Buying Our First house...I Think

I'd be cautious about a house left vacant for 6 years.
Most likely the heat/ac was not running that whole time.
Without ac/heat, there might be moisture/mold issues.
Check the crawl spaces/attic/basement (it's good you found the termites so it can be fixed before purchase is final).
Be sure to look for signs of flooding/watermarks, etc.
Does it have any Chinese drywall in it? (You'll know by the smell, and check electrical wiring for signs of corrosion).
The plumbing (incoming/outgoing), septic system, well (if any), the wiring, roof, etc all should be checked out.
Also (it seems basic but it saves a WORLD of problems if you do it up front) a lot survey - know where your property lines are!
It saves with arguing with the neighbors about who owns what (and who mows what) and where you can put fencing for kids/dogs, etc.
New houses don't have maintenance/replacement problems like some older properties do, BUT new houses can have issues where some things were not installed properly (vents/duct-work/insulation/etc), and mostly likely any builder warranty the property might have had with it's first owner was over within a year or two (4-5 years ago).
It could be everything will be perfectly fine!
I tend to be on the cautious side, but that's just me.

Congratulations!!!

have you done and inspection on the home to make sure the pipes are still working? that would scare me having a house vacant for SIX YEARS!! YIKES!!!

I would definitely get a home inspection and see if there is a warranty you can purchase for things that go wrong. As stuff will go wrong - it happens with ANYTHING!!

I've never purchased a short sale. i've never purchased a home that was vacant for six years either. I think it's great that you have lived next to it for two years. So that means you know the area and whether or not it was vandalized, etc. I say GO FOR IT!! Really. I'd be nervous - but I was when we bought before as well. Go for it!!!

Congratulations! It's possible that it could move faster, I think banks try to move faster these days to get things off the books, so it could be done sooner. I suggest you look closer at your lease to re-read your terms -- my last house I only had to give 30 days notice and could techically leave before the lease was over (long term rental with several addendums). Check the laws in your state, and then feel out your landlord. They may not mind just letting you go and finding a new tenant at a new time, especially if you've been good tenants and you have a good relationship. It was a perfect opportunity for your family, and hopefully the landlord will get that and not penalize you for it. Then take some deep breaths and relax -- it'll be OK!

Our house was vacant for a year or two before we bought it (foreclosure). We bought it sight unseen at the sheriff's auction, so we were allowed to take possession 30 days after the auction. My only suggestion would be to make sure and check the attic. We had some unwanted "pet" raccoons that had been living in our attics for quite some time. It ended up taking us well over a year to get rid of them- we'd catch them and seal the hole where they were getting in and then more would chew new holes and come back in. Anyway, we had to remove all our insulation, sanitize and reblow new insulation (when we finally got rid of them)- not to mention the many trips that we had to pay for from animal control. It was not visible from the outside and only in one room inside that there had been a problem, so make sure to have that checked out.

Congrats!!
I would mention to your landlord that you put an offer in on a home that is a short sale. At lease your landlord will know that you will not be renewing the lease and can also prepare. They do usually take a few months to close so I wouldn't stress too much.

In the mean time I would start putting some money aside for the AC/heat pump, start pricing them now (Lenox makes one that is solar powered and IMO would be worth it here in FL). You need to also be prepared for things breaking, like pipes and such since the home has not been used. We have had some problems like this since buying a foreclosure that had been empty for at least two years. Some things just dry out like parts in the faucets, etc.

Are there appliances in the house? Make sure the inspector checks everything and be there with him/her. If there is major damage you can ask for a price reduction or for the seller to fix it.

my neighbor just did a short sale in 4 months.

We bought our house via short sale. Darn thing nearly gave me an ulcer ;-)

I think we made an offer in June and the owner accepted within days. Then, in August, I found out that it was going into foreclosure to be sold by trustee sale, but the bank pulled back because of our offer (I don't know how that works, just that it did!). Then they approved it in September. We closed in October. Phew.

You might be able to get out of your lease early with only having to pay for 2 months rent to break it. Look in your lease and see what it says. Our property manager screwed us and had the box marked that we couldn't do that because she took advantage of the fact we weren't from the area and didn't know the laws. Also, even if you do break it, the landlorad has to try to rent it out in good faith as well and then you'll be let out of the lease because he/she can't double dip rent from you and from the new people.

Not familiar with short sales but we avoided them when we were looking to buy a house. You are smart doing the home inspection and I hope you put the cost of the AC unit into the sellers hands as well!!!

Good luck and try not to stress about it! If it was meant to be then it will happen :)

S.

Make sure you can back out if the inspection shows a lot of extra expenses. We have bought and sold homes for years, and a lot of the short sales are good buys, but many are money pits ready to become a nightmare to you.

Also, make sure you can really afford the house. By you saying that you only have a certain amount of money or that you have to live frugal tells me that it may be too much. The novelty of owing a house wears off when you don't have money to do anything else without having to use credit cards. That is what got so many people into trouble in this current economic down turn. I always say it is good to have a 6 month emergency fund to handle all expenses in case there is a loss of job or illness. I learned that years ago when I was hit with a medical illness that prevented me from working. It came on suddenly. Ok, enough lecturing. :)

Good luck with everything!

N.

Have you asked your landlord if you can get out of your lease early? I've been able to do that many times.
Good luck!

I am not sure what specifically you are worried about. Looks like you have the inspection covered. I would imagine it takes longer to close but once you close you are fine, that is what title insurance is for, ya know?

I'd run fast from a home that has been vacant for 6 years. Ours was vacant for 9mo and that was enough! LOL...sure hope you are getting the house for a steal of a deal!

There's nothing "short" about a "short sale". I have had several friends purchase homes that were being short sold and both took over 6 months to close and take ownership. My BIL sold his condo as a short sale and it took nearly 8 months, during which time they were paying two mortgages, so be prepared for it to take a while.

Worse comes to worse, you can "rent" from the current owner until the purchase goes through! It will be great!