Anyone got any good advice on buying a house on a ‘short sale’.

[Bruno1949]

I know the basics. The lender owns the house and is selling it short, or at a loss, to get rid of it. There is really no room to deal as the lender holds all the cards and they are not going to fix anything. I make an offer, they take it or leave it.

The house I’m looking at is WAY under market. 1908 Colonial. It’s been foreclosed on, and empty, since Feb. and the asking price has dropped from $119,000 to $50,000. .25 acre city lot. New garage. 1,936 sq.ft. 4 bed, 2 bath. Looks to be in good shape. It’s the perfect house because it’s cosmetically the worst looking and smallest house on the block. On the same block are some $400,000 brick Colonials with brass doors and servant’s quarters!

I’m wondering why no one has picked it up yet. Seems fishy to me. Yes, I’m getting a FULL inspection before I sign anything.

I haven’t bought a house in 30 years. I’m a bit rusty. And this market is scary.

Oh yes. No mortgage. Cash. I’m retired and a mortgage would be impossible to get.

I’m not worried about tuck pointing the chimney or replacing the boiler. Those I can handle myself. I just don’t want to fall into some banker’s trap.

Any sage advice from anyone?

[Unregistered-zzz111]

dont waste money on inspection if you want it buy it you did not write a word on the area city jobs future of area the land is probably worth it. those home inspectors are not worth the money and they miss alot also the bank does not care its either you want it or not thats the price. you want it buy it you want to deal you might as well walk

[Unregistered-RocketScientist]

Selling short doesn’t really mean the bank is taking a loss. It may just be the amount short to settle the loan. They are not in the RE business and it is just easier to get the money (principle owed) and get out rather than jump thru the hoops and relist the foreclosed property at market value and deal with everything that goes with that.
You’re obviously not a DIY dummy and may have just found a real steal.

[cretodps]

Is this house listed on the MLS with a Real Estate agent? The property is call REO property by banks. You can offer any price you feel the house is worth to you. Yes the bank is in control. Now the bank does want to get this property off their books so they can lend more money. Use an Real Estate agent to help you the process.

[Bruno1949]

answered my questions. House is $8,124.98 behind in taxes. There is a builder’s lien on the property for the new garage. $18,587. The water bill is $743. Basically the house is around $78,000 plus whatever closing costs and stuff are. Ah the tricks! No wonder the listing agent never called back!

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