Have you ever bought real estate on a short sale?(now with pics) (1 Viewer)

[IC FBGCav]

Looking to buy a second home in the town I grew up in. The only reason I am even considering this is because the property is next to one my sister owns. The town has a ton of houses for sell, probably half are foreclosures. Almost no demand in the town compared to the supply. Think rust belt in PA. House is 60+ year old. Will never increase in value or at least that is what I believe and would be hard to sell IMO without sinking 10K into it.

I am being told shorts sales take a long time and it might be better to wait for the bank to foreclose on it. Anyone been through this?

 

[chet]

Yes. I got a great deal on our principal house and the one next to it. Submit a bid, wait for bank to accept or reject and if they accept, be ready to close quickly. Works great if you don't have a timeframe but not so great if you need a place to live.

 

[MattFancy]

My brother found a short sale 2 years ago he really liked. Ridiculous process. Took awhile, but they finally made an offer. After about 4-6 months, the bank got back to them and told my brother the sellers screwed up some paperwork and the process was going to take another 4-6 months. He ended up walking away.

If you're not in any hurry at all, then sure a short sale is fine. But there's nothing "short" about it. Just be prepared.

 

[IC FBGCav]

Yes. I got a great deal on our principal house and the one next to it. Submit a bid, wait for bank to accept or reject and if they accept, be ready to close quickly. Works great if you don't have a timeframe but not so great if you need a place to live.

I have no time frame and can pay cash. They are asking 50K for the property which is way over priced IMO for that area. How low would you bid?

 

[IC FBGCav]

My brother found a short sale 2 years ago he really liked. Ridiculous process. Took awhile, but they finally made an offer. After about 4-6 months, the bank got back to them and told my brother the sellers screwed up some paperwork and the process was going to take another 4-6 months. He ended up walking away.

If you're not in any hurry at all, then sure a short sale is fine. But there's nothing "short" about it. Just be prepared.

Ouch, thanks.

 

[dozer]

I've heard that short sale time frames are much shorter now than they were five-ten years ago.

I would advise anyone buying a short sale or a foreclosure to have the house inspected by a person working for you. It's almost guaranteed that you'll need plumbing work, and don't be surprised if most of the plumbing needs replaced.

 

[IC FBGCav]

I've heard that short sale time frames are much shorter now than they were five-ten years ago.

I would advise anyone buying a short sale or a foreclosure to have the house inspected by a person working for you. It's almost guaranteed that you'll need plumbing work, and don't be surprised if most of the plumbing needs replaced.

I am going to make the offer contingent with the right to pull the offer for 15 days so I can have it inspected.

 

[IC FBGCav]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

 

[dozer]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

How much do you think the property is worth? What are the asking prices of other houses with similar square footage for sale in the neighborhood?

 

[IC FBGCav]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

How much do you think the property is worth? What are the asking prices of other houses with similar square footage for sale in the neighborhood?

There is 250 for sale in the area and maybe 50 buyers.

 

[IC FBGCav]

Worth is maybe 40K the property will never appreciate..............unless the minimum wage goes to 15, then still don't know

 

[mr roboto]

Wait why do you want to buy it if the town is so depressed?

 

[chet]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

Without knowing anything else, I'd probably offer 35k assuming that's ~15-20% below mkt value.

 

[Random]

Prior sale prices? How long on the market?

 

[The Ref]

I bought a short sale in Florida roughly 3.5 years ago.

Most important part of it is to find out if the bank has approved the short sale or they are in the process of having the bank approve a short sale. If the bank hasn't approved it then this could go on for a year, so be prepared.

 

[IC FBGCav]

https://www.youtube.com/watch?v=1x8T2ozmwj8

I grew up here, looks like the hood now, same town. I cried when I saw this.

 

[IC FBGCav]

Everyone took care of their stuff back then, no pools or crappy fences will just played there.

 

[IC FBGCav]

Wait why do you want to buy it if the town is so depressed?

All my family is there.

 

[dozer]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

How much do you think the property is worth? What are the asking prices of other houses with similar square footage for sale in the neighborhood?

There is 250 for sale in the area and maybe 50 buyers.

Saw you said how much you think its worth.

 

[IC FBGCav]

I bought a short sale in Florida roughly 3.5 years ago.

Most important part of it is to find out if the bank has approved the short sale or they are in the process of having the bank approve a short sale. If the bank hasn't approved it then this could go on for a year, so be prepared.

I am pretty much dealing with the bank.

 

[dozer]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

Without knowing anything else, I'd probably offer 35k assuming that's ~15-20% below mkt value.

about right.

