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Replies (11)
- Elisa Mullins, CPM, Broker, "discountrealtor"
- Contributions:515
In my experience with working short sales in our market; the lender will automatically ask for more money.. they are attempting to get all they can; They may not necessarily rely on the facts as you have submitted.. or the fact that there are no other offers and home has been for sale so long.. i would question why they think it is worth more money.. they will be facing a foreclosure situation if no one buys it..and the fact that they are getting nearly 100% of loan on first mortgage.... that is unheard of in short sale situations in my opinion.. so they should be taking a loss.. to avoid the foreclosure situation looming..
your realtor should be making that arguement with them.. or you should if you are not represented... i believe you have a strong chance to hold out at your price.
good luck .
your realtor should be making that arguement with them.. or you should if you are not represented... i believe you have a strong chance to hold out at your price.
good luck .
- Linda Strasberg, "L Strasberg"
- Contributions:2315
The interior BPO's come in at 5% above/or below the list price!
- frey16
- Contributions:20
Thanks discountrealltor. We're a bit concerned that they'll deny us and we do like the house a lot. However, we have distanced ourselves enough to not "pay whatever it takes" and risk our financial future in the process.
I guess my main concern is that the interior BPO is the number we're good on (we're at almost 87% of that). The exterior BPO, which was requested by the bank separately is the one that may ultimately hurt us. I don't know if the lender was using the "make more in foreclosure" as a scare tactic or what.
It's going to be a miserable 2 weeks of waiting though.
And Linda, I don't know what your post means. The list price equalled the outstanding mortgage. The BPOs came in later, ironically the interior one coming in at the same price as listed.
I guess my main concern is that the interior BPO is the number we're good on (we're at almost 87% of that). The exterior BPO, which was requested by the bank separately is the one that may ultimately hurt us. I don't know if the lender was using the "make more in foreclosure" as a scare tactic or what.
It's going to be a miserable 2 weeks of waiting though.
And Linda, I don't know what your post means. The list price equalled the outstanding mortgage. The BPOs came in later, ironically the interior one coming in at the same price as listed.
- Michael Beckerman, "mbeckerman"
- Contributions:169
Any seller should respond with asking you to raise your price. Its a good negotiation strategy. They can always come back and meet your original price.
Should you have increased your first offer? Since you don't "have" to have the house, the question is: would other people bid more once this property becomes owned by the lender? If you're getting a "below market" deal you want to pounce on it. If not the lender will come around. If they aren't smart enough, you can buy it after they take possession and relist it.
Should you have increased your first offer? Since you don't "have" to have the house, the question is: would other people bid more once this property becomes owned by the lender? If you're getting a "below market" deal you want to pounce on it. If not the lender will come around. If they aren't smart enough, you can buy it after they take possession and relist it.
- frey16
- Contributions:20
Thanks Michael. Appreciate the insight.
Is there any situation that a bank can make more in foreclosure with these numbers? I would think that they can oust the second lender and lose any agent commission but wouldn't the time and money to foreclose wipe out that gain and more? The only thought I had was that they thought they could list for higher than the $250,000 owed. But the ARV would be much lower. It just doesn't make sense to me.
Is there any situation that a bank can make more in foreclosure with these numbers? I would think that they can oust the second lender and lose any agent commission but wouldn't the time and money to foreclose wipe out that gain and more? The only thought I had was that they thought they could list for higher than the $250,000 owed. But the ARV would be much lower. It just doesn't make sense to me.
- Michael Beckerman, "mbeckerman"
- Contributions:169
If you get the property for less than $240,000 (brokers get $10,000), then the second mortgage is already getting nothing. Typically lenders will get less after they take back the property in foreclosure, that's why they are willing to do the short sales. Properties can (and usually do) quickly deteriorate when empty and owned by a corporation. I think you're bid is close enough to what the first lender wants and you should get the deal. Good Luck!
- frey16
- Contributions:20
Thanks Michael. I just heard that it has gone to the closing department so we're down to the last step. The property has been vacant for the past two years already, which is why it's probably in the condition it's in. The homeowner tried to sell it but no luck in this market. Finally gave up at the end of last year and ended up in the short sale. My feeling is that they will either accept this bid and clear it off their books or foreclose on it. I don't foresee it being denied and put back on the market as a short sale.
- frey16
- Contributions:20
Had to come back to give an update because I got so much good advice here.
We succeeded in our short sale. While the bank came back and said they wanted 230,000 they gave us the option to get some quotes to "prove" the repairs that the BPO didn't reveal. We did the very next day and had a verbal approval in less than 24 hours!
We closed last month and I wanted to thank everyone again for their comments. And for those going for a short sale, good luck and good patience.
We succeeded in our short sale. While the bank came back and said they wanted 230,000 they gave us the option to get some quotes to "prove" the repairs that the BPO didn't reveal. We did the very next day and had a verbal approval in less than 24 hours!
We closed last month and I wanted to thank everyone again for their comments. And for those going for a short sale, good luck and good patience.
- asugradinwa
- Contributions:37
Wow! Great to hear! I'm waiting to hear back on a short sale offer (hopefully next week). This post gives me some hope!
- ToiSaunders
- Contributions:2
Same here! My fiance and I just made an offer of $221 on a short sale and asked for closing costs to be paid. The house was listed at $214 so we thought we were doing pretty good offering higher than the listing amount. The 1st lender came back and verbally stated they were looking for an offer of $239. I was very disappointed that I got into somewhat of a bait and switch. Apparently, the house had been on the market for over 300 days and the sellers lowered the listing price to get more offers because they weren't getting any originally. So, I countered the banks verbal offer of $239 and went $230. So, we are waiting to hear back but I'm nervous that the bank is firm on the $239 price. I really hope not because I love the house and would hate to lose it.
We suggest offers to our clients on short sales at what the current market appraises the property, not the loan/s amounts on the short sale. We would them subtract whatever repairs are deemed necessary and that is how we come up with a market offer. If the bank puts it to foreclosure, they are only going to get market value for it.
Short sale counter offer decision
Also, the interior BPO came in at $250 and the exterior came in at a lot higher, maybe $285-290. The house looks great from the outside, it's the inside that needs the work. We did supply the bank with one estimate for grading of the yard (water in ducts) and the home inspection summary pages.
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