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I offered bank approved price for short sale condo

i offered bank approved price for short sale condo. 
I'm paying cash( no mortgage )
it was 120k and my agent just told me since the condo has been on the market about 6 month. so the bank needs to do re appraisal. so my agent told me the the bank is going to approve me after few weeks because of reappraisal. 
and he also said " The good news is that the appraisal might come in lower so you might be paying less than $120K " BUT one of Realtor dan told me the even the bank got new low appraisal like 110k or 100k, the bank still wants $120k. 
but my agent told me " the bank has to sell the condo what appraisal shows. they can't sell more or less than appraisal. is that truth? is my agent lying? who's tell me the true? can i buy that condo with new low appraisal ? if new appraisal is 100k? or do i have to buy that condo with my first bank approved price 120k? ( prices are examples)
  • January 23 2014 - South Tacoma
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Answers (3)

In my experience with short sales the bank wants at least the appraised value. I did have a sale last year where we had an accepted offer for 200K (for example) and submitted it to the bank along with all of the short sale paperwork (the short sale was not pre-approved). The bank then came back telling me as the listing agent to list the property at 190k...the buyers who were offering 200k then lowered their offer to 190k and the bank accepted. I am not saying that this is what you should do-every bank and every short sale transaction are different-just sharing one of my own experiences.

My suggestion to you without knowing the market area, property, and specific details: If there are multiple offers that you are competing with and you really want to buy the property just leave your offer at the bank approved price. If you feel you  may have some negotiating power based on the length on market, condition of property, etc then you may be inclined to reduce your offer. However, if you do this it could be a very long time until you have any response from the bank and it will most likely prolong the process.

I would also recommend consulting your real estate attorney, specifically one who has experience with short sales. Those are my thoughts and suggestions. Good luck to you!
  • January 23 2014
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Profile picture for nwhome.us
My suggestion is that you stop trying to outguess what the bank is going to do and simply WAIT until they get back to you.  There is nothing you can do to influence how they will respond or when they will respond and wasting time on thinking about it is not going to be productive.  Keep looking for other properties and if this price comes back some day (absolutely no predicting when) at something that is reasonable, hallelujah!
  • January 23 2014
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The bank can do whatever the bank wants to do.  Major banks work to clear the books, small banks tend to think small and mess around.
  • January 23 2014
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