Buying a short Sale

I first would like to say a big thank you as a I am flattered that you are taking a moment out of your day to read and view my ideas and inspirations.  Remodeling usually costs more than a dime, but there are some projects that can be taken on that don't cost a fortune and help make a not so good part of your home great, make something ordinary truly yours, or give you a creative way to remember something special.

I have spent the last 3 months waiting to finalize the purchase of a short sale home in Portland, OR.   It was a tough decision to make the commitment to be a home owner again.  This will be my third home.  Unlike previous times I had strict rules for this purchase.  I would only buy a home that I could afford to live in by myself, but I could option to have a roommate to lower my monthly bills.  The house also had to have the potential to be a rental for no more than what I owed on it.  If my mortgage was $1000 dollars the potential for rental income had to be more than $1000.  I also did not want to buy a money pit, that needed new roofs, and windows and would take away all my money from the fun projects I have missed not being a home owner.  It took a good 6 months of looking at some real money pits but I finally found one.  A 1951 2 bedroom 769 square foot ranch in a little cookie cutter sub-division.  It was like stepping back into the 50's as the houses are the same.  And so the process began to make it mine.



 To catch up as to what has happened to this point.  I made the offer on September 9th, 2011.  I was one of three prospective buyers that made offers on the same day.  On the advice of some friends who had experience as buyers and sellers short sales I opted to offer 2,500 more than the asking price.  Not sure if this was why my offer was accepted but the good news was it was now going to the bank.  My real estate agent has been fantastic.  She outlined the basic time frames for me as follows..... 

• SELLER ACCEPTS THE OFFER
• List agent submits a full packet to the bank including seller  hardship information (4-5 days)
• The packet sits at the bank until it is assigned to a negotiator (1-3months)
• BPO ( third party valuation- not sure what BPO actually stands for) is ordered by the negotiator (1 month to 6 weeks) 
• The bank will counter or accept the offer  (takes about 2 weeks from completed BPO)
• When there is mutual acceptance and third party approval the process will normally  move pretty quick at that point and be a 30  day close.

After adding up all the time frames I came to the conclusion it was going to be 4-7 months.  So I took a deep breath and prepared to wait.  Today we are currently at the stage of the BPO (3rd party value assessment) having been ordered on the October 30th and waiting for the results.

In the mean time I have been planning, and planning and planning.....My lists of wishes is long but here is a start of the projects that I am planning on taking on and hopefully will have the chance to share with you.

• Paint the entire inside of the house.
• Tear out carpeting to reveal the 2" oak hardwood floors under neath.
• Buy a stove.
• Buy a washer and dryer.
• Add / move electrical in the kitchen for appliances.
• Replace existing kitchen cabinetry to allow for additional appliances - A dishwasher mostly.
• Remove trees in front yard that are either a to close to the house or damaged (broken trunks).
• New hot water heater.
• New toilet / install a low flow.
• Add trim to uncased openings in living room.
• Replace front door with a 1 3/4 exterior door for safety.
• Repair / replace exterior window sills that are rotting.
• Replace missing shingles in back of house.
• Paint the entire outside of the house.
• Remove wall / increase opening between kitchen and living room.
• Install new kitchen lighting.
• Replace shower surround in bath.
• and anything else that comes up from the home inspection.

So stay tuned and I will share the latest as it comes up.

Again thanks for reading.

Kari