I am biding on a home which is listed as short sale. Divorce is hardship. I was wondering if somebody can tell me if bank accepts my offer , does existing owner can buy back from the bank if he/she offer same price which I have put down in the contract. In addition, is there a law under certain curcumstances the buyer can get his/her home back up to two years after the sale. Please advise
When you say bidding? You made a contract offer or you produced and presented a hardship package with an offer?
Divorce is in fact a hardship!
If you are living in a state which has a redemption period, the owner has to come back and pay the bank all of there mortages, first and second and has to pay your actual costs as an investor so you don’t lose anything.
However in this market it is very unlikely that if an owner say bought the property for $300k, current market value $160k and old mortgage amounts are a $235k first and a $25k second that they would turn around and redeem them.
If someone say was foreclosed on that had a $300k home and current value is $160k and they only owed $115k on a first TD, then in this scenerio it would be well worth the old owner coming back and redeeming thier home.
But this is probable pretty rare overall.
Check with the real estate board in your state for redemption periods and the terms and conditions a previous owner has to follow.
Thanks! yes i have submitted my offer with their hardship letter. I am still trying to figure out as they can not individually pay off mortgage but if the bank accepts my offer, and one of the existing owner can come forward and tell the bank that he or she can afford the mortgage on new price. Will the bank hand over the home to one of them back ?Since hardship is not jobloss but divorce. I just want to know is this possible?
Thoughts?