Etiquette Hell

A Civil World. Off-topic discussions on a variety of topics. Guests, register for forum membership to see all the boards. => Time For a Coffee Break! => Topic started by: MommyPenguin on January 02, 2011, 08:04:12 AM

Title: Short sale?
Post by: MommyPenguin on January 02, 2011, 08:04:12 AM
Has anybody ever bought a house through a short sale?  What was your experience?

My husband and I are really tempted by a house that's going for a great price, in a great area.  It's a short sale.  We have plenty of time, so the delay isn't an issue.  Just wondering if anybody has done it, how long it took, whether you were happy with it, etc.
Title: Re: Short sale?
Post by: Where's the Quiet? on January 02, 2011, 08:35:03 AM
We tried to buy a short sale last spring. The house we put an offer on had two lienholders on it so we had to have the offer accepted by three people...the seller, first lienholder and second lienholder. We ended up competing with another potential buyer and offered $5K over the asking price. Our offer was accepted by the seller and the first lienholder within 3 weeks, but the second lienholder never answered. Three months after our offer was accepted by the seller, I googled the address and found out it was being auctioned off two weeks from then! I don't think our experience was the norm. Some banks are really quick (WF/Wachovia average 45 days from offer acceptance to close) while some are still taking 3 months. As long as your agent and the seller's agent are experienced in short sales the process should go relatively smoothly. Good luck!
Title: Re: Short sale?
Post by: MrsJWine on January 02, 2011, 10:45:12 AM
Has anybody ever bought a house through a short sale?  What was your experience?

My husband and I are really tempted by a house that's going for a great price, in a great area.  It's a short sale.  We have plenty of time, so the delay isn't an issue.  Just wondering if anybody has done it, how long it took, whether you were happy with it, etc.

We haven't, but I have heard that lately it's not as much of a red flag as it used to be.  In this market, LOTS of people are doing it, even people who have taken good care of their homes.
Title: Re: Short sale?
Post by: sparksals on January 02, 2011, 01:20:30 PM
I have never bought one and probably wouldn't.  The reason being is it does take a long time since the bank also has to approve the sale.  One thing you may want get your realtor to ask if the selling price was approved by the bank when it was listed.  So many people list their shortsale and then when they do get an offer, the bank says no, our minimum is offer + XXX Dollars. 
 

You can have an inspection, but you do take a greater risk buying a short sale.  If they haven't been able to pay the mortgage, chances are they haven't been able to pay upkeep on the house.  There could be some big maintenance problems.
Title: Re: Short sale?
Post by: megswsu on January 02, 2011, 01:32:43 PM
Well if you have time to wait, then go for it. Just be prepared to possibly sign, and resign and resign, etc. I sold our condo 2 years ago through a short sale and it took forever. I can't tell you how many times I had to resign paperwork b/c the banks needed it updated, whatever. It got to be ridiculous, and the process took almost 5 months. However a friend of mine sold her home in a short sale over the fall and it didn't take as long as mine did. Maybe 2-3 months? Can't remember. But I think b/c short sales are becoming more common, relators/bankers/etc. seem to know what to do and how to stay ahead of things so the process doesn't take quite as long as it used to. Of course it all depends on the house and what's owed, the banks, etc. Hopefully it won't take too long though!
Title: Re: Short sale?
Post by: shhh its me on January 02, 2011, 01:51:45 PM
I have never bought one and probably wouldn't.  The reason being is it does take a long time since the bank also has to approve the sale.  One thing you may want get your realtor to ask if the selling price was approved by the bank when it was listed.  So many people list their shortsale and then when they do get an offer, the bank says no, our minimum is offer + XXX Dollars. 
 

You can have an inspection, but you do take a greater risk buying a short sale.  If they haven't been able to pay the mortgage, chances are they haven't been able to pay upkeep on the house.  There could be some big maintenance problems.
[/b]

This is a valid point but in the current market I'd be less concerned then 5 years ago. People are much less motivated to try to keep their homes if they owe $200,000 and their home is worth $90,000 then in the past when it was more likely they owed $200,000 on a house that was worth $210,000. That doesn't change the fact people won't put a new roof on a house that they're about to lose , just that rather then struggle with payment for years they are more likely to be willing to walk away sooner. 

