short sale advise

[John S. Rabi]

quote:

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Originally posted by adias
Ok, lets assume you make and offer and it gets accepted. Then you do the inspection and results are satisfactory and finances are ready to go. Then you patiently wait for the other side to get their paperwork in place.

I am assuming the final walk-through is critically important in this scenario since the lag between initial inspection and possession of premises is months down the road?

Also what if the premises has pre-existing tenants who are on a month-to-month lease and you get the house and tenants at a bargain price!!! What steps are advisable to protect yourself?

Finally, what is the point of no return; at what point can you change your mind and walk away from the deal? (six months from now anything can happen)

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Gosh, that is EXACTLY why I said make sure you have an agent who knows short sales inside out! Your offer should be written in a way that all contingencies will start AFTER the short sale is approved, and not after the seller accepted your offer! The Final Walk Through is always important, however, you do not have any bite with the bank, they will not fix anything, and the seller probably will not care, so you should have a final walk through cancel cause. Tenants on a month-to-month lease have to be given a 45-day notice to vacate. If you want to take them over you will need to negotiate a new lease with them. Also note that if the tenants are mentioned anywhere in your contract than your mortgage rate will be higher and the property will be considered an investment property.


Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
http://www.JohnRabi.com
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