May 10th, 2010
We currently rent a home that is possibly heading toward foreclosure. Do you have the option to buy?
We have been told by our landlord that he is going to try to short sale the house we are currently renting. We have expressed interest in buying the property on the short sale. Is this possible? We are really hoping to purchase this home. What are the chances we will be able to if it goes into foreclosure? Do banks work with renters who are leasing the home they are foreclosing on?
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Filed under: Rent Property
A short sale is not a foreclosure, a short sale is done to prevent the seller from having a foreclosure on their record, basically the bank agrees to accept less than they are owed- they are shorted the difference.
You need to talk to a Lender to see if you qualify first.
After you find that out you can talk to a Realtor. The seller should be willing to pay the commission (banks accepting short sales will accept to pay Realtor commission up to 6%). If the seller is not willing to pay then you should. You need representation! Lots of stuff you might overlook that could cost you $$$$. For buyer only representation it should cost you anywhere from 2.5%-3%.
Tell the Realtor the situation and get a market analysis to determine a fair purchase price. Appraisals are different than Market Analysis’s: Appraisers try to verify the home is worth what the buyer and seller have agreed to, if they can they will. This is not always what the home will sell for.
Next get a Home Inspection (MUST GET ONE). This will ensure the property is up to building life/safety code and that there is no damage to the structure.
The Realtor should be contacting the bank to work out the short sale (if the Realtor is only working with you make sure they are going to do this step).
The property has been listed for.
For sale by realtor and many lenders will not permit current resident to purchase home through short sale unless the property has been.
The property has been listed for sale by realtor and many lenders will not permit current resident to purchase home.
The property has been listed for sale unless the property has been listed for sale by realtor and many lenders will not permit.