Get an inspection , be aware it may take months and know the deal could fall apart.  I would also make sure to be clear when your offer expired.
Title: Re: Short sale?
Post by: mbbored on January 02, 2011, 02:31:56 PM
Avoid houses with Bank of America owned mortgages.  They're the worst at short sales.  I tried to buy one, BoA never responded to any communication from my or the seller's agents.  I ended up buying another property down the road and now that place is in foreclosure, and BoA is still dragging their feet.
Title: Re: Short sale?
Post by: TinyVulgarUnicorn on January 02, 2011, 03:06:05 PM
Actually, I remember reading an article in our newspaper about how short sales are becoming increasingly harder to do because there is such a huge market of them right now that banks are having a hard time processing them.  Here's the article if you're interested:  http://www.signonsandiego.com/news/2009/jun/07/1h07short184053-short-sales-stymied-complications-/

Title: Re: Short sale?
Post by: AfleetAlex on January 23, 2013, 02:03:41 PM
I hope no one minds if I revive this topic, as I'm going through the same thing and could use some advice on the steps involved. A negotiator has been assigned and the sellers accepted my offer and have moved out of state (so they won't be moving back in) but I can't seem to get an answer on what happens next and how soon it could happen. My realtor isn't being as helpful as I had hoped. (She did warn me it could take 6-8 months, and we're at 5 months already.)
Title: Re: Short sale?
Post by: JenJay on January 23, 2013, 02:17:40 PM
The seller accepting your offer is just a formality, it's the bank that owns the house that gets to decide and therein lies the holdup. DH and I had to list our house as a short sale when we moved out of state for DH's job. The buyers offered a reasonable price, we accepted, the bank tentatively approved it, and it still took a couple more months to close. There wasn't much communication from our realtor because there was nothing for him to report, it's a waiting game with the bank. Hang in there!  :-\
Title: Re: Short sale?
Post by: wheeitsme on January 23, 2013, 02:22:10 PM
Let's see if I remember... (we had a really good experience)...

I believe that both the owners and the bank have to accept your offer.  It was the bank that took the longest.  It sounds like the owners have accepted, but the hold up is the bank accepting the offer.  It could be for any number of reasons.  Has the bank received the offer?  Did it go to the right department in the bank?  Is it just sitting on the right desk, but the bank worker hasn't got around to it?

Perhaps you could ask your realtor to check with the bank?

(oops, answered at the same time!)  ;)
Title: Re: Short sale?
Post by: AfleetAlex on January 23, 2013, 02:40:03 PM
Thanks for responding! The owners have accepted, although I'm partially expecting the bank to counter, and I have some wiggle room.

The last thing I heard was that a negotiator was assigned and then, when the owners took the job out of state just recently, the bank requested all their updated financials. (They had first moved to another city in the state; the house has been empty all this time but was winterized.)

When I ask for a time frame, my realtor encourages me to look at other houses, even though I've already said I'm willing to look at houses I like in the meantime. I don't think she wants to wait for the process to go through, honestly.
Title: Re: Short sale?
Post by: wheeitsme on January 23, 2013, 03:11:51 PM
Thanks for responding! The owners have accepted, although I'm partially expecting the bank to counter, and I have some wiggle room.

The last thing I heard was that a negotiator was assigned and then, when the owners took the job out of state just recently, the bank requested all their updated financials. (They had first moved to another city in the state; the house has been empty all this time but was winterized.)

When I ask for a time frame, my realtor encourages me to look at other houses, even though I've already said I'm willing to look at houses I like in the meantime. I don't think she wants to wait for the process to go through, honestly.

With our house, it was the bank that came back with a counter-offer.  But they did so fairly quickly.

