To Scarlett:
The things SD and sdr are saying are pretty much right.
Not a commitment until the contingencies are up.
I missed much of the conversation tonight because my buyer was dropping a verrrrry slooowwww moving reo when an older offer she had made on a short got approved by the lender (same lender ironically; you think they would have noticed). We were within contingencies and the reo deal had an asset manager who was out of touch with California. He wanted 3 bids before fixing a leaking gas line (I just called SDG&E while they took it up in committee). I have other clients who will make offers on a few short sales at a time. Again, if they are unable to sell in a timely manner, you have no real risk.
To esmith:
I often disagree with you ma’am but your suggestion of strategy is right on.
To patientrenter:
I really don’t think you have enough information to make those assertions. Lots of people who are perfectly capable of paying the mortgage on a $400,000 loan value are not likely to have an easy time saving an additional $100,000 for an 80% financed option.
Also, most of the reo’s I see (granted this is anecdotal) are not people with 5 or 10 percent cash purchases, with 30 year fixed loans, buying when PITI is comparable to rent.
Most appear to be people who financed 100% and/or bought when PITI was 2 times rent and/or were using a creative lending product.
How do you define one’s ability to afford something?
