Upcoming Foreclosures

Tenants in a Short Sale trying to buy!?

We are the Tenants of a unit that is up for a Short Sale. We put an all cash bid down. We need help with the Terms of the continued occupancy during the sale process. 1) Our lease ends on 6/10/09 2) The Trustee owes $378k 3) Notice of foreclosure was set for 5/5/09, she got it extend the day of to 6/19/09. 4) She applied our deposit to the last month of or rent 5) She owes us a total of $400 deposit for our dog and keys 6) She is offering to give us the last month's rent when the unit goes into escrow 7) We pay $1395 a month 8) The unit is currently listed at $204k 9) We put an all cash bid of $175k A) Should we ask for a reduction of rent? Say down to $1000? B) What if the unit does go into foreclosure? We won't get that last month's rent free that she is offering us. We live in CA so we understand that in the event of a foreclosure we get a 60 days' notice to vacate the property upon recipe of a written notice. What kind of concessions/guarantee should we ask from our trustee/owner? C) Since we put down a all cash deposit, how willing and cooperative should we be in letting her show it to other people. I understand that we DON'T have to let anyone in to see the place. What would benefit the process of our sale D) Why would the banks only give a 44 day extension? Would they likely extend it again? E) Anything else we need to consider?

Public Comments

1. A. Sure try to negotiate as low as possible. In fact, tell her that since you don't know if they will accept the short sale, you will need to save up to move and you can't afford to do that if you have to pay her and leave when it forcloses. Tell her if the short sale is a success as you being the buyer, then you will pro-rate the rent when escrow closes and you will settle all your issues then. B. You won't get any from the lender and the owner can't gaurantee anything. C. The owner can give you 24 hour notice to show the place. I suggest you ask the listing agent to have it appointment only listing on a couple of weekdays and one weekend day. There is really no benefit to you if the BPO has already been completed. However, it will help the owner so she can get a new buyer if the bank rejects your offer. D. They will give an extension (usually 30 days) if they are working on a short sale. It's common to give up to 3 extensions. E. Yes, check out this blog on how to buy a short sale: http://activerain.com/blogsview/1070569/how-to-buy-a-short-sale-a-must-read-for-agents-and-buyers- Good Luck!