...I'm wondering if the "new job out of state" is going to put a hitch in the proceedings.  Because short sales are usually due to financial difficulties on the owner's part.
Title: Re: Short sale?
Post by: AfleetAlex on January 23, 2013, 03:21:07 PM
I was trying to figure that out myself, since the sellers had first taken a job about an hour away, had to send in all those financials, etc, and then just recently took one literally all the way across the country, so those financials had to be sent in as well. My realtor couldn't say how much that would delay things, however.

I assume the negotiator would be the one who might determine whether the bank should counter-offer? I feel like I'm waiting and waiting for nothing to happen!   :)
Title: Re: Short sale?
Post by: Spriggy on January 23, 2013, 03:44:31 PM
I have never purchased a short-sale.  But I have been on the other end - I was the short-saler.

I had two lien holders on my property (I did an 80%/20% loan).  The entire process took 3 months - but that was because I was very diligent in calling both lien holders on a repeated (i.e. daily) basis.

Each lien holder need about 15 - 20 documents (paycheck stubs, bank statements, letter of why I needed a short sale, tax files, etc.).  Of course all this information had to be faxed to a generic number, so I ended sending this information multiple times because it always "wasn't in the file".  And they always needed the most current information, so I kept having to update the documents I had sent in.

The first lien holder really couldn't approve anything until the second lien holder approved their portion of the deal.  (If you have two loans a portion of the sale price goes to the first lien and a SMALL portion goes to the second lien).  Once the second lien holder approved the deal, the first lien holder approved the deal in a matter of hours. 

Of course my deal got approved by the lien holders at 4:45 PM on a Friday afternoon (8/27/2010).  Per the agreement I had signed with the purchaser originally, I had to have this deal closed by on Tuesday morning (8/31/2010) - so I manic moving session that weekend.  It is the closest I have ever come to a nervous breakdown.

So - lessons from my story:

1)  Never do an 80%/20% loan - causes too many headaches!!
2)  If you are the purchaser of a short sale - be patient - the seller probably is trying to get the deal accomplished as soon as possible.  But it is usually out of their hands.
3)  If you are the purchaser, do put a deadline in the agreement (or talk to your agent about it).  If my deal hadn't been approved by 8/31/2010 my purchaser could have walked away from the deal with no recourse.  And I would have been back a step one of finding a buyer.
Title: Re: Short sale?
Post by: jpcher on January 23, 2013, 05:16:04 PM
Silly question -- what is a short sale?
Title: Re: Short sale?
Post by: JenJay on January 23, 2013, 05:18:11 PM
It's when your mortgage on a home is more than the home's current value. When you sell it you come up short.  ;)
Title: Re: Short sale?
Post by: jpcher on January 23, 2013, 05:22:23 PM
It's when your mortgage on a home is more than the home's current value. When you sell it you come up short.  ;)

Oh. Okay. Thanks . . . but when you buy it are you purchasing at current value?

And, then, does the current homeowner still owe gobs of money?
Title: Re: Short sale?
Post by: JenJay on January 23, 2013, 05:26:31 PM
It's when your mortgage on a home is more than the home's current value. When you sell it you come up short.  ;)

Oh. Okay. Thanks . . . but when you buy it are you purchasing at current value?

And, then, does the current homeowner still owe gobs of money?

The buyer pays current value, the seller walks away with bruised credit, and the bank takes the loss which is why they have the final say. It used to be that the difference was considered "forgiven debt" and taxed as income but when short sales and foreclosures started happening more frequently a few years ago that was amended (temporarily) so that doesn't happen now. I believe this was in conjunction with part of the bank bailouts so that the banks did recoup that money, just not from the seller. That's how our real estate agent explained it, anyway.
Title: Re: Short sale?
Post by: Piratelvr1121 on January 23, 2013, 05:31:41 PM
A friend is having to do a short sale due to getting a divorce.  Her stbx is supposed to move out soon, in the next month or so but he's delusional and seems to think they can still make it work so poor woman's going to have a hard time making him move out.  (neither of them can really afford to get an apartment and pay mortgage on the house). 

