Offering On A Short Sale

[Ryan Canfield]

Hello,

My wife and I closed on a 3 flat in March that we are house hacking.  We're continuing to save money and are going to look into conventional mortgage options again in the fall.

If we are planning to buy another property in the next 9-12 months, would there be any advantage to us looking and making offers on Short Sales now knowing that it could take from what I hear up to 12 months to actually purchase the property?  Obviously it would present a challenge if the decision making bank came back sooner, but is this a feasible strategy to use?

[Gerald Demers]

Hello @Ryan Canfield.  Buying short sales when you are looking for a home can be extremely frustrating.  But if you are buying investment properties and the sales timeline doesn't affect you, it's a great option.  AND, when you make an offer, that is one thing I tell them "I am the buyer that doesn't go away.  If it takes you 3 months, 6 months, 9 months, it does not matter to me.  We will put a 90 day deadline on the contract but between you and me, that is only to help encourage the loss mitigator to move on this.  But know if the contract needs to be extended, that is not an issue."

Too many buyers get tired of waiting and demand their deposit back and move on.  So, you are making their lives easier.  

Gerald Demers