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

[HLS]

Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.

[sdrealtor]

HLS
Stick to what you know. Lenders and SHort Seller select the strongest buyers. They do care where it comes from if things are equal or close. The bigger the down payment, the less perceived risk the buyer wont qualify for the loan because in RE we deal with limited information regarding the buyers true qualifications. As listing agents, we dont get access to the same information on potential buyers as you do for them.

[sdrealtor]

HLS
Stick to what you know. Lenders and SHort Seller select the strongest buyers. They do care where it comes from if things are equal or close. The bigger the down payment, the less perceived risk the buyer wont qualify for the loan because in RE we deal with limited information regarding the buyers true qualifications. As listing agents, we dont get access to the same information on potential buyers as you do for them.

[sdrealtor]

HLS
Stick to what you know. Lenders and SHort Seller select the strongest buyers. They do care where it comes from if things are equal or close. The bigger the down payment, the less perceived risk the buyer wont qualify for the loan because in RE we deal with limited information regarding the buyers true qualifications. As listing agents, we dont get access to the same information on potential buyers as you do for them.

[sdrealtor]

HLS
Stick to what you know. Lenders and SHort Seller select the strongest buyers. They do care where it comes from if things are equal or close. The bigger the down payment, the less perceived risk the buyer wont qualify for the loan because in RE we deal with limited information regarding the buyers true qualifications. As listing agents, we dont get access to the same information on potential buyers as you do for them.

[sdrealtor]

HLS
Stick to what you know. Lenders and SHort Seller select the strongest buyers. They do care where it comes from if things are equal or close. The bigger the down payment, the less perceived risk the buyer wont qualify for the loan because in RE we deal with limited information regarding the buyers true qualifications. As listing agents, we dont get access to the same information on potential buyers as you do for them.

[Scarlett]

[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.[/quote]

HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers.
I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.

Thanks for all your input,HLS.

BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.

[Scarlett]

[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.[/quote]

HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers.
I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.

Thanks for all your input,HLS.

BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.

[Scarlett]

[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.[/quote]

HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers.
I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.

Thanks for all your input,HLS.

BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.

[Scarlett]

[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.[/quote]

HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers.
I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.

Thanks for all your input,HLS.

BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.

[Scarlett]

[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??

Do you think that REO sellers don’t deal with approved buyers ??

The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.

The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.

I’m still confused by your original question.[/quote]

HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers.
I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.

Thanks for all your input,HLS.

BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.

[HLS]

sdr, Thanks for the advice. I’ve been involved with So Cal Real Estate for over 25 years.
I’ve dealt with my share of ignorant mortgage and RE agents, there is no shortage of either.

There are some sellers that might believe that a larger down means a stronger buyer, but that is nonsense. Not all sellers are that stupid. They get their money at closing regardless of the down payment.

I can provide approvals and get loans done quickly for strong borrowers. It’s ignorance that makes people think that a larger down is a better offer.

sdr, you already mentioned that you have had buyers in escrow for ages, while I am closing loans in a couple of weeks.

Many agents are absolute idiots, as well as many mortgage people are. Get a good agent and a good mortgage person together and deals will happen quickly.

The generalizations that are thrown around mislead strong borrowers like Scarlett to believe that they need to pay a higher price that they really need to.

Scarlett, you need a good agent that can represent you, and I don’t believe that you need to overpay to compete with a larger down offer.

Are you being told that your higher offer will get trumped by a lower offer with a larger down payment ??

I’m sure it was a REALTOR that told you you will have to pay more to compete…

FHA and FNMA loan limits have changed, they have gone down. You can qualify for more than you want to borrow.

I hope that you are getting good advice about your loan options, but it doesn’t sound like it. You are a strong borrower, even with a low down.

I imagine that it is a REALTOR telling you that you aren’t a strong buyer ??
GIVE ME A BREAK….

I’d love the opportunity to work with you. . HLS

[HLS]

sdr, Thanks for the advice. I’ve been involved with So Cal Real Estate for over 25 years.
I’ve dealt with my share of ignorant mortgage and RE agents, there is no shortage of either.