I think she put the house on sale early in the fall and no one's even showed interest. I even gave her a St. Joseph Home Selling Kit cause hey, can't hurt, right? She said she might take it off the market and try again or just get a roommate. 
Title: Re: Short sale?
Post by: Shakira on January 24, 2013, 05:49:58 AM
We bought a short sale just over a year ago. We found the house in May, offered the asking price, and finally closed just before Labor Day. Our realtor was super helpful and kept us very updated. She said our experience was pretty standard, although to us it felt like forever! We had to keep faxing tons of paperwork to different places and wait for new people to sign off on it.

In the end we got a great house for a great price in the exact area we wanted so it was worth it. If you don't mind the wait then it's a good idea to go for it.
Title: Re: Short sale?
Post by: jaxsue on January 24, 2013, 06:01:22 AM
I looked at a few short sales when I was house hunting 1.5 yrs ago. Pure frustration. I'd have an appt to see a house (the drive between my apt and prospective town was over an hr each way), only to find out that the owners had changed their minds and wouldn't let me in.

After several months of this and other frustrations, I gave up. Turned out for the best, though. I ended up buying a house that I adore in the neighborhood I wanted!

Edited to add: if you have time and lots of patience, then a short sale might be worth going for. I have to stress, LOTS of patience! It's often not the owners who make it difficult, but the banks.
Title: Re: Short sale?
Post by: Piratelvr1121 on January 24, 2013, 08:14:41 AM
My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.
Title: Re: Short sale?
Post by: MommyPenguin on January 24, 2013, 08:18:05 AM
The short sale we were looking at is still on the market, price slowly dropping.  My husband says the original asking price when we first saw it was *way* too high for the house's value.  The price still needs to drop a good way before the house will be priced at a level that my husband thinks is worth it.
Title: Re: Short sale?
Post by: JenJay on January 24, 2013, 09:05:56 AM
The short sale we were looking at is still on the market, price slowly dropping.  My husband says the original asking price when we first saw it was *way* too high for the house's value.  The price still needs to drop a good way before the house will be priced at a level that my husband thinks is worth it.

The bank usually requires the seller to initially list it for what is still owed and then slowly whittle it down to market value. If I recall correctly we had to leave ours listed at the higher price for 2 full months before we could drop it $10k, then we were able to drop it in $10k incriments every 2 weeks until it got down to fair market value. It was incredibly frustrating, as we'd had an assessment done just 6 months prior to the move (before DH applied for the promotion/transfer) and we were tight but okay. It dropped very suddenly between then and when he was selected. Go figure.  :-\
Title: Re: Short sale?
Post by: MommyPenguin on January 24, 2013, 09:14:11 AM
That looks similar to the pattern we're seeing, but with a slightly faster rate.  It's dropped 60k so far at about 10k every 3 weeks.  Still got another 40k to go untili it's what my husband says he thinks it's worth, though.  And it's about 80k above assessed value.  (Expensive area.)
Title: Re: Short sale?
Post by: stitchygreyanonymouse on January 24, 2013, 09:25:39 AM
It's when your mortgage on a home is more than the home's current value. When you sell it you come up short.  ;)

Oh. Okay. Thanks . . . but when you buy it are you purchasing at current value?

And, then, does the current homeowner still owe gobs of money?

The buyer pays current value, the seller walks away with bruised credit, and the bank takes the loss which is why they have the final say. It used to be that the difference was considered "forgiven debt" and taxed as income but when short sales and foreclosures started happening more frequently a few years ago that was amended (temporarily) so that doesn't happen now. I believe this was in conjunction with part of the bank bailouts so that the banks did recoup that money, just not from the seller. That's how our real estate agent explained it, anyway.

Depending on how short the short sale is, the seller does come away with some debt on occasion.

