Has anyone on here successfully closed a short sale?  I don't and haven't placed any offers on short sales but I found a house that just might change my mind...

I'm curious as to the process, the chances, and the timeframe. 

I haven't closed on a short sale.  In the 90's downturn, they were a viable option and banks seemed to deal with them better.  

I have recently made an offer on  short sale, but my expectation level is fairly low.  Most of my knowledge is based on reading experiences online, talking with others, and from talking with my realtor.   There are some good posts on the forum with advice.  

I looked at half a dozen short sales and at least 3 of these were clearly just stall tactics from the owners.  One wanted someone to buy their house (and stick it to the bank of course), then rent back to them for three years, then give them an option to buy the house.  Yeah, and on Tuesday's I am the tooth fairy!  

One positive thing I have heard is that banks are starting to consider short sales and are acting faster.  Of course, that only means they are not taking 7 or 8 months, rather it can be down to 2 or 3 months to respond. Still a long time when the market is dropping 2% a month in some areas and at some price points.

Also, you can probably wait for some of these short sales to turn into foreclosures?  If your realtor is steering you away and you have the patience to play the game of short sale, you should probably interview other realtors who are willing to work with you over a longer period of time.

As for losing on bids - keep in mind, price is not the only factor considered by bank/reo sellers these days.  Be sure you are viable - like 20% down and decent credit and cash reserves available.  I have heard that they don't always choose the highest offer if its a 10 percenter or has iffy cash reserves or credit.  You should also convey all this information with your offer.  Again, just what I have picked up from friends, other realtors, and various threads.  I do know someone personally who was the "best" (not highest) offer out of over 10 on an REO.  They told him no one else had the solid financials and that helped him.

Hi - just my two cents here - we have avoided short sales for all the obvious reasons that many people on this forum have already discussed.

In the year that we have been looking and tracking homes we have noticed that if you have the time and patience to wait for the short sale to wend its' way thrugh the pipeline, it might 're-appear' as a foreclosure at an extremely reduced price.  Of course this is only for those who have the time, patience, and money to continue renting etc. and wait out the process. 

One home we looked at, began its' life as a short sale, the bank turned down someone's low ball offer (some friends of ours really wanted the house),  the house was then sent to an auction company with no results, and is now on the market as a foreclosure at 50K LESS than the initial short sale low ball offer that the bank had refused from our friends who have since moved on and purchased a home already!  As it sits now, the house has been lingering on the market, has been vandalized of all of its plumbing and electrical and now no one is very interested in it.  Strange, strange, 'selling' tactics indeed.

I very rarely hear about short sales closing but that just might be because they take so long that by the time they close no one remembers them even being on the market.