In this home buying adventure I've learned lots of new words. Today I learned two new words/phrases:
Rent back - I sent M, our agent, an address today of a home we'd like to check out (we have an offer in on a short sale but our agent advised us to "keep looking"). She then replied with "the sellers may need to do a rent back until July," to which my reply was, "what's a rent back?"
Maybe if I would've given it a little more thought I could've figured it out on my own but basically a rent back means, you buy it and the current sellers rent it from you until, in this case, July.
Two Loans on a Short Sale - No silly, this doesn't mean that you need to get two loans (who would think that?! not me.....). This, in fact, means that the sellers are "short" on two loans. So not only do they need to get an approval to sell for less than they owe on one loan, they need to get it from two different banks. Long story short, it means that the wait time is probably longer than the already long wait time of a traditional short sale. To which I said, "No thank you!"
Love the blog and the idea behind it. Actually, when there are 2 loans on a home, in most instances, the lender in the secondary position, will end up writing off the majority of the loan and get to keep anywhere between $1,000 to $3,000.
ReplyDeleteFor the most part, folks going through a short sale process have 2 or more loans. Very tough on buyers.
Glad you like the blog! From what we've experienced short sales are nearly impossible. I'm creating a post about a recent short sale that we just lost.
ReplyDeleteMore details to come!