My friend went through it when she divorced. Because of the divorce agreement, she and her XH had to split the debt evenly, but he has a very minuscule (sometimes non-existent) income, so that made the sale even more difficult, because to get it to a reasonable market value sale, the bank wasn’t willing to lose that much, and the XH wasn’t willing to take on his share of the debt. It took over a year of being on the market, dropping the price as the bank would allow, and his finally agreeing to cover his half of the debt before they sold… then it took about 6 months to actually have the sale go through.
Title: Re: Short sale?
Post by: jaxsue on January 24, 2013, 11:11:00 AM
My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.
Title: Re: Short sale?
Post by: JenJay on January 24, 2013, 11:24:40 AM
It's when your mortgage on a home is more than the home's current value. When you sell it you come up short.  ;)

Oh. Okay. Thanks . . . but when you buy it are you purchasing at current value?

And, then, does the current homeowner still owe gobs of money?

The buyer pays current value, the seller walks away with bruised credit, and the bank takes the loss which is why they have the final say. It used to be that the difference was considered "forgiven debt" and taxed as income but when short sales and foreclosures started happening more frequently a few years ago that was amended (temporarily) so that doesn't happen now. I believe this was in conjunction with part of the bank bailouts so that the banks did recoup that money, just not from the seller. That's how our real estate agent explained it, anyway.

Depending on how short the short sale is, the seller does come away with some debt on occasion.

My friend went through it when she divorced. Because of the divorce agreement, she and her XH had to split the debt evenly, but he has a very minuscule (sometimes non-existent) income, so that made the sale even more difficult, because to get it to a reasonable market value sale, the bank wasn’t willing to lose that much, and the XH wasn’t willing to take on his share of the debt. It took over a year of being on the market, dropping the price as the bank would allow, and his finally agreeing to cover his half of the debt before they sold… then it took about 6 months to actually have the sale go through.

They may have agreed to cover the debt so as not to have their credit completely ruined (ours dropped from the high 830s to about 550!! Fortunately it's back up to about 750 and climbing) or it may have been before the bank bailout/non-taxed forgiveness of debt thing. It's been just over a year since we closed and, if I recall what my agent said, the tax amendment was for years 2007-2012 and then due to expire. Possibly it varies by state, which really stinks for people in those states.  :-\

I just did some googling and it looks like it has been extended until 12/31/13
http://www.huffingtonpost.com/mobileweb/anna-cuevas/mortgage-debt-relief-act_b_2427431.html
Title: Re: Short sale?
Post by: AfleetAlex on January 24, 2013, 12:26:18 PM
For those of you who have been through this, can you provide some additional perspective?

- When I first spotted the house online, it was listed as a short sale. However, I found out after expressing interest that (apparently) the owners had listed it as a short sale before the bank approved a short sale. The bank tried to do loan modification with the couple, which added to the delay. As they're obviously not moving back in, it sounds like we're past that part. And as far as I'm aware, I'm the first and only offer on the house, as the listing was removed (from online) after the sellers accepted my offer. Any thoughts on what this means for me?

- I have not been asked to do anything other than provide a letter from my mortgage company/credit union about what I could afford. Should I have been asked for more materials by now?

- The mortgage company/credit union contact provided the letter saying I could afford about $2,000 more than I offered for the house (which was about $7,000 below asking). However, I do have more wiggle room than that (and my realtor says that's 'part of the game' so to speak). Will that help or hurt me when it comes to the sellers' bank?
Title: Re: Short sale?
Post by: wolfie on January 24, 2013, 12:42:36 PM
A lot of this isn't going to involve you. The bank wants to recoup as much money as they can. Right now the other couple are obligated to pay them that money, and when you buy the house you will have a new contract with a new price. So the only way the bank is going to get the missing money is by going after that couple. So the couple will need to provide a bunch of information on why the bank should be willing to just let them walk away from the debt. You shouldn't need to provide more then you would if this was a normal sale - but you might need to provide it more often since paperwork getting lost seems like it happens a lot in these cases.
Title: Re: Short sale?
Post by: AfleetAlex on January 24, 2013, 12:52:16 PM
Thanks for that; I'll be prepared to supply paperwork a couple of times if need be.  :)

This is the first house I've ever purchased, so I'm learning as I go!
Title: Re: Short sale?
Post by: Piratelvr1121 on January 24, 2013, 01:16:31 PM
My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.

