Home for Christmas...err...New Years...ummm....maybe by President's Day...

[white_rabbit_1]

Well, after a weekend of looking at houses, we found one that we liked enough to place an offer on. We sat down (Steve, my father and myself) with the realator, James and talked numbers. Not just with the price of the home itself, closing costs, percentage rates, what an FHA loan covers and does not cover, PMI, Home Insurance, attorney fees,

Comments

[methuss]

Owned by the bank, but occupied....a REO.

You realize that if you buy it, you will be responsible for evicting the current occupants if they don't go on their own by the time you sign the papers. You may also be barred from evicting them if they are renters and the IL law suspending evicitons on REO tenants doesn't expire (or if a Federal version is passed).

[white_rabbit_1]

It's listed as a "shortage sale"....not sure if that's the same thing as you're talking about...

We'll be sure to check it out first before we sign any final documents though as I would not want to deal with evicting anyone from any property. That's just....no.

Thanks for the heads up. I really appreciate that. I'll be sure to ask the realators this week to be sure that it's not REO...

[methuss]

A short-sale is not a "bank-owned" property. A short-sale means the bank is a 3rd party to the price negotiations. The bank may or may not reject the price you and the owner agree on if it is less than what the property owner owes. The problem is getting the bank to agree on a short-sale quickly is like asking the government for documents on Roswell. It takes a very long time.

"bank owned" means the property has already been foreclosed and is a REO. This also means the occupants are not paying the mortgage any more and are very likely not to be taking care of the property.

If it is a short-sale, then it means the owner is at least 3 months behind on their mortgage payments and either is or soon will be in a foreclosure. Once the foreclosure process starts, it will be impossible to negotiate a short-sale because that means the mortgage company will have to take a loss on the lawyer fees paid to the foreclosure firm.

Also one mor ething to be aware of. The property taxes may be behind....and if you buy it the back taxes are