 

[IC FBGCav]

I found out the 41K is owed from the property.........what will the bank take? Seller has gave up to the banks approval.

How much do you think the property is worth? What are the asking prices of other houses with similar square footage for sale in the neighborhood?

There is 250 for sale in the area and maybe 50 buyers.

Saw you said how much you think its worth.

There is no resell value, been on the market a year, has no buyers. I am willing to lose 25000

 

[IC FBGCav]

http://www.zillow.com/homedetails/427-Butz-St-New-Castle-PA-16101/93628506_zpid/

 

[IC FBGCav]

Basement has a leak and I have to get a dumpster to clean out crap in said basement.

 

[Random]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

 

[The Ref]

Has anything else sold in the last three months?

 

[IC FBGCav]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

 

[The Ref]

I bought a short sale in Florida roughly 3.5 years ago.

Most important part of it is to find out if the bank has approved the short sale or they are in the process of having the bank approve a short sale. If the bank hasn't approved it then this could go on for a year, so be prepared.

I am pretty much dealing with the bank.

Like an actual person? Or someone via snail mail?

 

[IC FBGCav]

Has anything else sold in the last three months?

Two around there, per realtor.

 

[The Ref]

Has anything else sold in the last three months?

And what did they go for roughly?

Two around there, per realtor.

 

[IC FBGCav]

I bought a short sale in Florida roughly 3.5 years ago.

Most important part of it is to find out if the bank has approved the short sale or they are in the process of having the bank approve a short sale. If the bank hasn't approved it then this could go on for a year, so be prepared.

I am pretty much dealing with the bank.

Like an actual person? Or someone via snail mail?

Through realtor, but the woman who got screw out of the house is 87 and about blind. My sister has lived around the corner from her for 6 years. She is done with the house all bank.

 

[IC FBGCav]

Has anything else sold in the last three months?

And what did they go for roughly?

Two around there, per realtor.

She said mid 40's

 

[Random]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

 

[The Ref]

Show me the MLS with the details of the two sales or GTFO.

Not saying she isn't honest, but that's the only way you can determine "value".

 

[IC FBGCav]

My sisters place is connected to this house but she has about 2 acres of complete grass with the house.............almost a different place.

 

[IC FBGCav]

Show me the MLS with the details of the two sales or GTFO.

Not saying she isn't honest, but that's the only way you can determine "value".

Sister confirmed one place got sold but not price.

 

[IC FBGCav]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

 

[The Ref]

If you know the addy plug it into zillow and see what it says.

 

[Random]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

Will you also have enough cash to do the necessary repairs? Who is going to do the work?

 

[IC FBGCav]

BTW I got pre approved for a 50 to 150 loan.........getting a 30K mortgage is not easy.

 

[John Bender]

How does one find short sales?

 

[IC FBGCav]

If you know the addy plug it into zillow and see what it says.

It was two up for sale in the area, I put the link in here to the area

 

[chet]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

It's a rounding error for the bank but 20k is a significant discount to FV. Depends on how much the bank wants it off their books.

 

[IC FBGCav]

How does one find short sales?

By looking at a house, most are bank owned around there. Which is my other option, let it get foreclosed on.

 

[IC FBGCav]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

It's a rounding error for the bank but 20k is a significant discount to FV. Depends on how much the bank wants it off their books.

Yep, and it is Huntington bank, local.

 

[IC FBGCav]

There is no one moving to new castle, pa............and look at the houses for sell.

 

[avoiding injuries]

My primary residence was a short sale. I did an extensive thread here chronicling my process. We got a great deal on it, but we ended up selling our other house right away and had to live with my inlaws for 6 months.

 

[IC FBGCav]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

It's a rounding error for the bank but 20k is a significant discount to FV. Depends on how much the bank wants it off their books.

I know u would not by this but what is your best offer..............this is like buying a car for me.

 

[Random]

What do you mean what is your best offer? What is your purpose for buying this place? Rental?

 

[chet]

Not that I would advise purchasing a property in a depreciating neighborhood, but go in ridiculously low. I'd go in at 18 and see what they counter.

This is the why I posted the exact things, ty.

No problem. But you have to be willing to make your offer without contingencies, and a cash offer.

At 20K I can do cash.

It's a rounding error for the bank but 20k is a significant discount to FV. Depends on how much the bank wants it off their books.

I know u would not by this but what is your best offer..............this is like buying a car for me.

Have you talked to the seller's agent? When we did ours, the seller's agent was very helpful in advising us what he thought the bank would take etc. Remember, the agent just wants to get a deal done.