Advice on buying a home.

[TapNorris]

Originally Posted by Styx Cover Band

Don't buy a place that is a short sale. I'm trying to buy a condo that is a short sale and it is a pain waiting for the selling bank to approve it. My offer was $1,500 less than the selling price and it's been two months and I'm still waiting for the selling bank to approve it, pain in the ass.

My wife and I are considering buying a house that's a short sale. The garage needs a new roof, so we would probably offer less as well. But, we also need to get our townhouse sold before we can buy. Maybe a contingency offer on a short sale would work well for us and give us time to get ours sold? Anyone have input of short sale contingency offers?

[ExistenceNow]

What is a short sale?

[TapNorris]

Originally Posted by ExistenceNow

What is a short sale?

http://en.wikipedia.org/wiki/Short_s...real_estate%29

[Styx Cover Band]

Originally Posted by ExistenceNow

What is a short sale?

It's when the home owner is selling the house for less than what is owed on the mortgage, but it allows them to avoid going into foreclosure. The selling party and their bank who has the mortgage have to approve the sale. Depending on the bank I guess it usually takes 2-6 months to get everything approved

Edit: Dammit, beat me too it

[Mickey Carson]

Buying a short sale can definitely be a huge pain in the ass. My buddy just finalized a purchase of a short sale, but as someone alluded to earlier, it took about 3 months. He was pretty frazzled hoping the sale would be completed in time to quality for the first-time home buyer tax credit. After thinking the deal was finished with BofA, a second mortgage was discovered on the house that nearly killed his chance of purchasing. Ultimately, it worked out, but it was a nightmare for him. I would definitely avoid purchasing a short sale if at all possible.

[Styx Cover Band]

Buying a home is so frustrating. I've been trying to buy a place for over 4 months now. I've looked at about 20 places, put in offers on 4 of them and always seem to have something weird happen so I lose the place. (knock on wood) I hope I get this short sale, especially since I've waited two months to hear from the selling bank, if I don't get it I'm going to be pissed

[Nick@Night]

Originally Posted by Styx Cover Band

Buying a home is so frustrating. I've been trying to buy a place for over 4 months now. I've looked at about 20 places, put in offers on 4 of them and always seem to have something weird happen so I lose the place. (knock on wood) I hope I get this short sale, especially since I've waited two months to hear from the selling bank, if I don't get it I'm going to be pissed

Short sales are a joke, I went through the same bullshit before we finally got a place. The problem with most short sales is there is a second bank involved that holds a secondary loan on the property. The primary lender wants all the money from this short sale for themselves, figuring to just fuck the secondary lender out of their share. That secondary lender seems to hold up the approval process because they don't want to leave with nothing. It did for us twice and we ended up walking away from both offers, losing about 4 months of time in the process.

[Ascf33]

We're been looking for a about a month now. Probably viewed at least 25 houses. Only found 2 that we would even consider, with 1 a sure thing. There's just always something off that makes us hesitant. (ie: laundry room in the kitchen or small backyard etc). We're looking at 8 more moderately priced homes tomorrow to gauge some judgement between the two types of homes. We'll probably make an offer on Monday.

Also, we looked at our first short sale house last night and holy hell. This house was beat to shit. Stains and dirt all over the carpet. Ceilings had holes and stains. Desk was falling apart. Fuck that shit.

[Styx Cover Band]

Originally Posted by Nick@Night

Short sales are a joke, I went through the same bullshit before we finally got a place. The problem with most short sales is there is a second bank involved that holds a secondary loan on the property. The primary lender wants all the money from this short sale for themselves, figuring to just fuck the secondary lender out of their share. That secondary lender seems to hold up the approval process because they don't want to leave with nothing. It did for us twice and we ended up walking away from both offers, losing about 4 months of time in the process.

Wow that sucks. My realtor originally told me to stay away from short sales, but the short sale I'm trying to get was well under my price range, in great condition and is in a good location so i had to put an offer in

Originally Posted by Ascf33

Also, we looked at our first short sale house last night and holy hell. This house was beat to shit. Stains and dirt all over the carpet. Ceilings had holes and stains. Desk was falling apart. Fuck that shit.

