*Lily* asked:


Will the bank accept any offer in a short sale?
If the original amount own is $ 230,000 what is the lowest offer that the bank will take?
How does this process work?
I have someone that is interesting in buying the house. But He wants to know much he should offer?

Herlinda

6 Responses to “Short Sale?”

1. Tobe G on March 1st, 2009 6:32 pm

   A short sale is when the people whom are about to foreclose on their home try to sell it before the foreclosure deadline. I am sure if your offer is reasonable it will be considered.

2. DJ B on March 3rd, 2009 2:02 am

   Well only the bank knows. In a short sale the bank has agreed to accept an amount that most likely will cover all the expenses, including Realtors fees. Obviously like any other seller, they aren’t going to tell you how much. You have been provided with an amount acceptable if listed in MLS.

   Note this, getting a response could take several weeks. And there are pretty stringent restrictions on putting in an offer as it relates to the buyer qualifications and financial situation, down to what they will accept as down payment. So be sure you are dealing with an agent that is familiar with these types of sales.

   In some cases, once the lender accepts your offer, they may give you a period of time to have an inspection done. But once the inspection is complete if you don’t want the house, you better get it to them in writing quickly.

   This can be a great source for a home, but it’s not unlike buying a HUD foreclosure.

3. Matthew on March 5th, 2009 1:33 am

   Most banks will NOT accept short sale offers. I’m an agent and normally see 9 or 10 rejections for every short sale offer a bank accepts.

   You need to call your lender, get a realtor who’s experienced in short sales, and gather all your financial information together because the bank’s going to want proof you can’t pay your bill.

4. yahoooo! on March 8th, 2009 10:54 am

   A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as prop taxes, transfer taxes, and the real estate practitioner’s commission.

   Some short salers could also be in default of their monthly payment and be headed for foreclosures.

   To know the property is short – check your comparable analysis. Together with that are the sum total of your taxes and dues. The net sheet from a realtor should lead you to the amount of the property that’s being put to short sale.

   There an option besides short sale. Fannie Mae and Freddie Mac have a program to assist suprime borrowers, many lenders are more willing to offer loan modification option.

   You also be in best to talk directly to the bank about the property and ask as much questions you can think of.
   Good Luck.

5. brian on March 9th, 2009 8:04 am

   Normally lenders will not accept less than 85% of the loan balance in a short sale (this is net proceeds to them after everyone gets paid). Some lenders are stricter than others in their guidelines. Some will go as low as 82% some wont budge one penny below 88%. Have your agent provide the lender with information about similar properties in your zip code that have sold. Have them include how many have sold v. how many are on the market, how long it took them to sell, and how much they sold for vs. the list price. With this kind of data, the lender can make an informed decision about accepting your short sale. If the lender realizes that the market is very soft, and they will aquire the house through forclosure, they may be more willing to bend their internal guidelines in order to avoid this. Lenders do not want your house. If they have the data on the market provided by your agent, then the lender can become your partner in the transaction because they want the same thing you want…..no forclosure.

6. blueyonder on March 12th, 2009 10:09 am

   We had to do a short sale a few months ago. Unfortunately we had a realtor who was not knowledgable with the process.

   My husband accepted a job overseas with a huge pay cut. We only owned our home we were selling for two years and knew we could not make a profit, so we tried to sell to break even. Our realtor was optimistic we could do this, so we put our home on the market for $335,000. We had a buyer and were all set to sell.
   The appraiser came the following week and appraised our house for $300,000!!!!! We were devastated! We could not afford mortgage payments with the the new salary my husband would be making and we owed more on the house than it was worth. We were never late on a payment and even paid extra each month on the principal. The buyers backed out, but then, the next day decided to still buy the house, but at $300,000.
   We called our lenders immediately and told them the situation. We were very honest and forthcoming. They told us we had to submit a hardship letter explaining why we wanted a short sale and we had to submit our last tax statements, pay stubs and the buyer’s agreement to buy the house and appraisal. We also submitted the new contract from my husband’s new job which showed the huge paycut. You need someone to want to buy the house in order to do a short sale. We did all that was required of us. Our realtor was no help. She did nothing except give negative comments, like, “I don’t think this going happen, etc” We only had 5 weeks to work with as we were prepared for our overseas move.
   Fortunately, we were granted the short sale (the day before we closed!!!) The amount that is short (i.e. the amount the lender forgives, which incl. commission for realtor and all closing costs involved. You do not have to bring anything to closing) will be a tax write off for them and claimed as income on your taxes! So, be aware that you will be taxed for that.
   Also, the lender sent out their own appraiser to appraise and compare to the previous appraisal. THe new appraisal came in at $305,000. NOt much difference.
   I hoped this helped.