Buying a short sale house requirements?

Question

I was wondering if buying a foreclosed home in Manteca,CA would required me to put a down payment when buying the home? If so what is the minimum required?

Answer 1

There are banks that are still handling Nehamiah (I doubt I spelled that right).    Let me know your real email address (can't attach anything to the messages) and I will send you some houses that you might be able to get.

Answer 2

It doesn't necessarily.  Cash is king, but it really depends on your financing and what kind of financing the bank will accept.  If you are 100% financed, then it would most likely not be required, but if you do have a down payment, it will look more favorable.

Answer 3

A short sale never requires you to do anything special except to wait on the homeowner's bank for approval rather than the seller directly.

If you don't have the 3% down payment, and you are not a veteran that can qualify for a VA loan, then unfortunately, there isn't much you can do.

The days of not having to have money for a downpayment are about long gone.

Answer 4

It would be the same as for any other home purchase.

Answer 5

Dear Tamatea,

         Your question contains inconsistancy. If this is a short sale situation, the property foreclosure has not been completed.

          You offer may contain any terms you desire and it is up to the lender to accept or reject your offer.

           I see very, very few successful completed short sales in California even where lenders  potentially receive many hundred thousands of cash dollars seeing their loan satisfied pursuant to the terms of the short sale terms.

            If this is a foreclosure the lender is actually the property owner. An owner can sell on whatever terms mutually acceptable. It is critical for lenders to remove real property from their portfolio because  real estate is a non-cash asset reducing available loan making balances...

             If lucky, you might find a lender to make a sale with little or nothing down.

             REMEMBER.

             First, this loose lending practice was the origin of lenders initial problems.

              Second, California real estate is still in a free fall likely to continue decline for six months to eighteen more months .

         I recommend a lease-option with a portion of rent applying to your down payment. This would need be at least a three to five year lease-option. Your exercise price would need be flexible based upon market value or a particular appraiser pre-identified in the agreement.  You will need the right to exercise your purchase right at a time of your convenience.

             Anyone enterring into a contract with you will do a credit check. IF YOU DO NOT HAVE $11,500 in assets, the likeihood of qualifying for even an option is slim.

             Further you need to check on the properties existing financing. If your landlord stops paying can you afford to make the monthly payments AND assume the full original note balance? You are almost forced to find a property with no remaining lender financing.

       Best Wishes.