Profile picture for user564631

Homeowner in shortsale counter offered?

three days ago we had placed an offer of 170 in a short sale, today our relator came back to us and stated that the HOME owner, not the bank, counter offered to 177 to split the difference of the home. How should we react to this situation? We feel that in the end the homeowner is splitting hairs where the offer still must go to the bank.
  • June 25 2012 - US
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Answers (8)

Profile picture for Pamela Shemet

Did they have previous offers that were rejected by the bank?

  • June 25 2012
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Profile picture for user564631
it had been on the market for 200 days then was removed and placed short sale for another 54 without one offer we've done a heavy scan through its not in a flooded area, the house itself is fine. The bank has rejecting nothing because its gotten 0 offers
  • June 25 2012
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Profile picture for wetdawgs
A seller is allowed to counter offer with a short sale, and even at asking price there is no guarantee the lender will accept the offer.   The first round of negotiation is with the seller. Only when the seller accepts your offer does it go to the lender.

The bottom line is what is the house worth to you?   Did your agent run a CMA on the property  to help calibrate your offer price?
  • June 25 2012
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Profile picture for user564631
Additionally the house is listed at 184, the CMA for us the houses in the area to compare run average of 225k.
  • June 25 2012
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Although they are in short sale the homeowners have the right to counter. They will get 1099'd for the difference in sales price and purchase price so the homeowner wanting that difference to be minimal is understandable. You can always counter back if your holding pretty firm you can always have your agent counter that you won't increase.
  • June 25 2012
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The 1099 issue is irrelevant if the home is their primary residence. Federal tax law addresses that issue through 2012.

If the offer the sellers present to the bank is too low, the bank may require the sellers to chip in to minimize the banks losses. My guess is they may have assets they would choose not to part with and therefore need a higher sale price.
  • June 25 2012
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Profile picture for Ofe Polack
If I understand the issue correctly, your buyer agent did a CMA that indicates the property is worth approximately $225,000, you offered below the value of the property $170,000, the seller has the right to counter, and he did at $177,000 still below market value.  What is the question?  This is round one, if you sign a P&S witth the seller the offer is submitted to the lender and they can also counter if they want to.  This is what a short sale is all about.  Are you ready for it? 
  • June 25 2012
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Profile picture for B Mike West
As you have outlined the situation, the seller's counter is still way below market. What is the problem?  You can accept their counter, counter back or walk away. 
If the CMA is accurate the lien holder is likely to come back with a much higher counter than $ 177,000--if they accept the seller's financial hardship as genuine.  The lien holder will be interested in minimizing the investor's loss and couldn't care less about you.  If they think they can get $1 more at the court house steps they will not approve the short sale. They will just go to foreclosure and walk away with the cash.

If you really like the house. be prepared to pay more than $177,000 in the end.
  • June 25 2012
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