Zillow Advice: Buying Process - In a short sale is it the bank or the current owners that approve a offer on home?

The owner is the one listed ...

Sun, 01 Nov 2009 19:43:00 GMT

The owner is the one listed on the deed and the lender is the one who holds the note. If the offer never gets past the owner (for whatever reason), the bank can't negotiate or approve a short sale. When the bank owns the home after a owner has defaulted, it is called a foreclosure.

The short answer is both, ...

Sun, 01 Nov 2009 19:33:00 GMT

The short answer is both, but the bank has the final say as to how much of a hit that they want to take.

No I am not confused, at ...

Sun, 01 Nov 2009 19:31:00 GMT

No I am not confused, at all. You are typical of a type of agent, that runs around answering things they don't know anything about.

the owner has to sell the home. period. Show me a single short sale that sells with out the owner agreeing to sell it. You can't because that is impossible. [and yes I said owner. that is what the person is, that is how they are labeled on the sales contract, that is what the bank will refer to them as, the homeowner, that is what the law calls them]

If you buy a home with a mortgage, you own the home, you have the bundle of rights associated with ownership. If you have a mortgage, or a deed of trust you give certain rights away, rights I might add, that only the owner can give away.

The owner sells the home, if it is a short sale, the bank approves of the shortage in an addendum. If the owner doesn't sign the sales contract, the home isn't selling...

do you know what an owner ...

Sun, 01 Nov 2009 19:10:00 GMT

do you know what an owner is? if you "own" a home means you have free and clear title. If you have free and clear title you can not do a "short sale" since there would be no lender. You seem a little confused. Show me an upside down borrower that is approving short sales on behalf of the lender?
How do you have the power to sell what you do not own?

Johny, you seem confused. ...

Sun, 01 Nov 2009 18:47:00 GMT

Johny, you seem confused. Saying the owner is not in a position to approve anything is about as wrong as you could be. Until the foreclosure has happened, the owner of record still has 100% of his/her ownership rights. Unless the owner signs a sale contract, everything else is meaningless.

Now, after the owner has signed a sales contract, the bank will have to approve the sale, since the bank is not getting all of their money back, they will have to approve the transaction as well.

But make no mistake, the owner owns the home, and has all the power in the world to sell it, or not sell it.

The lender approves the offer, ...

Sun, 01 Nov 2009 18:23:00 GMT

The lender approves the offer, the current owner does not own the property outright in a short sale or have the equity to pay of the mortgage in full so they are not in a position to approve anything.

this discussion is seven ...

Fri, 30 Oct 2009 06:46:00 GMT

this discussion is seven months old. thankyou for your timely contribution!

in a short sale the Lender ...

Fri, 30 Oct 2009 05:21:00 GMT

in a short sale the Lender or servicer (bank) reviews the your loan for the following:

1- the Asset (home, building or...) according to condition, market value and appraisal

2- The Borrower`s( your Seller) Financial to determine hard ship and inability to pay. Current Owner has to be willing to go through the short sale and cooperate with the bank to get the Short sale done. NO SELLER COOPERATION, NO DEAL.

try www.ShortSaleFiling.com for info

As mentioned the seller accepts ...

Sun, 03 May 2009 23:11:00 GMT

As mentioned the seller accepts the offer but you must read the short sale addendum ......The seller and the bank can continue to receive offers up to the sellers lender accepting the short sale...Now we look for the highest and best offer , sometimes it is a lower offer with better financing terms...as a listing agent our fiduciary respnsibility is to diminish as much as possible our sellers deficit...Do we submit all offers to bank? No, but the sellers are aware of all offers...On occasion some banks have required that we submit all offers......Frankly most of the banks are so disorganized and the confusion it would cause to send all offers would bring would cause more harm to our client. Most just want the best and highest offer. If we submit an offer and then another one comes in that is substantially higher than what was submitted that would decrease our sellers liability it cannot be ignored.. we always go back to the original offer and apprise them of such as a courtesy if they can up the ante.....We have had occasions where the bank does not want to look at any other offers depending on where they are in the process as a higher offer may not offset their penalties and loss for closing at a later date.

I have purchased a short ...

Thu, 30 Apr 2009 16:38:00 GMT

I have purchased a short sale myself last fall and did very well with it. I would be careful to search for agents who call themselves "experts" in this field. The listing agent for my property had called her self a short-sale expert on her website though she had not much of an idea of what she was doing.
In a short sale only one offer at a time. Many agents are not aware of this, though it is a regulation.
To your question: the owner can agree or disagree to submit the offer to the bank. If I was a buyer I would definatly put a clause in the contract that the owner has to give a response back in couple of days. So in case he/she is not going to submit the offer to the bank I can ove on.

Let me know if you have more questions about short sales. I am happy to answer them