Posts Tagged “Purchase”
I’m a California Real Estate Agent/Investor.My real estate office has an established relationship with Lender Clearing House that offers custom bulk Bank-Owned Real Estate (REO) portfolios ranging from $2 million and higher. I would like to purchase properties at 50% or better (3% purchase fees + 3% closing costs + 44% property value) on Single Family Residences (SFR). Most hard money lenders only handle 1 property at a time. I have found 1 lender wanting 10% down = $200K, but that’s entirely too heavy to lift by myself.
A $2M portfolio is roughly 8-14 properties in the San Fernando Valley. I need help locating a reputable lender that is willing to fund on the structure of the deal, all property will be immediately resold at 90% (est.). Can anyone help me?
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I see many listings for homes under $10,000 in my area (Cincinnati, OH) most of them are sold “as is” and require a lot of repairs some of them say lender owned and have a very low price $5-$15K I wanted to know can anyone just buy these homes for under $15K and own the property all to themselves as long as there check clears Thanks
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I am in the process of waiting to hear if the bank approved my offer. If you purchased a home from a short sale, how long did it take you to hear back from the bank??
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I’ve recently put in an offer on a short sale with a seller, we both signed the purchase agreement, iv’e signed the counter offer and we had a fully open escrow with both banks approving her short sale, she backs out the first day of escrow being open…I want this property and have spent months battling this woman…can she legally do this??? I’ve taken money out of my retirement to help pay for the down payment and have therefore taken a penalty on it…what can I do…Advice would be greatly appreciated….
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I’ve got tons of friends looking for a short sale and always tell them that these properties are not always the best deals, so buy cautiously. Besides the Multiple Listing Service listings with “Bank Approved” or “Bank Approval Required”, where can a person find a short sale property?
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The term “short sale” has been talked about much lately since the slump in the housing market, but for one who is purchasing a home the first time, it can be quite unfamiliar.
Short sales are real estate transactions that allow a buyer to buy a listed home at a remarkably reduced price. From the homeowner’s standpoint, a short sale is the most sensible way to get out of bleeding mortgage debt or impending home foreclosure. In the recent years when home prices are at their lowest, the best option for borrowers or lenders is to let go of a property at a lesser amount than what the borrower owes on it.
Consider the example of a buyer who made an 80% loan to purchase a home worth $300,000 back in 2007. So he has a mortgage of about $240,000 on that home. The housing and mortgage crisis in the past few years resulted to home values to drop significantly. In some areas, the number reaches as high as 30 to 45 percent, so the $300,000 home back in 2007 can only be worth $210,000 today.
Because the crisis is general and does not only cover the housing market, some homeowners may have lost their jobs or are getting less than what they used to make. Lenders know that because of these, most homeowners are having difficulty to sustain their mortgage obligations, so they try to come up with the best deal so they can recover what they can from a particular mortgage transaction. Lenders and mortgage companies do not need to be wedged with white elephants in their inventory.
First time home buyers are advised to work with a real estate broker or short sale specialist so they can come across great deals on homes and leave much to savings. This $300,000 home can actually be availed of for $100,000 less if you arrive at an agreement for a short sale to purchase this home. Of course if you limit your judgement on current market values, there really isn’t a significant difference since home values are down, but look forward to how much this home can be worth in 5 or 10 years when the economy improves. A short sale may actually be one of the wisest purchases you’ll make in a lifetime!
It’s a bit more complicated to enter into a short sale transaction, but just like all other mortgage arrangements, you will first need to get pre-qualified and approved for a home purchase. If you are ready with the cash for the purchase, you may buy the home outright, but most experts will advise you to take advantage of the present buyer’s market to build your credit rating. A buyer’s market simply indicates there are more homes in the market than buyers looking to buy them - that’s one factor than brings the price down. The current market is really beneficial if you are buying a home. Interest rates on mortgage loans are a lot lower, and no sub-prime loan brokers are around to lure you into sub-prime lending arrangements.
The seller’s lender also has to approve a short sale proposal you submit. Negotiations will take place between seller and buyer, and it can get complicated for a first time home buyer. That is why it is recommended that you work with a short sale specialist to get the best and most sensible purchase transaction.
Karl Hartley has been assisting home buyers find their dream homes for many years now.
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I know the short sale process is a bit longer, but we submitted an offer on an approved short sale. The bank finally counter offered and we accepted. It’s been 2 weeks and we still have not received any purchase agreement. Our lender has not heard anything either. Our “realtor” is also the listing agent and keeps telling us she should have the papers in a few days. Is this typical?
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An increasing number of individuals is presently in danger of having their properties foreclosed by their mortgage lenders. This goes to show that the mighty real estate is not spared from the recent world economic crises. In fact it’s one of the most heavily affected. Either as a buyer or as a seller, one is directly hit by the crises. Thus, like any business entity, one is in dire need of a bail-out plan to save such investment.
A handy remedy for this scenario is the real estate’s own-version of a bail-out plan the, short sale purchase.
The Short Sale Purchase mechanism works in way where the existing soon-to-be foreclosed property is sold at a lower value to an interested buyer by the property owner, with the concurrence of the mortgage lender to an interested buyer. It may sound as easy as it is. But there are some considerations to fully consummate the transaction.
The Mortgage Lender, whom the soon-to- be-foreclosed property, is under mortgaged plays a major role in this transaction. For one, it dictates at what price the property is to be sold; it, likewise, determines whether the buyer is qualified to enter such sale transaction; if indeed the buyer is qualified, it further examines whether there are available co-debtors, relative to the remaining balance of the loan mortgage value, since the property will be sold at a lower price than that of the original mortgage value; finally, it will determine whether the property in consideration is qualified for a short-sale transaction.
The property owner, on the other hand, is the initiator of the short sale transaction. At the onset, being the owner, he has to execute a HARDSHIP LETTER to the mortgage lender. Once approved by the mortgage lender, he now acts as the offeror or the seller of the property to any interested buyer. In selling the property, the property owner/seller has to ensure that all terms and conditions, including the price/value of the property should equate with what is approved by the mortgage lender.
The Short Sale Purchase is considered as an of the many easy bail-out remedies for any soon-to-be-foreclosed properties. However, one must not immediately succumb to such mechanism without proper information. Hence, it is always advisable to consult with any real estate professional prior to any engaging any of such transactions.
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