tomorrow. My Real Estate agent is telling me that since we have not gotten an approval from the second bank we must submit a cancellation letter to cancel our contract by today because the house is supposed to close tomorrow. She is concerned that if we do not close tomorrow we might be at risk to lose our earnest money that we put down ($3,000). Does anyone know what my rights are to get that money back. I want to stick with this purchase, and I know that short sales can take months. I am fine with them holding the money, but if the bank does not approve the sale will I get my $3,000 back?
Thanks everyone!
The approval that we are waiting for is from the bank which owns the second mortgage for the current seller. We are not the ones with the second mortgage… we need their approval because they are owed money from that property that they are obviously with a short sale not going to get.
The second mortgage is for $134K. We have asked the bank to tell us what they require to sign off. Both agents as well as the lender are willing to contribute part/all of their commisions to cover an amount negotiable with the second bank… the problem is they haven’t even responded.

question # 1
if i purchase a condo via short sale ” already aproved by bank”, and the price is $100,000 and the assesed price is 200,000 does this means that the equity in the property is $100,000?

2. how long would i have to weit in order to be bable to take out equity.
is there a waiting period?

could you explain how equity works in this case?

Hello, I am hoping to get all the help/info I can get…

A few years ago my then boyfriend bought a house with his friend. They decided in Nov 2009 to short sale the house since he and I got married and we are expecting a baby. They submit a hardship letter explaining their reasons for why we needed to get rid of the house. The house was under a little over $100k. The bank approved the short sale and the house is clear from their names and has been sold, they are not responsible for the remaining about either. They had made ALL their payments on time all the way up until the house sold, so there are no DQs or missed payments from the loan they had for the house.

My questions is…Even though my husband was on that loan with someone else, will he be able to apply with me so we can get our own house? We are only looking to apply for about $300k. The short sale isnt showing on his credit (YET) but I dont know how much its going to affect his score. =\ the only reason they had done the short sale was because we got married and we found out we were pregnant. NOT because they couldnt afford the home, we just needed to get out on our own. Is there any place that will see that? so we can try to apply for a house on our own? I would really appreciate any info you have…

THANKS!

Short sale homes are a great choice if you’re after a good price, whether for your first home or an investment property. But just like anything in real estate, it always comes with a risk. That’s why a Realtor always comes in handy when you buy short sale homes. Not only do they help you manage the risk, they also guide you throughout and help you make the right decisions.

With a good Realtor on your side, you can buy short sale at the price you want and with terms you’re comfortable with. Read on for more reasons why you need a Realtor to buy short sale property today. Professional planning Short sale or not, it takes careful planning to find the perfect home. When you decide to buy short sale, it’s always followed by decisions on budget, timing, location, and several other factors.

A Realtor can help you map out the steps to Buy Short Sale property all the way to closing day, and make sure each choice you make works to your advantage. Wider range of   choices. People who buy short sale are often unsure where to start looking. Although short sales can be listed as conventional homes, not all of them are available on public listings.

Most agents have access to exclusive listings and can search public ones specifically for short sales. That way, you can cut down on search time and move on to buy short sale faster. Better negotiating because your offer has to be approved by the bank, there’s always a bit of negotiation involved when you buy short sale. Sure, you choose to buy short sale for the discount, but the bank wants to get as much as it can out of it.

Your Realtor can help you set a budget and plan out strategies so you can buy short sale at a price that works for both parties. Efficient processing Short sales typically take place within a short time frame because the seller is given a deadline for closing. That’s why people who buy short sale often have to make quick decisions and scramble to meet the dates.

With a Realtor, you can get all the paperwork done on time, avoiding unnecessary delays that can let the deal slip out of your hands. Financing assistance finally, a Realtor can help you arrange for financing to help you Buy Short Sale Property. They can help you get a pre-approval—a common requirement to buy short sale today—and help you choose a mortgage that best suits your capacities.

Most attorneys are charging $2,000 plus, to ‘help’ people in California sell their homes with a short sale. Surely, these people are already in financial trouble so why not just hire a competent realtor yourself & pay other bills.
It was my understanding that the seller does not pay the realtor.

Will the bank help out w/ this at all, or do I need to hire my own title insurance company before closing?

Experienced Realtors and Property Investors encouraged to reply.

Do you owe more than what your home is worth? Are you behind on payments and feel that you can’t afford your home anymore? Do you think that you wouldn’t be able to pay a Realtor to sell your home due to not having enough equity? These are all symptoms of being “upside down” in your home. In simple terms, your loan amount is higher than the current market value of your home. You may want to consider negotiating an Arizona short sale.

So what can be done with a situation like this in Phoenix or Arizona? A short sale might be the best solution for your needs. Many people have never heard of the term “Arizona short sale” or “Phoenix short sale”. A short sale in Arizona is when your mortgage company agrees to take a less amount owed on your home in an effort to sell the home before having to foreclose.

Most people who are “upside down” or owe more than their home is worth are left with only 2 options when they can’t afford the payment anymore. The first is foreclosure; obviously no one wants a foreclosure. Believe it or not, that bank doesn’t either. The repercussions of a foreclosure for both the homeowner and bank can be devastating. The homeowner loses a home and destroys his credit. The bank loses thousands in court costs and foreclosure expenses.

The second option is working an Arizona short sale. The advantages of doing an Arizona short sale or Phoenix short sale is coming up with a win-win solution for all parties. For example, when homeowners complete a short sale in Arizona, they have effectively stopped a foreclosure from taking place. And they have significantly lessened the damage to their credit. As far as the bank is concerned, an Arizona short sale has prevented them from repossessing a home. Repossessing a home or foreclosing on a home can cost banks tens of thousands of dollars.

Furthermore, banks are in the business of lending money, not owning homes.

So how does a homeowner qualify for doing an Arizona short sale or Phoenix short sale? This answer will vary greatly depending on the mortgage company at hand. Every bank has different policies and guidelines when negotiating Arizona short sales and Phoenix short sales. For example, some banks will require the homeowner to be 3 months behind before they will even consider allowing an Arizona short sale. Yet, other banks will allow Phoenix short sales even if the homeowner is current with mortgage payments.

Generally speaking, to do an Arizona short sale, banks will require the proof of financial hardship. This can include loss of job, divorce, overwhelming medical bills, and other various financial stressors. Furthermore, the bank will require that the home be listed with a licensed real estate agent. This is usually done to verify the value of the home. Homeowners are typically not allowed to try and negotiate and/or sell the homes themselves when doing an Arizona short sale or Phoenix short sale. In conclusion, if you feel that you can no longer afford your home, and you owe more than what it’s worth, consult with a licensed real estate agent or attorney regarding an AZ short sale.