Home Buying / Selling

You can tell a buyer she is buying a short sale as is, and she'll say yeah, yeah, but she probably won't know what As Is means.

I know this because I warn buyers over and over that short sale homes are sold As Is. Sure enough, right after the approval from the bank and subsequent home inspection, I'll get a request from the buyers for repairs. They think the bank will issue a new approval and either lower the sales price or give them an extra credit for the repairs the home needs.

By virtue of the verbiage contained in the Residential Purchase Agreement we use in California, for instance, all homes in California are sold As Is. Only short sale homes and some foreclosures are really sold As Is. Read more about as is conditions for a short sale home.

More Articles by Elizabeth Weintraub:

• Will Short Sale Banks Pay for Repairs?
  
• Easy Solutions to Common Short Sale Problems
  
• How Can Another Buyer Outbid Your Short Sale?

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

President Obama included the deed in lieu of foreclosure initiative in his HOPE for Homeowners Program and, ever since, underwater homeowners have been wondering whether a deed in lieu is right for them.

On the surface, it sounds plausible. You give the bank a deed-in-lieu and it goes away. No more threatening phone calls or letters from bank collection departments. Poof, the problem vanishes. For example, Bank of America put out a pilot program last summer that offered underwater homeowners a deed in lieu option. Plus, the bank sweetened the pot by exchanging cash for the deed in lieu. You can pretty much guess who it benefits.

Does that mean you should consider giving the bank a deed in lieu. Maybe, maybe not . . . read more about deed in lieu of foreclosure.

More Articles by Elizabeth Weintraub:

• Is Jingle Mail an Option for You?
  
• How to Get Cash for Keys
  
• Ways to Postpone an Auction

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

With so many bank-owned homes on the market, some home buyers are wondering about the differences between buying bank owned vs. a regular home.

And why wouldn't a buyer be tempted to buy a bank-owned home? The prices are attractive; plus, buyers are constantly hearing that banks are desperate to give away those homes. One of the problems with this unfounded premise is banks aren't desperate to dump inventory, not on the open market, anyway. To presume that banks will do anything to get rid of a home is magical thinking. Moreover, buyers who aren't careful or don't know what they are doing can find themselves in over their heads . . . read more about the differences between buying a Banked Owned vs. Regular Home.

More Articles by Elizabeth Weintraub:

• 8 Tips for Making REO Foreclosure Offers
  
• How to Find Bank-Owned Homes
  
• How to Buy Bank-Owned Homes

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

Many sellers automatically assume that they have to be delinquent to do a short sale.

I've heard agents express the belief as well -- that short sales are granted only to sellers who are delinquent. Not only that, but they believe the property has to be in foreclosure. That's not necessarily true. Even a HAFA short sale allows a seller to apply for the process while not yet in default. Of course, with a HAFA, foreclosure must be imminent, but that doesn't mean a seller needs to be delinquent upfront.

More Articles by Elizabeth Weintraub:

• Exactly What is a Short Sale?
  
• What Does a Short Sale Listing Agent Do?
  
• Explanation of a Standard Short Sale Procedure

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

The problem with getting a bad credit mortgage is it's expensive.

The only people making loans to people with bad credit are the guys who are charging an arm and a leg for the mortgage. They can get away with it because as long as they follow state usury laws and people are willing to take their money, it's legal. For some borrowers, those who have gone through a foreclosure or a bankruptcy, a bad credit mortgage is better than no mortgage.

If you go that route, just don't plan on sticking with the mortgage for any long period of time. Make it a short-term solution . . . read more about taking out a Bad Credit Mortgage.

More Articles by Elizabeth Weintraub:

• What is a Hard Money Loan?
  
• How to Buy a Home With Bad Credit
  
• Buying a Habitat for Humanity Home

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

Buyers don't often think about putting in a backup offer.

I suspect it's the fear of the unknown, and buyers probably think it's not worth their time. Another reason could be because a backup offer is not a sure deal so agents discourage them as well. Agents like to close transactions because that's how we get paid. If an agent is writing only one offer a month, that agent probably can't afford to wait to see if the buyer will get lucky. That agent wants the buyer lucky right now.

And lots of buyers don't want to wait, either. They want to know right now if they can buy that home . . . read more about a Backup Offer.

More Articles by Elizabeth Weintraub:

• What is a Notice to Perform?
  
• Top 5 Lowball Offer Mistakes
  
• Is it OK to Make Multiple Purchase Offers?

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

After all these years of short sales, there are still buyer's agents who ask if the seller is willing to take less than the advertised short sale price.

Not only is a listing agent prohibited from answering that question due to her fiduciary relationship with the seller, but it's a stupid question. OK, maybe stupid is too strong of a word. Perhaps ignorant is a better modifier. Or, maybe I just expect more out of a buyer's agent? If an agent doesn't understand how short sales work, then the agent has no business representing a buyer for a short sale.

More Articles by Elizabeth Weintraub:

• The Benefit to Buying a Short Sale
  
• The Standard Short Sale Procedures
  
• The Basis for Short Sale Rejection By Banks

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

In order to reduce expenses, some cash-strapped home buyers are teaming up with a friend to buy a home together as tenants in common instead of buying as a single person.

Personally, I think most single people are better off trying to qualify for a home on their own and taking on a roommate in a rental capacity rather than in a co-owner capacity. The reason is if it's your home, it's your rules. If you own a home with another person, you've got to make compromises.

Plus, taking on a roommate can help make your mortgage payment more affordable . . . read more about Roommates.

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• 10 Good Reasons Not to Buy a Home
  
• Buying a Home the Seller Rented
  
• Safety Tips for Women Home Buyers

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

I get calls from a lot of underwater sellers who ask about buying a new home before selling a short sale.

It's a perfectly reasonable question. Sellers want to know if they should buy a home while their credit is still good and before they do a short sale. Seems to make sense to a lot of people. But it's not as easy as one may think because there are basically 3 ways to buy before a short sale, two of which automatically disqualify a seller from buying.

The first thing to think about is why would a short sale lender let you do a short sale if you could qualify to buy a new home? . . . read more about Buying a New Home Before Selling a Short Sale.

More Articles by Elizabeth Weintraub:

• Do You Need a Lawyer to Do a Short Sale?
  
• Top 10 Reasons for Short Sale Failures
  
• How to Do a Bank of America Short Sale

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}

You can't put off offer acceptance or rejection. I realize that sellers would prefer to have the luxury of a little bit of time to think about an offer and ponder its significance. The amount of money a seller nets can make a huge difference and has a bearing on future plans. It's a big deal to sell a house. Sellers might need to discuss the ramifications of an offer with other family members.

But it's also a big deal to the buyer. Buyers don't want to wait very long to get an answer. The longer a buyer waits, the more anxious a buyer becomes. Plus, if a seller drags her feet, a buyer might think the seller is playing games, maybe waiting for a better offer, and that can infuriate a buyer like there is no tomorrow.

More Articles by Elizabeth Weintraub:

• What is a Backup Offer?
  
• How to Negotiate Multiple Purchase Offers
  
• Making a Good Offer on a Home

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}