There’s a house which was foreclosed in LA county on September of last year and is still bank owned according to record. How long will the bank usually hold it till it goes on sale? I pass by this property almost everyday and it’s vacant with grass and weeds growing tall.

Prospective homebuyers on a budget are looking for a fantastic deal, and purchasing property in a short sale is an attractive choice. Before you begin looking, it is essential to do research to ensure that you thoroughly comprehend the pros and cons. To begin with, what exactly is a short sale? In basic terms, it is when real estate is sold for less than the sum that the owner owes on their mortgage. Many times, the lenders will, in turn, accept this sum and forgive the owner’s outstanding debt. This course of action usually occurs to circumvent a costly and lengthy foreclosure.

Now that you know the definition, it is time to look at the positive and negative aspects of pursuing real estate in short sales. Start with the likely pros. First and foremost, you will save a great amount of money by purchasing a home for a smaller amount than its true value. Also, this will usually result in immediate equity for the buyer. In most cases, properties in short sales are in better shape than homes in foreclosures.

Begin by searching out short sale properties on the market. You can either carry out your own search online or in a variety of publications, or you can engage a real estate agent to help you find potential homes that fit your needs and match your preferences. Make sure that the property is lender-approved, and, if it is not, be prepared for the risk associated with proceeding in such circumstances. Owing to the complex nature of these types of sales, it is recommended to seek expert assistance once you’ve established a home that you are interested in buying. If you employed a real estate agent, he or she will be able to assist you.

Once you have disclosed the details of this deal with your real estate agent, it’s time to submit a purchase offer. Professional support is crucial for this step in the process in order to resolve on an appropriate price. You must also include certain documents with your proposal. Present a copy of your loan preapproval and your earnest money deposit to the lender. You may also want to set a time limit for the lender to respond. Don’t be hesitant to hire a home inspector to go over the home you are interested in buying. If the bank accepts your purchase offer and the inspection checks out, you can then finish the necessary paperwork to complete the process of buying property in a short sale.

Banks (REO sellers) only care about the bottom line (ie the final number). They don’t care about other factors such as buyer’s FICO scores (750 or 800), down payment amount (20% or 40%), or it’s the 2nd highest bid.

Do they counter few highest bidders to submit the “highest and best” offer OR they just simply take the highest bid received without even countering the rest?