Tuesday, February 25, 2014

Buying a Short Sale

When we began looking for our new home, we had no intentions of focusing on a short sale or foreclosure, but it didn't take long to realize how great of an idea it would be. We had the perfect situation. We were renting a comfortable, nice home in a great neighborhood, we had the down payment saved, and we felt no rush to find a home or move. We were ready to find the perfect house, even if it meant waiting months to hear whether or not we got it. We also realized that the homes we were most excited about, just happened to be short sales. We found quite a few right off the bat, that we wanted to give a shot. The first house we made an offer on-we were out-bid. But were given "second place" position-meaning, if the first buyer's offer fell through, we would be next in line.

The second was a beautiful home, in the perfect neighborhood, but was a rental for years, so it didn't have the best up-keep, and needed lots of updating. We decided to put an offer in on that one as well. Our plan was to keep looking at any other homes that we liked, while waiting for either of the short sales to come back. We thought that news from the bank (one way or another), would end up being our timeline for finding something else. We thought we would have tons of time! Short sales usually take months. We had three weeks. The bank accepted our offer on the second home almost immediately (for a short sale), which floored us, our Realtor, and the seller's Realtor. No one expected that.

When we found out, we panicked a bit. We had just seen another home-not a short sale-earlier that night, and were trying to decide between the two. Luckily, the offer came on a Friday, so we were able to give ourselves a couple of days to figure it out. We decided, too quickly, to put an offer in on the new house. The second we signed the paperwork, I panicked. I knew instantly, that I didn't want the offer to go through. After letting Joe know how I was feeling, we quickly contacted our wonderful, patient Realtor, and rescinded our offer. I felt horrible, but I knew that it wasn't the house for our family. I'm so glad that I spoke up!

We thought long and hard that weekend. We came out knowing that the short sale home was the one for us. We waited for the inspection, which came back with a few issues, but we had a plan. We asked for the bank to lower our price based on the repairs needed. Once again, we were told that dealing with a bank might be difficult, and the seller's Realtor was sure that they wouldn't accept our new offer. Three days later, we got news that the bank had accepted it. Yay! Once again, we waited for the appraisal to come back. Today it did. Once again, great news!

It has been six months since we moved into our rental, and here we are packing again. Short Sales are nothing to be afraid of. Although I know that our situation is not at all the norm, it is possible. Short Sales can offer buyers a wonderful home, for an even better value. This time, the move will be far less emotional, more exciting, and we can't wait to make our new house, our home!

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