Chances of buying an REO or short-sale without 20% down?

[Eugene]

One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.

[Scarlett]

[quote=esmith]One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.[/quote]

Is that so? Can I change the down payment amount from the offer to the actual loan – for short sales & REOs? I wouldn’t push the down payment of the offer higher than what I do have in all my savings, but that would be certainly more than 20% for what I want, thus making the ‘offer’ strong enough. It doesn’t seem to me very fair, it would just make impossible for the sellers to determine the least risky/ more advantageous offer. (If it’s just one offer, there is no issue).

[Scarlett]

[quote=esmith]One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.[/quote]

Is that so? Can I change the down payment amount from the offer to the actual loan – for short sales & REOs? I wouldn’t push the down payment of the offer higher than what I do have in all my savings, but that would be certainly more than 20% for what I want, thus making the ‘offer’ strong enough. It doesn’t seem to me very fair, it would just make impossible for the sellers to determine the least risky/ more advantageous offer. (If it’s just one offer, there is no issue).

[Scarlett]

[quote=esmith]One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.[/quote]

Is that so? Can I change the down payment amount from the offer to the actual loan – for short sales & REOs? I wouldn’t push the down payment of the offer higher than what I do have in all my savings, but that would be certainly more than 20% for what I want, thus making the ‘offer’ strong enough. It doesn’t seem to me very fair, it would just make impossible for the sellers to determine the least risky/ more advantageous offer. (If it’s just one offer, there is no issue).

[Scarlett]

[quote=esmith]One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.[/quote]

Is that so? Can I change the down payment amount from the offer to the actual loan – for short sales & REOs? I wouldn’t push the down payment of the offer higher than what I do have in all my savings, but that would be certainly more than 20% for what I want, thus making the ‘offer’ strong enough. It doesn’t seem to me very fair, it would just make impossible for the sellers to determine the least risky/ more advantageous offer. (If it’s just one offer, there is no issue).

[Scarlett]

[quote=esmith]One thing that’s not been fully highlighted –

The down payment amount stated in the offer letter does not have to be the same as the down payment amount you end up making. You are not asked for proof of funds when you submit the offer.

E.g. if you’re making an offer for 600K and you’re concerned that your 10% down payment would make you look weak, you could write “deposit 6K, loan 417K, down payment 177K”. You may not even have 177K. When the offer is accepted, you run the numbers and make the down payment that is appropriate for the situation.

I think it’s a fairly common practice.[/quote]

Is that so? Can I change the down payment amount from the offer to the actual loan – for short sales & REOs? I wouldn’t push the down payment of the offer higher than what I do have in all my savings, but that would be certainly more than 20% for what I want, thus making the ‘offer’ strong enough. It doesn’t seem to me very fair, it would just make impossible for the sellers to determine the least risky/ more advantageous offer. (If it’s just one offer, there is no issue).

[Scarlett]

[quote=sdrealtor]I handle a lot of short sales and the single most important thing I look for is an agent that stays in touch with me regulalrly during the approval process. In the typical short sale, I submit an offer to a lender I think will get approved AND that I beleive is at a price I can replicate. (…)
Regardless, the agent that has stayed in touch through the 30 to 60 days it takes me to get the approval stands the best chance of getting the house for their buyer.[/quote]

Thanks, sdr, I’ll make sure of that if I will go after a short sale. You make many good points.

thanks,
Scarlett

[Scarlett]

[quote=sdrealtor]I handle a lot of short sales and the single most important thing I look for is an agent that stays in touch with me regulalrly during the approval process. In the typical short sale, I submit an offer to a lender I think will get approved AND that I beleive is at a price I can replicate. (…)
Regardless, the agent that has stayed in touch through the 30 to 60 days it takes me to get the approval stands the best chance of getting the house for their buyer.[/quote]

Thanks, sdr, I’ll make sure of that if I will go after a short sale. You make many good points.

thanks,
Scarlett

[Scarlett]

[quote=sdrealtor]I handle a lot of short sales and the single most important thing I look for is an agent that stays in touch with me regulalrly during the approval process. In the typical short sale, I submit an offer to a lender I think will get approved AND that I beleive is at a price I can replicate. (…)
Regardless, the agent that has stayed in touch through the 30 to 60 days it takes me to get the approval stands the best chance of getting the house for their buyer.[/quote]

Thanks, sdr, I’ll make sure of that if I will go after a short sale. You make many good points.

thanks,
Scarlett

[Scarlett]

[quote=sdrealtor]I handle a lot of short sales and the single most important thing I look for is an agent that stays in touch with me regulalrly during the approval process. In the typical short sale, I submit an offer to a lender I think will get approved AND that I beleive is at a price I can replicate. (…)
Regardless, the agent that has stayed in touch through the 30 to 60 days it takes me to get the approval stands the best chance of getting the house for their buyer.[/quote]

