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Bank approved short sale listing
Posted on 9/23/16 at 6:07 pm
Posted on 9/23/16 at 6:07 pm
What's that mean as far as a possible buyer is concerned? Do you have to offer said listing price? Are these generally listings you can low ball or I've even read sometimes you are to offer more than listing price.
3
Posted on 9/23/16 at 6:56 pm to Chad504boy
I bought my current home in this situation. The bank actually had it listed very high (even the realtor acknowledged that they didn't expect to get that price). I ended up paying about 94% of list price.
I'm sure it's not always this way but that's my experience.
I'm sure it's not always this way but that's my experience.
Posted on 9/23/16 at 8:06 pm to Chad504boy
I've bought a short sale before. Like the above poster said they aren't always good deals.
It can also take longer than a normal sale because the owner and lender have to agree on a price and an acceptable loss. At least that's the way it was explained to me by a broker.
Say you find one with an asking price of 200k. The owner may owe 220k. If you submit a 190k offer the owner has to accept and then the mortgage company has to decide if that's an acceptable loss.
You can certainly offer less than the asking price though. The reason it's in short sale to begin with is the owner has acknowledged they can't make the payments and they've agreed with the lender to try and sell it before foreclosure occurs.
Depending on the type of loan on the place the mortgage company will have insurance that covers them from losses (up to a certain amount)
It can also take longer than a normal sale because the owner and lender have to agree on a price and an acceptable loss. At least that's the way it was explained to me by a broker.
Say you find one with an asking price of 200k. The owner may owe 220k. If you submit a 190k offer the owner has to accept and then the mortgage company has to decide if that's an acceptable loss.
You can certainly offer less than the asking price though. The reason it's in short sale to begin with is the owner has acknowledged they can't make the payments and they've agreed with the lender to try and sell it before foreclosure occurs.
Depending on the type of loan on the place the mortgage company will have insurance that covers them from losses (up to a certain amount)
This post was edited on 9/23/16 at 8:09 pm
Posted on 9/26/16 at 12:08 pm to Chad504boy
One of the steps involved in a short sale is the bank realizing that the owner won't be able to pay off the mortgage and that it is likely that the house won't sell for enough to pay off the note. Many banks make this determination on the front end.
So all that has happened here; is the bank has done their pre-work and knows that the likely conclusion is a short sale. This should save a bit of time when the bank is considering an offer. However, my experience has been that if there is a decent amount of time that has passed, the bank will want to re-do all those calculations again.
You can offer whatever you want. If you offer list price, it will be accepted, if you offer less than list price, then it's a negotiation like anything else.
So all that has happened here; is the bank has done their pre-work and knows that the likely conclusion is a short sale. This should save a bit of time when the bank is considering an offer. However, my experience has been that if there is a decent amount of time that has passed, the bank will want to re-do all those calculations again.
You can offer whatever you want. If you offer list price, it will be accepted, if you offer less than list price, then it's a negotiation like anything else.
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