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

[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)

[SD Realtor]

PMI can be petitioned to be removed when you can document that you have achieved 20% equity in the home. In a declining market this may be challenging to say the least. However yes it can be removed.

As far as short sales go you can fire off as many as you like. There is no obligation and not any cost to you to do so. Realize a few things though, first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. That is, say you submit the offer, then 3 months later get acceptance, then you do your inspections, then you go back to them and say, okay I want 8k back for repairs. The short sale negotiator has to then review the file yet again. I am not saying he will not agree to that, BUT it is not a path I would recommend you follow. You may want to think about getting the inspection done before you make the offer or just discount your offer by what you think the repairs may add up to. Once you get that approval on the short sale going back and getting a second approval because you want more money back is kind of a pain. Just my opinion as other realtors may feel different.

[SD Realtor]

PMI can be petitioned to be removed when you can document that you have achieved 20% equity in the home. In a declining market this may be challenging to say the least. However yes it can be removed.

As far as short sales go you can fire off as many as you like. There is no obligation and not any cost to you to do so. Realize a few things though, first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. That is, say you submit the offer, then 3 months later get acceptance, then you do your inspections, then you go back to them and say, okay I want 8k back for repairs. The short sale negotiator has to then review the file yet again. I am not saying he will not agree to that, BUT it is not a path I would recommend you follow. You may want to think about getting the inspection done before you make the offer or just discount your offer by what you think the repairs may add up to. Once you get that approval on the short sale going back and getting a second approval because you want more money back is kind of a pain. Just my opinion as other realtors may feel different.

[SD Realtor]

PMI can be petitioned to be removed when you can document that you have achieved 20% equity in the home. In a declining market this may be challenging to say the least. However yes it can be removed.

As far as short sales go you can fire off as many as you like. There is no obligation and not any cost to you to do so. Realize a few things though, first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. That is, say you submit the offer, then 3 months later get acceptance, then you do your inspections, then you go back to them and say, okay I want 8k back for repairs. The short sale negotiator has to then review the file yet again. I am not saying he will not agree to that, BUT it is not a path I would recommend you follow. You may want to think about getting the inspection done before you make the offer or just discount your offer by what you think the repairs may add up to. Once you get that approval on the short sale going back and getting a second approval because you want more money back is kind of a pain. Just my opinion as other realtors may feel different.

[SD Realtor]

PMI can be petitioned to be removed when you can document that you have achieved 20% equity in the home. In a declining market this may be challenging to say the least. However yes it can be removed.

As far as short sales go you can fire off as many as you like. There is no obligation and not any cost to you to do so. Realize a few things though, first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. That is, say you submit the offer, then 3 months later get acceptance, then you do your inspections, then you go back to them and say, okay I want 8k back for repairs. The short sale negotiator has to then review the file yet again. I am not saying he will not agree to that, BUT it is not a path I would recommend you follow. You may want to think about getting the inspection done before you make the offer or just discount your offer by what you think the repairs may add up to. Once you get that approval on the short sale going back and getting a second approval because you want more money back is kind of a pain. Just my opinion as other realtors may feel different.

[SD Realtor]

PMI can be petitioned to be removed when you can document that you have achieved 20% equity in the home. In a declining market this may be challenging to say the least. However yes it can be removed.

As far as short sales go you can fire off as many as you like. There is no obligation and not any cost to you to do so. Realize a few things though, first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. That is, say you submit the offer, then 3 months later get acceptance, then you do your inspections, then you go back to them and say, okay I want 8k back for repairs. The short sale negotiator has to then review the file yet again. I am not saying he will not agree to that, BUT it is not a path I would recommend you follow. You may want to think about getting the inspection done before you make the offer or just discount your offer by what you think the repairs may add up to. Once you get that approval on the short sale going back and getting a second approval because you want more money back is kind of a pain. Just my opinion as other realtors may feel different.

[Scarlett]

[quote=SD Realtor]
(…) first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. [/quote]

Thanks a lot, SD Realtor, that is a very good point, I haven’t thought about it! Very important to take into account.

I probably would eat the repair costs within, let’s say, 10K. I am not that much of a haggler…But if you submit an offer right away – no time for inspection, and then later find out something major, like 20K repairs for something wasn’t easy to spot with the naked eye, would you recommend to try to get concessions in this case if we don’t want to pay for it – or be prepared to walk out of the deal? Is it ok to walk?

[Scarlett]

[quote=SD Realtor]
(…) first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. [/quote]

Thanks a lot, SD Realtor, that is a very good point, I haven’t thought about it! Very important to take into account.

I probably would eat the repair costs within, let’s say, 10K. I am not that much of a haggler…But if you submit an offer right away – no time for inspection, and then later find out something major, like 20K repairs for something wasn’t easy to spot with the naked eye, would you recommend to try to get concessions in this case if we don’t want to pay for it – or be prepared to walk out of the deal? Is it ok to walk?

[Scarlett]

[quote=SD Realtor]
(…) first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. [/quote]

Thanks a lot, SD Realtor, that is a very good point, I haven’t thought about it! Very important to take into account.

I probably would eat the repair costs within, let’s say, 10K. I am not that much of a haggler…But if you submit an offer right away – no time for inspection, and then later find out something major, like 20K repairs for something wasn’t easy to spot with the naked eye, would you recommend to try to get concessions in this case if we don’t want to pay for it – or be prepared to walk out of the deal? Is it ok to walk?

[Scarlett]

[quote=SD Realtor]
(…) first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. [/quote]

Thanks a lot, SD Realtor, that is a very good point, I haven’t thought about it! Very important to take into account.

I probably would eat the repair costs within, let’s say, 10K. I am not that much of a haggler…But if you submit an offer right away – no time for inspection, and then later find out something major, like 20K repairs for something wasn’t easy to spot with the naked eye, would you recommend to try to get concessions in this case if we don’t want to pay for it – or be prepared to walk out of the deal? Is it ok to walk?

[Scarlett]

[quote=SD Realtor]
(…) first that the lending conditions when you submit the short sale may be drastically different then when the short sale is actually accepted. Additionally keep in mind that it is difficult, though not impossible to get any concessions from the lender authorizing the short sale after it has been accepted. What I mean by that is you may want to try to make sure that you either build in repair costs to your original offer. [/quote]

Thanks a lot, SD Realtor, that is a very good point, I haven’t thought about it! Very important to take into account.

I probably would eat the repair costs within, let’s say, 10K. I am not that much of a haggler…But if you submit an offer right away – no time for inspection, and then later find out something major, like 20K repairs for something wasn’t easy to spot with the naked eye, would you recommend to try to get concessions in this case if we don’t want to pay for it – or be prepared to walk out of the deal? Is it ok to walk?

[KCTxr]

We are maybe in a similar situation and looking in PQ. Lease here now and owner has stopped paying the bank. Add one more to that list.

[KCTxr]

We are maybe in a similar situation and looking in PQ. Lease here now and owner has stopped paying the bank. Add one more to that list.

[KCTxr]

We are maybe in a similar situation and looking in PQ. Lease here now and owner has stopped paying the bank. Add one more to that list.

[KCTxr]

We are maybe in a similar situation and looking in PQ. Lease here now and owner has stopped paying the bank. Add one more to that list.

[Author]

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