It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that. 
Title: Re: Short sale?
Post by: otterwoman on January 24, 2013, 01:37:12 PM
My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.
It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that.

It may be that these people are looking at houses that are at the very top of their price range, so they have no wiggle room for paint and new floors. That is their failing; I would set aside money for upgrades and such. Their real estate agent could be guiding them to these too expensive homes. Or they might not have the time to do renovations.
Title: Re: Short sale?
Post by: Piratelvr1121 on January 24, 2013, 01:51:19 PM
That is too bad, as the fun *sorta* of home owning is that the work never seems to stop! We still haven't done everything with this house that we'd like to.  I want to paint my middle son's room, the covering over of the 70's wallpaper in the living room took us 8 months to get done and there's still some in the hallways, office and stairwell that I'd like to cover up and we've been here 3 years.

Oh and the carpet in our living room is stained, pulling apart, the carpet in the master bedroom is a bright rosy pink, while the other two bedrooms have carpet that have some lovely 70's shades of harvest gold and avocado. :P One of these days I'll talk DH into using some of our tax $ on redoing all the carpet in those rooms, once we have other bills paid off.  He wants to redo the kitchen, but I won't let him, cause I love it. :)

The house has great bones though, and is in a great location (across from ice cream store, less than a block from the pediatrician who will do stitches and casts so you don't have to go to the ER.  Though we haven't had to do that yet. *knocking on wood, spitting and turning in circles*
Title: Re: Short sale?
Post by: JenJay on January 24, 2013, 01:58:26 PM
My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.

It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that.

It was noted in our listing that one of the features of the house was that the master bed and bath were on the main floor and the other 3 bedrooms were upstairs. This one couple came to see it and the lady whined constantly about the master being downstairs. Hello? Did you not read the listing? She also wanted us to pay to replace ALL of the carpet throughout the entire house because we have cats. Do our cats pee on the carpet? No. Is she allergic to cats? No. She simply doesn't like cats and didn't think she should be subjected to carpets where cats have been. Ever.

(Normally the seller is gone when a prospective buyer comes to see a house. In this case we were literally in the middle of packing for the move and asked if she could wait a day so it would be vacant but she insisted she had to see the house right then. She complained that it was hard to get a "feel" for the house with so many boxes everywhere. LOL)
Title: Re: Short sale?
Post by: AfleetAlex on January 24, 2013, 01:59:54 PM
I'm very much looking forward to painting, picking out my own carpeting, getting furniture that was not a hand-me-down (nothing wrong with that, but I'm looking forward to choosing my own style). That's part of the fun!

I've already planned out what I'm doing in many of the rooms in the house I don't own yet.  ;D
Title: Re: Short sale?
Post by: DavidH on January 24, 2013, 06:39:39 PM
The only advice I can offer is about buying a house needing work.  Where I am, many people don't want to deal with that, so you can get some great deals, but you still have to be able to do the work.

