Online House Hunting

Buying a house that is on short sale?

My family was house hunting and we saw this house that we would like to buy becuase it was such a deal. But the thing is, it's a home that is a short sale. From my understanding the bank hasn't even approve the selling price. Is buying a short sale even worth my time? The home as a mortgage balance of 550,000 and the listed price is 350,000 subject to lender to approve. What's the real deal with these short sales?

Public Comments

1. Just what you see, either the seller pays the extra, or the bank eats the balance. Good deal for the buyer.
2. I can only tell you about short sales in orange co CA because every bank, state, real estate market condition is different but..... If it seems to good to be true it probably is. Your realtor needs to find out exactly how much is owed and how many banks are involved. If the first and second trust deed are with the same bank then you have a better shot at getting the home sold as a short sale. In orange county only 1 in 10 short sales actually close so buyer beware. Short sales are indicators of preforclosures. If this home is the one for you and your family then I would advise you to fight for it but arm yourself with as much knowledge as possible about the exsisting mortgage/mortgagors. Also know this could be an extremely long timeline. Make sure the title is cloud free and make sure your realtor gets a "permission to speak" from the sellers. That way the banks are attacked on both ends and the lines of comunication are always flowing. I have noticed short sales in OC have crazy pricing in order to have multiple offers come in which drive the price up. Not sure but I would do all your homework and then if you move forward be prepared for a journey cause it may be a bumpy road ahead but if you close the deal you will be ahead in more ways then just getting a good deal! Good Luck!