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

[Scarlett]

[quote=esmith]

If you want to get a short sale, you need to make an offer that is low enough for you to like and high enough for the bank to approve, and you need to stick around long enough for your offer to make it through the system.
[/quote]

What exactly do you mean by ‘sticking around long enough for your offer to make it through the system’? What does one have to do, after submitting an offer? Sorry, I have no knowledge of how the short sales work – yet!

[(former)FormerSanDiegan]

[quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.

[(former)FormerSanDiegan]

[quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.

[(former)FormerSanDiegan]

[quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.

[(former)FormerSanDiegan]

[quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.

[(former)FormerSanDiegan]

[quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.

[Scarlett]

[quote=urbanrealtor]
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.[/quote]
Ah, I am good at doing a lot of work, and watching the new listings on various websites. Did that succesfully when I bought my first house.

[quote=urbanrealtor]
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.
[/quote]

Patience, we have, and when the time comes closer, we’d rent month to month, so that won’t be an issue.

So, a buyer can submit 2 offers on 2 different properties that are short sales, at the same time, both with, let’s say, 10% down?

If the buyer’s offer is approved by the seller’s lender(s) can the buyer still walk on it? When does it become cash comittment?

[/quote]

[Scarlett]

[quote=urbanrealtor]
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.[/quote]
Ah, I am good at doing a lot of work, and watching the new listings on various websites. Did that succesfully when I bought my first house.

[quote=urbanrealtor]
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.
[/quote]

Patience, we have, and when the time comes closer, we’d rent month to month, so that won’t be an issue.

So, a buyer can submit 2 offers on 2 different properties that are short sales, at the same time, both with, let’s say, 10% down?

If the buyer’s offer is approved by the seller’s lender(s) can the buyer still walk on it? When does it become cash comittment?

[/quote]

[Scarlett]

[quote=urbanrealtor]
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.[/quote]
Ah, I am good at doing a lot of work, and watching the new listings on various websites. Did that succesfully when I bought my first house.

[quote=urbanrealtor]
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.
[/quote]

Patience, we have, and when the time comes closer, we’d rent month to month, so that won’t be an issue.

So, a buyer can submit 2 offers on 2 different properties that are short sales, at the same time, both with, let’s say, 10% down?

If the buyer’s offer is approved by the seller’s lender(s) can the buyer still walk on it? When does it become cash comittment?

[/quote]

[Scarlett]

[quote=urbanrealtor]
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.[/quote]
Ah, I am good at doing a lot of work, and watching the new listings on various websites. Did that succesfully when I bought my first house.

[quote=urbanrealtor]
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.
[/quote]

Patience, we have, and when the time comes closer, we’d rent month to month, so that won’t be an issue.

So, a buyer can submit 2 offers on 2 different properties that are short sales, at the same time, both with, let’s say, 10% down?

If the buyer’s offer is approved by the seller’s lender(s) can the buyer still walk on it? When does it become cash comittment?

[/quote]

[Scarlett]

[quote=urbanrealtor]
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.[/quote]
Ah, I am good at doing a lot of work, and watching the new listings on various websites. Did that succesfully when I bought my first house.

[quote=urbanrealtor]
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.
[/quote]

Patience, we have, and when the time comes closer, we’d rent month to month, so that won’t be an issue.

So, a buyer can submit 2 offers on 2 different properties that are short sales, at the same time, both with, let’s say, 10% down?

If the buyer’s offer is approved by the seller’s lender(s) can the buyer still walk on it? When does it become cash comittment?

[/quote]

[Scarlett]

[quote=FormerSanDiegan][quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.[/quote]

True, true! But also to keep in mind the PMI, albeit not negligible, is only for a few years, while the rate is until you re-fi (assuming fixed rate loan)

[Scarlett]

[quote=FormerSanDiegan][quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.[/quote]

True, true! But also to keep in mind the PMI, albeit not negligible, is only for a few years, while the rate is until you re-fi (assuming fixed rate loan)

[Scarlett]

[quote=FormerSanDiegan][quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.[/quote]

True, true! But also to keep in mind the PMI, albeit not negligible, is only for a few years, while the rate is until you re-fi (assuming fixed rate loan)

[Scarlett]

[quote=FormerSanDiegan][quote=SD Realtor]

I am not sure I agree with that concept but it is indeed happening. Also you may not have to save another 10% to get to 20% down. Maybe you need to save 5% and housing prices drop another 5% and then you have made it.
[/quote]

Not sure the lender would apply the same interest rate and relieve the buyer of PMI though. So, it’s not really 20% down.

But a good point, nonetheless.[/quote]

True, true! But also to keep in mind the PMI, albeit not negligible, is only for a few years, while the rate is until you re-fi (assuming fixed rate loan)

[Author]

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