I looked at some foreclosures that were down right scary. In one of them the people that got kicked out took everything. They ripped out the furnace, the hot water heater, they ripped out the entire kitchen; cabinets, counters, sink. they took all of the carpeting, they took all of the doors and put holes in most the walls

[Ascf33]

also, by desk I mean DECK.

[watchtower86]

Originally Posted by PilotC150

If you're planning on living there when your kids get to school ages. You might only plan on staying 10 years, and future kids might not be in school by that time. Hell, the school district may totally change by then.

Never really know how long you'll stay. My parents moved when I was 2 and were planning on being in that house for about 5 years. Nearly 22 years later, we're still in the same house. Looking ahead of time cannot hurt at all.

[Nick@Night]

Originally Posted by Styx Cover Band

Wow that sucks. My realtor originally told me to stay away from short sales, but the short sale I'm trying to get was well under my price range, in great condition and is in a good location so i had to put an offer in



I looked at some foreclosures that were down right scary. In one of them the people that got kicked out took everything. They ripped out the furnace, the hot water heater, they ripped out the entire kitchen; cabinets, counters, sink. they took all of the carpeting, they took all of the doors and put holes in most the walls

The two short sales we put offers in on were because of the price we were able to potentially to get them for. One was in turn-key condition and another needed a little TLC, but the price for it was hard to not make an offer on (60-70k less than the borrower paid for them less than 5 years ago). It actually worked out better, we went up in our price range and ended up with a never lived in finished construction townhome that was larger and better furnished than either of the two short sales.

[DallasLinz]

Originally Posted by Ascf33

We're been looking for a about a month now. Probably viewed at least 25 houses. Only found 2 that we would even consider, with 1 a sure thing. There's just always something off that makes us hesitant. (ie: laundry room in the kitchen or small backyard etc). We're looking at 8 more moderately priced homes tomorrow to gauge some judgement between the two types of homes. We'll probably make an offer on Monday.

Also, we looked at our first short sale house last night and holy hell. This house was beat to shit. Stains and dirt all over the carpet. Ceilings had holes and stains. Desk was falling apart. Fuck that shit.

Discuss what you like of those 25 homes and what you don't like and make a list of things you can and can't live without. Unless you build a house yourself you're never going to find everything you like. Or you have a crappy agent who is taking you to places you would never like because they suck.

Originally Posted by Styx Cover Band

Don't buy a place that is a short sale. I'm trying to buy a condo that is a short sale and it is a pain waiting for the selling bank to approve it. My offer was $1,500 less than the selling price and it's been two months and I'm still waiting for the selling bank to approve it, pain in the ass.

OMG HUGE PAIN! I totally agree. If you can deal with the annoyance its a great deal, but if you need a home, for-get-it! I lost one house to an 100% cash investor with a lower bid and gave up on another. The term "short sale" can be misleading. They should really rename it to "Pain in the ass Sale." Its sort of like boxing, the last man standing wins.

Originally Posted by Nick@Night

The two short sales we put offers in on were because of the price we were able to potentially to get them for. One was in turn-key condition and another needed a little TLC, but the price for it was hard to not make an offer on (60-70k less than the borrower paid for them less than 5 years ago). It actually worked out better, we went up in our price range and ended up with a never lived in finished construction townhome that was larger and better furnished than either of the two short sales.

That is EXACTLY what happen to me. Creepy similar.

[marco j]

Try to remember that cosmetic stuff isn't important, it's the expensive items that matter most (ie. roof, furnace, AC unit, etc.).

[AJF_41]

Originally Posted by marco j

Try to remember that cosmetic stuff isn't important, it's the expensive items that matter most (ie. roof, furnace, AC unit, etc.).

omgzzz!!!11!!! stains and dirty carpet!

[marco j]

^Exactly that shit is an easy and cheap fix while fixing a 10K roof is quite a pricey thing to overlook.

[Nick@Night]

Originally Posted by DallasLinz

Discuss what you like of those 25 homes and what you don't like and make a list of things you can and can't live without. Unless you build a house yourself you're never going to find everything you like. Or you have a crappy agent who is taking you to places you would never like because they suck.