There are some sellers that might believe that a larger down means a stronger buyer, but that is nonsense. Not all sellers are that stupid. They get their money at closing regardless of the down payment.

I can provide approvals and get loans done quickly for strong borrowers. It’s ignorance that makes people think that a larger down is a better offer.

sdr, you already mentioned that you have had buyers in escrow for ages, while I am closing loans in a couple of weeks.

Many agents are absolute idiots, as well as many mortgage people are. Get a good agent and a good mortgage person together and deals will happen quickly.

The generalizations that are thrown around mislead strong borrowers like Scarlett to believe that they need to pay a higher price that they really need to.

Scarlett, you need a good agent that can represent you, and I don’t believe that you need to overpay to compete with a larger down offer.

Are you being told that your higher offer will get trumped by a lower offer with a larger down payment ??

I’m sure it was a REALTOR that told you you will have to pay more to compete…

FHA and FNMA loan limits have changed, they have gone down. You can qualify for more than you want to borrow.

I hope that you are getting good advice about your loan options, but it doesn’t sound like it. You are a strong borrower, even with a low down.

I imagine that it is a REALTOR telling you that you aren’t a strong buyer ??
GIVE ME A BREAK….

I’d love the opportunity to work with you. . HLS

[HLS]

sdr, Thanks for the advice. I’ve been involved with So Cal Real Estate for over 25 years.
I’ve dealt with my share of ignorant mortgage and RE agents, there is no shortage of either.

There are some sellers that might believe that a larger down means a stronger buyer, but that is nonsense. Not all sellers are that stupid. They get their money at closing regardless of the down payment.

I can provide approvals and get loans done quickly for strong borrowers. It’s ignorance that makes people think that a larger down is a better offer.

sdr, you already mentioned that you have had buyers in escrow for ages, while I am closing loans in a couple of weeks.

Many agents are absolute idiots, as well as many mortgage people are. Get a good agent and a good mortgage person together and deals will happen quickly.

The generalizations that are thrown around mislead strong borrowers like Scarlett to believe that they need to pay a higher price that they really need to.

Scarlett, you need a good agent that can represent you, and I don’t believe that you need to overpay to compete with a larger down offer.

Are you being told that your higher offer will get trumped by a lower offer with a larger down payment ??

I’m sure it was a REALTOR that told you you will have to pay more to compete…

FHA and FNMA loan limits have changed, they have gone down. You can qualify for more than you want to borrow.

I hope that you are getting good advice about your loan options, but it doesn’t sound like it. You are a strong borrower, even with a low down.

I imagine that it is a REALTOR telling you that you aren’t a strong buyer ??
GIVE ME A BREAK….

I’d love the opportunity to work with you. . HLS

[HLS]

sdr, Thanks for the advice. I’ve been involved with So Cal Real Estate for over 25 years.
I’ve dealt with my share of ignorant mortgage and RE agents, there is no shortage of either.

There are some sellers that might believe that a larger down means a stronger buyer, but that is nonsense. Not all sellers are that stupid. They get their money at closing regardless of the down payment.

I can provide approvals and get loans done quickly for strong borrowers. It’s ignorance that makes people think that a larger down is a better offer.

sdr, you already mentioned that you have had buyers in escrow for ages, while I am closing loans in a couple of weeks.

Many agents are absolute idiots, as well as many mortgage people are. Get a good agent and a good mortgage person together and deals will happen quickly.

The generalizations that are thrown around mislead strong borrowers like Scarlett to believe that they need to pay a higher price that they really need to.

Scarlett, you need a good agent that can represent you, and I don’t believe that you need to overpay to compete with a larger down offer.

Are you being told that your higher offer will get trumped by a lower offer with a larger down payment ??

I’m sure it was a REALTOR that told you you will have to pay more to compete…

FHA and FNMA loan limits have changed, they have gone down. You can qualify for more than you want to borrow.

I hope that you are getting good advice about your loan options, but it doesn’t sound like it. You are a strong borrower, even with a low down.

I imagine that it is a REALTOR telling you that you aren’t a strong buyer ??
GIVE ME A BREAK….

I’d love the opportunity to work with you. . HLS

[Author]

Posts