Help! I’m Making an Offer on a Short Sale Listing!! #6

By
Real Estate Agent with Keller Williams Eastside Market Center
http://actvra.in/Hn9

Help! I’m Making an Offer on a Short Sale Listing!! #6

Help! I’m Making an Offer on a Short Sale Listing!!  #6

How can the bank ruin our sale?Help! I’m Making an Offer on a Short Sale Listing!! #6

If the bank has to forbear any money, then the bank is defacto in charge of the sale.

If your offer on the property is for an amount that does not fully pay off the underlying mortgage or mortgages, then the bank is involved in the sale.

The seller still owns the property, so your offer is to the seller.

However, the seller has no equity. No money in the game. The seller will sign your offer, then it has to be presented to the bank (or banks) to determine if the bank is willing to lose the amount of money required to close.
Help! I’m Making an Offer on a Short Sale Listing!! #6
1. The bank has to determine the price it will accept. It is almost always higher than the asking price.
2. The bank sets the time line. Although there is a new promise of short sales from start to finish in 60 days, the normal time to do a short sale has been 90 days or more.
3. The bank works over the seller to make sure they do not have money to contribute to the sale.
4. The bank can add a deficiency judgement against the seller as a condition of sale.
5. The bank can deny your request for seller paid closing costs to help you with the purchase.Help! I’m Making an Offer on a Short Sale Listing!! #6
6. Ultimately, the bank can foreclose on the house before the sale is consummated.

So, although your offer on a short sale listing is to the seller, the bank is the ultimate determiner of price, timing and conditions of sale.

close

Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Erica Ramus 03/20/2012 04:15 PM
  2. Judi K Barrett 03/20/2012 06:17 PM
  3. Gabe Sanders 03/26/2012 04:13 AM
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help im making an offer on a short sale listing 6

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Rainmaker
158,742
Angelica Blatt
Selling the Monterey Peninsula over 15 years!
DeLuca Real Estate

I am sure that most consumets trying to buy short-sales do not completely understand this process. Thanks for the good information.

March 20, 2012 01:19 PM
Ambassador
1,200,789
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

I am teaching a short sale success course tomorrow. It is a timely topic for buyers and sellers to understand.

March 20, 2012 04:16 PM
Ambassador
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Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

So well said.. any buyer or seller thinking of being involved in a shortsale needs to read this post.

March 20, 2012 05:52 PM
Rainmaker
568,877
Phil Leng
Phil Leng Team - Residential Real Estate Experts &
Keller Williams Eastside Market Center

Thank you so much for your comments.

It is written for three buyers I have right now who are looking at short sales and making offers.

Phil

March 21, 2012 02:56 AM
Rainmaker
608,204
Liz Wallace
Broker C21 Sherlock Homes, Rockville Centre, LI, N
Century 21 Sherlock Homes

Would you mind if I shared this with my Agents.  I'll check back to see if it's OK.

March 21, 2012 06:54 AM
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Rainmaker
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Phil Leng

Phil Leng Team - Residential Real Estate Experts &
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Phil Leng
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