OMG HUGE PAIN! I totally agree. If you can deal with the annoyance its a great deal, but if you need a home, for-get-it! I lost one house to an 100% cash investor with a lower bid and gave up on another. The term "short sale" can be misleading. They should really rename it to "Pain in the ass Sale." Its sort of like boxing, the last man standing wins.


That is EXACTLY what happen to me. Creepy similar.

Makes you think we went through that shit for a reason. Would have been nice to have a way cheaper mortgage, but I wonder if we would have been as happy with it.

[Ascf33]

Originally Posted by AJF_41

omgzzz!!!11!!! stains and dirty carpet!

Do you know how much it is to replace a carpet? Do you know how much a down payment is on a house? Most people have little to no money left for major upgrades like that before moving in. I'm not saying its a major thing like the foundation or roof, but it most certainly factors in.

[marco j]

^It shouldn't because it's an easy fix.

[Ascf33]

If you say so, moneybags!

[marco j]

Just because you can't replace it right away doesn't mean you can't replace it within a reasonable time. The cosmetic things are easy to fix over the years and take very little to increase the value of your property unlike the expensive items.

[eric81485]

Originally Posted by Styx Cover Band

Don't buy a place that is a short sale. I'm trying to buy a condo that is a short sale and it is a pain waiting for the selling bank to approve it. My offer was $1,500 less than the selling price and it's been two months and I'm still waiting for the selling bank to approve it, pain in the ass.

My wife and I bought a short sale about 6 months ago. It needed some TLC (carpet, paint, etc) but it was all cosmetic stuff that was an easy fix.
The house we bought was a bank approved short sale, meaning the bank approved the price that the home was listed at. We still offered less and the bank accepted, all within a month. So not all short sales take a long time, although most do.

[DrinkNoH2O]

Originally Posted by Bmwm3oz

Grats on the buy.
This is the same sort of thing I'm dealing with right now. My brother keeps trying to convince me to get a shitty house with land versus a nice new condo. I see his points, investment, freedom, space, privacy, etc...BUT that also comes with a lot of work.

I'm 22, work full time, and go to school so I don't really have time to work on a house..on the other hand, I don't want to pay home owner dues up the ass.




Good call. Thanks

Thanks to everyone else and keep it coming.

IMO you should keep renting then. This economy is a piece of shit and will likely get even worse before it gets better. Sure some will come in here and say "well interest rates are at an all time low so you should buy ASAP!"... While it's true that interest rates are low, they're not likely to raise within the next 18 months.

Let some other person own a deflating property and pay the maintenance for it while you rent it. You're a young person - don't lock yourself in yet.

[JanelleM]

Unless you have kids, home are overrated. Save your money and stay in an apt.

[DallasLinz]

Originally Posted by JanelleM

Unless you have kids, home are overrated. Save your money and stay in an apt.

Renting is in no way saving money.

[Nick@Night]

Originally Posted by JanelleM

Unless you have kids, home are overrated. Save your money and stay in an apt.

Wut? 5678

[DrinkNoH2O]

Originally Posted by DallasLinz

Renting is in no way saving money.

In plenty of cases it sure is - do the math. I hate to break it to you, but home prices as a whole are currently falling, not raising, so whatever you purchase today is going to be worth less tomorrow. Add in property taxes and maintenance and there are plenty of scenarios where you save money renting. This isn't your parent's economy.

[JanelleM]

I've owned two homes and I just don't get they hype. Plus taxes are insane. I pay $500/month in taxes alone. I would rather have a low rent payment and put the $1,000-$1,300 a month I would be saving on mortgage into my retirement fund. Homes are boring. Too much work and money.

[eric81485]

Originally Posted by DrinkNoH2O

In plenty of cases it sure is - do the math. I hate to break it to you, but home prices as a whole are currently falling, not raising, so whatever you purchase today is going to be worth less tomorrow. Add in property taxes and maintenance and there are plenty of scenarios where you save money renting. This isn't your parent's economy.

But if you are planning on staying in the home for 5-10 years the market should pick up. You are not going to buy a house today and sell it tomorrow.

[Nick@Night]

Paying rent means you're making someone else's mortgage payment, so why not pay your own?