Patience is a virtue in this business. If patience is not your strength, you will lose out on great deals. For the home in Part 2, patience won the day. The buyer was very patient as was the seller. The buyer and seller understood it would take a while working through the process. Sometimes a deal must be passed up due to time constraints. If you know you aren't a patient person, or that the situation doesn't allow you to be patient then you must allow these deals to pass you by. Don't buy into any sales agent's pitch that a short sale will go quickly. They may have better than average closing rate, but that rate is still a long time when the situation doesn't allow it. A foreclosure will have issues and the more complicated your loan the longer the foreclosure will take to get to closing. In the last 6 months, many of my clients have been pursuing the RD-USDA loan as there is no down payment associated with that loan. It is not impossible to close on a foreclosure with a USDA loan, but it will take a lengthy period of time. This is because the majority of foreclosure homes need some repairs and the USDA loan has the strictest criteria concerning the condition of the home. FHA loans also have a strict criteria in which to qualify the home. If the foreclosure seller is willing to do the repairs or the repairs are minimal and can qualify for an escrowed repair holdback then the sale will move forward. Many times the banks and sellers of the foreclosed homes don't want to put more money into the home and are taking a loss of some sort already on the loan so they are sold "as is".
One recent closing comes to mind that makes me smile. The man was purchasing an investment home and was in town for a short period of time. He stated his price, we countered, he accepted, we all moved forward and closed. I spoke to the man's agent and she told me he didn't get bogged down in the minutia. A couple thousand here or there didn't matter in the end as the end result of the monthly payment wasn't changed but by a few dollars. If the home is what you really want, is getting what you want worth a few extra dollars a month? His wife thinks so. She is much happier in her dream home than with him saving $10-$20 dollars each month.