Mar

15

Is this short-sale or not?

Filed Under Short Sale Hardship 

NNC asked:


We just got an counter-offer on house that contained the statement below:
“This is currently not a short-sale, however, sellers need to submit the purchase agreement to the bank for review prior to final ratification”

We do know from the realtor that sellers owe more to lender than the current market value of the house.

What does statement on the offer mean? Is this a short-sale hidden as something else? Why would the bank need to review the purchase agreement if it’s not a short-sale?

Anybody has experienced this before?

Agnus

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Comments

4 Responses to “Is this short-sale or not?”

  1. Othniel on March 15th, 2009 2:12 pm

    This is probably pre-foreclosure and the bank has not agreed to a short sale. The bank is making a counter offer and once they have done that you you can counter offer or withdraw your offer. I hope you are being represented by a Realtor who is working for you and not the listing agent.

    You can counter with your original offer or offer a little more as a final and best offer. Don’t hold your breath because banks are notorious for their lack of understanding of how negotiating real estate works. Your agent should advise you since he or she knows how these things work.

  2. alejandra h on March 16th, 2009 10:51 pm

    I am a Real Estate agent in Florida.I deal with short sales every day.Why they have to get approval from the bank,and they own more than the current market value.This transaction sounds like a Short Sale to me.

  3. A D on March 18th, 2009 3:24 pm

    Could mean the owners are behind or about to be behind in their payments and hope to get an offer that will net them what they need.

    When they get an offer that is below what it will cost them to sell and pay off the mortgage loan (s)…then it will be a short sale.

    I think the agent was dancing around the issue. Good luck.

  4. Joe A on March 21st, 2009 7:13 pm

    The seller has not asked if the lender would take a short sale. The offer you are submitting would probably fall under a short sale. Because the seller would still need to pay reg. closing costs taxes and real estate commissions. If it means that much to you offer the asking price if it is indeed fair. You don’t need to low ball it.