Doing work often requires cash, so make sure you'll have enough after buying the house to pay for it.  Although the bank may not be willing to do repairs, an inspection to help you identify what will need to be done can be useful to help you make a decision on how much to offer.  It's also helpful to divide work into needs to be done now (like fix a leaking roof) and would be nice to have done (like changing a paint color you don't like or remodeling a functional but ugly kitchen).  Finally, if you decide to take on a house needing work, be realistic about not only the budget, but the time you need to invest. Just because you can pay the carpenter doesn't mean you have time to be home to let them in and all of that kind of thing. 
Title: Re: Short sale?
Post by: MommyPenguin on January 24, 2013, 07:20:29 PM
I know that I *should* look at the bones of the house, myself, but I'm not sure I'll be able to do that next time.  The house we're currently living in supposedly has good bones.  However, the work is taking forever.  Granted, my husband is working on his thesis at the same time.  But we've been using the bathtub to wash our hands for over a year because there's no sink.  In the one bathroom.  The other bathroom has nothing at all... no toilet or sink, no tile floor, etc.  I'm just really, really tired living in a home that is under renovation.  Our next house needs to be completely finished, or at least only need very small, quick repairs.  No "needs TLC" house for me!  And we'll only be there 4 years, so it's not like I can figure on getting the house how we want it "someday."  (I wouldn't count things like painting and carpet, which are quick short-term fixes, in that.  I'm thinking more like a bathroom needing retiling, a kitchen needing new cabinets, etc.)
Title: Re: Short sale?
Post by: jaxsue on January 24, 2013, 11:40:17 PM
I know that I *should* look at the bones of the house, myself, but I'm not sure I'll be able to do that next time.  The house we're currently living in supposedly has good bones.  However, the work is taking forever.  Granted, my husband is working on his thesis at the same time.  But we've been using the bathtub to wash our hands for over a year because there's no sink.  In the one bathroom.  The other bathroom has nothing at all... no toilet or sink, no tile floor, etc.  I'm just really, really tired living in a home that is under renovation.  Our next house needs to be completely finished, or at least only need very small, quick repairs.  No "needs TLC" house for me!  And we'll only be there 4 years, so it's not like I can figure on getting the house how we want it "someday."  (I wouldn't count things like painting and carpet, which are quick short-term fixes, in that.  I'm thinking more like a bathroom needing retiling, a kitchen needing new cabinets, etc.)

My definition of "good bones" means that "needs TLC" is not part of the package. New paint/ripping up carpeting is no big deal. Having to gut the house, big deal. YMMV.

I bought my mid-century house 1.5 yrs ago. I love its vibes. There is a lot of original stuff that I like, and except for the kitchen it was never remuddled (term I use for ugly redos).

I would go crazy living in limbo while rooms remained unfinished.
Title: Re: Short sale?
Post by: AfleetAlex on January 25, 2013, 10:29:53 AM
The house I'm looking at appears to have good bones and only needs some minor repairs and cosmetic changes in the short term, so I've budgeted in having the hardwood floors refinished and carpeting and painting/wallpaper removal done. The roof looks good too. Obviously I'm having a home inspection, pest inspection and radon inspection done before signing anything.

One of the things I realized I needed to think about were all those purchases a homeowner must have that an apartment dweller probably doesn't need: a lawn mower, hoses, water softener salt, rake etc. A lot of them are relatively inexpensive but they can add up.

And I also need some new furniture, but I'm in the 'cross that bridge when we come to it' mindset on that!
Title: Re: Short sale?
Post by: JenJay on January 25, 2013, 10:36:12 AM
Very true! Window coverings, lighting fixtures, pet doors, landscaping, etc. All little things you're stuck with when you rent that you get to change when you buy, which is awesome, but not cheap.
Title: Re: Short sale?
Post by: DavidH on January 25, 2013, 11:23:14 AM
I know the home shows portray people moving into a new house with new furniture and everything, but many people can't afford the house, updates, and furniture at one time.  It also isn't a bad idea to move in a wait a little while to see what you really want after living in the space.

There are a whole lot of random things as you say, mowers, hoses, gardening supplies, fertilizer, blinds, snow shovel, etc. For things like a mower, craigslist is a good source of inexpensive used ones, for binds, you can get very inexpensive temporary items at a home improvement store while you order or save for exactly what you want. 

It is very easy to spend $500 or $1000 at a home improvement store the first time you buy a house on things you never really though about before. 
Title: Re: Short sale?
Post by: magicdomino on January 25, 2013, 11:32:35 AM
Very true! Window coverings, lighting fixtures, pet doors, landscaping, etc. All little things you're stuck with when you rent that you get to change when you buy, which is awesome, but not cheap.

