Business & Finance

I've bid on a short-sale home 5 mos. ago. B/A is trying to work with the sellers of the home in which they owe $15K to B/A. My realtor says I have a couple of options as the buyer: I pay 15K & cont. to purchase home or put some cash down and the difference will increase my mortgage loan and monthly mortgage payment. I don't feel it's in my best interest. I welcome other's input.

I am seeing this more and more and I hate it. I understand that the lender wants to get as much out of the home as possible. I understand that sometimes there is a second mortgage in place that is bogging down the deal. But I hate the idea of making my buying clients bringing money to the table to fix someone else's problems.

Unless you are completely in love with this house, I would say leave it. Then hope that it comes back on the market as a foreclosure at a better price. =)

We've seen a few banks want the seller, as a condition of short sale approval, to sign a "small" note to help offset some of the loss. I don't think it has anything to do with the offer amount, in most cases. If the house is worth $15K more than you offered, it will appraise at that price for your loan, and it qualifies for the first-time buyer's credit, then in reality, it may be worthwhile to consider. (As of 12/1, the $8000 first-time buyer credit will be ending.) There may be other aspects of the sale that the seller needs to comply with, so before you offer more $$, make sure this is the ONLY thing hanging up approval.