renting a short sale from sellers
The 1st
mortgage holder signed off on our offer (almost immediately because I
guess they took the full amount owed to them). However, the 2nd
mortgage holder (Chase) hasn't yet. They said that the BPO would be received no later than 15 days, but they completed the BPO nearly 4 weeks
ago, but it has not been entered yet. I have no idea what's happened to it.
We were able to extend our current short-term lease until the end of June, but we're
beginning to get worried that we won't have things settled even in time
to move out by then. Also, we need to be in the new school district
because my son has been accepted into a special program -- he may lose
his spot if we're not over there by July-ish.
I had the idea of working with the seller to rent the home from her until the final approval is made -- is that even possible? I suspect the seller would need rent for her to move into a new place.
Couple of details that might (or might not) be valuable:
1) Our credit is REALLY good, so we're no risk.
2) We have over 50% of the purchase price to put down from the sell of our last house.
3) Even if the bank gives a slightly higher purchase price, we'd be willing to up our offer by $10k or so.
4) We have no worries
about the current owners scamming us. She's an older grandmother who
still takes immaculate care of her home.
Would renting the place cause a further slowdown in the approval process?
Also, any thoughts/suggestions on what's going on w/the BPO? Like I said, it's been nearly 4 weeks. I thought maybe the problem was that our offer was too low, but our offer will pay 100% of the 1st mortgage and (by my best guess) between
60-70% of the 2nd mortgage. Looking around, it seems like that's not a
bad offer, right? Any suggestions on what can be done to move things along?
Any thoughts/advice would be very helpful. Thanks in advance!
mortgage holder signed off on our offer (almost immediately because I
guess they took the full amount owed to them). However, the 2nd
mortgage holder (Chase) hasn't yet. They said that the BPO would be received no later than 15 days, but they completed the BPO nearly 4 weeks
ago, but it has not been entered yet. I have no idea what's happened to it.
We were able to extend our current short-term lease until the end of June, but we're
beginning to get worried that we won't have things settled even in time
to move out by then. Also, we need to be in the new school district
because my son has been accepted into a special program -- he may lose
his spot if we're not over there by July-ish.
I had the idea of working with the seller to rent the home from her until the final approval is made -- is that even possible? I suspect the seller would need rent for her to move into a new place.
Couple of details that might (or might not) be valuable:
1) Our credit is REALLY good, so we're no risk.
2) We have over 50% of the purchase price to put down from the sell of our last house.
3) Even if the bank gives a slightly higher purchase price, we'd be willing to up our offer by $10k or so.
4) We have no worries
about the current owners scamming us. She's an older grandmother who
still takes immaculate care of her home.
Would renting the place cause a further slowdown in the approval process?
Also, any thoughts/suggestions on what's going on w/the BPO? Like I said, it's been nearly 4 weeks. I thought maybe the problem was that our offer was too low, but our offer will pay 100% of the 1st mortgage and (by my best guess) between
60-70% of the 2nd mortgage. Looking around, it seems like that's not a
bad offer, right? Any suggestions on what can be done to move things along?
Any thoughts/advice would be very helpful. Thanks in advance!
Replies to This Discussion
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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I have had Sacramento sellers let short sale buyers move in and rent. However, they didn't charge any rent or they charged $1 because sellers can't profit from a short sale and because that financial statement may need to be redrawn to reflect additional income. I've also made buyers sign an addendum that clearly states that the home is in foreclosure, there is no guarantee the short sale will be approved, and it could go through to auction, causing the bank to eventually evict the buyers.
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Permalink Reply by CJ Wright on
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I have a short sale where the sellers moved across country leaving the home vacant. Buyers asked to rent until closing. Sellers are not late on payments - not pre-foreclosure. Just a short sale because they built and closed on this home in June 2009.
My office has a separate Property Management section. We had the buyers go thru a formal leasing process, sign a lease, put down a deposit, pet fee, etc. Lease will terminate at the closing.
Just received my short sale approval yesterday. We close on or before 6/7. Everybody is happy. The key to this success is the seller was not pre-foreclosure, and the formal lease independent of the purchase contract. If the short sale fell thru, we still had a good tenant for a year. -
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