Aha, I was wondering how many are in my situation…I knew some of my friends were…
Thanks, Urbanrealtor! I may contact you in the future.
In short sales succes stories with <20% down, what was crucial factor for success? For example, the speed at visiting the property after it hit the MLS & making a decision & offer - how long was that? Other factors (beside the pre-approval with a serious lender)?
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I would keep an agent on retainer who knows your desires (as far as area and price and features). I would then do much of the work yourself. Check sdlookup daily and let the agent do work as well.
Responding quickly to cheap reos and shorts is important. Often I go to write up an offer on a compelling situation only to find it has gone pending in the last hour.
If the numbers make sense (and you should know your numbers before acquiring your target) pull the trigger that day. Sometimes the reo agents will put up road blocks (eg a preferred lender prequal, absurd addenda with offer) but a good agent will know how to deal with those.
Also, short sales require lots of patience. The seller's bank can take months after seller acceptance to give approval. Some clients make offers on short sales and keep looking. Since shorts generally don't require a deposit for acceptance, it does not automatically tie the buyer's hands for the time spent negotiating with the seller's lender. The buyer can still look around.
Again, I think the biggest disability of sub 20 buyers is the inability to structure a cash-heavy lowball. You simply don't have the ability to make funding a sure thing every time.