Thanks, sdr, I’ll make sure of that if I will go after a short sale. You make many good points.

thanks,
Scarlett

[Scarlett]

[quote=sdrealtor]I handle a lot of short sales and the single most important thing I look for is an agent that stays in touch with me regulalrly during the approval process. In the typical short sale, I submit an offer to a lender I think will get approved AND that I beleive is at a price I can replicate. (…)
Regardless, the agent that has stayed in touch through the 30 to 60 days it takes me to get the approval stands the best chance of getting the house for their buyer.[/quote]

Thanks, sdr, I’ll make sure of that if I will go after a short sale. You make many good points.

thanks,
Scarlett

[Scarlett]

[quote=sdrealtor]HLS, I didnt say a larger down means a stronger buyer, I said it means a perceived stronger buyer. (…)large down payments rule the day. We can verify the money is there via bank statements. A piece of paper from you or any other pre-approval letter is worthless to me unless I have a solid history and experience with you that I can base trust upon. (…)

Scarlet doesnt need to pay more, she needs a good agent. In choosing which buyer to go with, the agent who represents them and how they keep in contact with me through the short sale approval process is the single most important factor to me beyond a fair price and solidly qualified buyer. I never tell a buyer that I represent with a smaller down payment that they have to pay more. I tell them they might get trumped by another buyer with more cash and there is probably little they can do to overcome that and its OK. Make an offer you are comfortable with and stick with it. If not this house, there will be another.[/quote]

That’s what my realtor told me, more or less. Hey, ideally I should have HLS for my loan, and buy one of your (short sale) properties 🙂 I may try to arrange that, when the time comes sdr!

[Scarlett]

[quote=sdrealtor]HLS, I didnt say a larger down means a stronger buyer, I said it means a perceived stronger buyer. (…)large down payments rule the day. We can verify the money is there via bank statements. A piece of paper from you or any other pre-approval letter is worthless to me unless I have a solid history and experience with you that I can base trust upon. (…)

Scarlet doesnt need to pay more, she needs a good agent. In choosing which buyer to go with, the agent who represents them and how they keep in contact with me through the short sale approval process is the single most important factor to me beyond a fair price and solidly qualified buyer. I never tell a buyer that I represent with a smaller down payment that they have to pay more. I tell them they might get trumped by another buyer with more cash and there is probably little they can do to overcome that and its OK. Make an offer you are comfortable with and stick with it. If not this house, there will be another.[/quote]

That’s what my realtor told me, more or less. Hey, ideally I should have HLS for my loan, and buy one of your (short sale) properties 🙂 I may try to arrange that, when the time comes sdr!

[Scarlett]

[quote=sdrealtor]HLS, I didnt say a larger down means a stronger buyer, I said it means a perceived stronger buyer. (…)large down payments rule the day. We can verify the money is there via bank statements. A piece of paper from you or any other pre-approval letter is worthless to me unless I have a solid history and experience with you that I can base trust upon. (…)

Scarlet doesnt need to pay more, she needs a good agent. In choosing which buyer to go with, the agent who represents them and how they keep in contact with me through the short sale approval process is the single most important factor to me beyond a fair price and solidly qualified buyer. I never tell a buyer that I represent with a smaller down payment that they have to pay more. I tell them they might get trumped by another buyer with more cash and there is probably little they can do to overcome that and its OK. Make an offer you are comfortable with and stick with it. If not this house, there will be another.[/quote]

That’s what my realtor told me, more or less. Hey, ideally I should have HLS for my loan, and buy one of your (short sale) properties 🙂 I may try to arrange that, when the time comes sdr!

[Scarlett]

[quote=sdrealtor]HLS, I didnt say a larger down means a stronger buyer, I said it means a perceived stronger buyer. (…)large down payments rule the day. We can verify the money is there via bank statements. A piece of paper from you or any other pre-approval letter is worthless to me unless I have a solid history and experience with you that I can base trust upon. (…)

Scarlet doesnt need to pay more, she needs a good agent. In choosing which buyer to go with, the agent who represents them and how they keep in contact with me through the short sale approval process is the single most important factor to me beyond a fair price and solidly qualified buyer. I never tell a buyer that I represent with a smaller down payment that they have to pay more. I tell them they might get trumped by another buyer with more cash and there is probably little they can do to overcome that and its OK. Make an offer you are comfortable with and stick with it. If not this house, there will be another.[/quote]

That’s what my realtor told me, more or less. Hey, ideally I should have HLS for my loan, and buy one of your (short sale) properties 🙂 I may try to arrange that, when the time comes sdr!

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