Even a brand new house can run up quite a bill.  At least a used house will come with some landscaping and perhaps some window treatments.  Even if they aren't to your taste, it gives you something to work with.  And then there are the future repairs, both large and small. 

That's okay.  A house may be a money pit, but it is your very own money pit.   :)

One small tip:  Leave off the landscaping for a year, aside from mowing the lawn and removing any dangerous trees.  The house bought in late summer may have an excellent display of spring bulbs; the bush that looks dead in April/May may be a beautiful blooming crepe myrtle in August.
Title: Re: Short sale?
Post by: AfleetAlex on January 25, 2013, 12:34:12 PM
Very true, although since I made the offer in late August, I've seen it through summer, fall and winter!  ;D

I'm not going to go crazy on furniture right away; however, I've saved up to replace certain very worn out pieces that I don't even want to set foot in the new space!
Title: Re: Short sale?
Post by: Piratelvr1121 on January 25, 2013, 04:24:50 PM
Our house has good bones. I love the woodwork that is part of the house, as it's very typical of a 1920's craftsman bungalow and it did come with window treatments, some of which I am going to replace.  The windows that got replaced weren't broken, just very, very outdated.  They even had the original pulleys on them, which I did hold onto. 

We often joke that there is not a straight line in this house though, and is one of the quirks of an older home.
Title: Re: Short sale?
Post by: AfleetAlex on February 13, 2013, 01:47:38 PM
Update: got word this week that the appraisal has been ordered. How long can that take, just out of curiosity? Also, I'm expecting that if the bank is going to counter-offer, it will do that after the appraisal. Am I right ... or confused?  ;D
Title: Re: Short sale?
Post by: siamesecat2965 on February 13, 2013, 02:24:34 PM
Our house has good bones. I love the woodwork that is part of the house, as it's very typical of a 1920's craftsman bungalow and it did come with window treatments, some of which I am going to replace.  The windows that got replaced weren't broken, just very, very outdated.  They even had the original pulleys on them, which I did hold onto. 

We often joke that there is not a straight line in this house though, and is one of the quirks of an older home.

I'm so jealous!  I LOVE this style of house. My parent's house in NJ where I grew up was a craftsman bungelow style, built in 1917. Sadly, the idjit who bought it tore it down completely, and built a new, behind-ugly mini-mcmansion there. 

I had the last laugh though; he only had permits to remodel, NOT completely demolish and start over. But he claimed it was necessary as there was "damage". Town said "oh no, you don't have the right permits, so you must stop work, apply for the proper permit, get it approved and THEN, if you are, you can begin agian"

And since the lot was so small, he couldn't expand out at all, only up, so the new house (I went to the open house) was smooshed into the lot. and a two car garage had become one. It still sold for $1.5million as it was within walking distance to the train station, and commute to NYC.
Title: Re: Short sale?
Post by: stitchygreyanonymouse on February 13, 2013, 02:30:46 PM
It makes me so sad to visit my SO’s family in NJ. They live in a town that has some drop-dead gorgeous old homes. And right next to these gorgeous old homes are lots that used to have pretty old homes that needed maybe a little reno that are now instead ugly new homes.
Title: Re: Short sale?
Post by: AfleetAlex on March 03, 2013, 01:13:01 PM
I have an etiquette/procedural question here.

BG/The appraisal was ordered and completed a couple of weeks ago. My realtor has been trying to find out the results, but somebody at the other end didn't attach the appraisal to the file so last I and my realtor knew they were trying to find it. And then, nothing. end/BG

Some people have said casually that I should be calling the bank to find out what's going on. Is that advisable/polite (as in, considered part of business?) I feel like I'm constantly bugging my realtor to find out what's going on, but I don't know if it's considered polite/done for me to circumvent her, the seller's realtor etc and go straight to the bank. It's not because I don't trust my realtor, it's because I think somebody at the bank isn't quite doing their job and I have more at stake to 'pester' them than anybody else does. Plus all this waiting is ramping up my anxiety, which is never good.

Can Ehellions advise me on the protocol here?