedding, and 'attempting' to move in in mid -July...which meant we had unpacked boxes all over the place until after we got back from our honeymoon!
Sounds like you got a great deal on yours! Have you closed already? And where is it?
Best of Luck!!!
Posted by yelley77
I'm sorry your process took so long. You live and you learn. I assume you got a good deal on it (as most short sales result in that) and hopefully that made it all worth it. What town are you in?
Danielle - you got an awesome deal it sounds like. Hope it all works out for you!!! And you'll be in Huntington - we can bar hop!!!!
Posted by JBoothIn2008
Danielle - you got an awesome deal it sounds like. Hope it all works out for you!!! And you'll be in Huntington - we can bar hop!!!!
Posted by jillyb97
Posted by yelley77
I'm sorry your process took so long. You live and you learn. I assume you got a good deal on it (as most short sales result in that) and hopefully that made it all worth it. What town are you in?
We're in Wantagh. We did get a pretty good deal on it, so it all worked out. And as much as I complain about the whole process, I would probably do it all again for the house, cause I really love it. It was just the timing with the wedding that made it not so much fun. The house is / was basically new construction, as it was built in 2006 and only had people renting it for a little bit, so to get a brand new house (or as close as possible) it was definitely worth it. Here's a pic, cause I'm bored at work (although, 5 of the guys I work with are in the midst of planning weddings, so I'm also sitting here helping one of them with their programs!)
I can't wait til our house is decorated for Christmas though...I think that's the plan for this weekend!
So, you will have a new house for the new year! That's great! And I love Huntington...so nice...
Posted by yelley77
What a beautiful house!!! I'd love to see pictures of the inside!!!
