Another commonly asked question about short sales (and it's a relevant question for any buyer trying to purchase a home) is the following:

I OWN ANOTHER HOME I NEED TO SELL - CAN I MAKE AN OFFER ON A SHORT SALE?

The short answer (sorry about the pun) is YES. Certainly you can make an offer any time you want.

But the more important question is whether this is a prudent thing to do.

Many sellers in this slower market with lots of inventory will accept an offer contingent on the buyer selling their current home. Not all, but some. Certainly more than in a seller's market. And there will likely be a 48-hour or 72-hour first right of refusal clause in case another buyer comes along with an offer, and you will have that time frame to remove your contingency or withdraw your offer.

A short sale is different, since you are dealing with the bank. The bank wants the best offer, and the cleanest one, i.e., with a minimum of contingencies., so they can sell the property, minimize their financial loss, and get the property off their books Thus, if you are trying to acquire a short sale and really want o be effective in doing so, chances are a contingency offer will NOT be viewed as a competitive one. Remember, the banks know what is going on in the market, too. My feeling is that it is a waste of time.

But if the short sale is languishing on the market and there are no offer, you might give it a try. Just don't be surprised if the bank does not accept it, and they might not even respond. Talk with your agent, and really think seriously about what you are trying to accomplish.

Previous Questions and Answers on Short Sales:

Who Pays the Taxes and Penalties?

Who Pays the HOA Fees?

Who Pays the Commissions?

HAPPY THANKSGIVING!!

****************************************

Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods (incouding other areas)

Here's another common question about buying a short sale (and again, it applies, to some extent, to the typical sale).

WHO PAYS THE COMMISSIONS?

In a short sale, as in the typical sale, the commission is paid out of the proceeds due the seller in accordance with the listing agreement the seller has with the brokerage.

In a short sale, because there is a financial hardship and the amount of money that is being paid for the home is less than the amount owed, the lender, who must approve the short sale, will generally make a final determination of the amount of the commissions paid to the agents involved out of the final proceeds. These amount MAY vary from the original agreement.

If you have a signed buyer agency agreement with your agent, be sure to check on the terms and conditions regarding commissions to see if you will be liable for any portion (e.g., if, for example, the amount being offered as commission to the buy side is less than your agreement on commission with your buyer agent as stipulated in the contract).

Previous Questions and Answers on Short Sales:

Who Pays the Taxes and Penalties?

Who Pays the HOA Fees?

*********************************************************

Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods (including other areas)

Here is another common question - it's also relevant for a "normal" sale.

WHO PAYS THE HOA FEES, IF ANY?

The Home Owner Association (HOA) fee is paid by the seller.

Generally this fee will be paid in advance for the month of the closing and therefore will be pro-rated (some HOA fees are paid quarterly). The buyer is responsible for the portion from the closing until the end of the month and will reimburse the seller. If the HOA fee has not been paid, the seller will pay the portion owed up to closing and the buyer pays the balance. Usually there will be a document to certify that the HOA fees are paid in full. As a buyer this is something you will want to verify as part of the transaction since you do not want to be liable for the fees prior to the time you take ownership.

You will want to know if there are any special assessments or fees that are being levied by the HOA or will be in the future. This information should be obtained from the HOA and should be disclosed by the seller, but it is always wise to check. You can ask for the minutes of HOA meetings and the budget so you can determine if these are issues.

Previous Questions and Answers on Short Sales:

Who Pays the Taxes and Penalties?

****************************************

Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods

*****************************************************************************

Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods