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Does a Bank Only Do a Short Sale if a Seller is Delinquent?
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.



How to Get a Mortgage When You Have Bad Credit

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.



Should You Write a Back Up Offer?

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.



How Flexible is That Short Sale Price?
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.



Struggling Homeowners Take on Roommates

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.



Buying Before Dumping Your Short Sale Home

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.



How Long Should a Seller Wait for Offer Acceptance?
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.



How to Buy a Cheap Foreclosure

Buyers tend to lean toward checking out foreclosures for one reason and one reason only, and that is to buy a cheap foreclosure.

Because it's the cheap price on that foreclosure that makes up for the hassle of dealing with the bank, the asset manager, the confusing bank addendums and the foreclosure bank's 'as is' policy. At least in theory that's how it's supposed to work. But not every foreclosure is a cheap foreclosure.

I'm seeing movement, though, toward banks pricing their foreclosures more in line with the comparable sales. Of course, many of those comparable sales are, no surprise here, short sales and foreclosures . . . read more about cheap foreclosures.