Blub blub has it all right in my opinion. As a principal broker who supervises 54 agents, I was extremely impressed with blub blub's explanation about short sales. Exactly right on target And I also agree that the agent who did not want to get involved, was only thinking of their own interests. Not the clients.
Financing is more a concern in the lower priced condos and should be a part of your thought process when you buy. If they are non FHA, they can certainly be harder to finance and sell. The higher priced condos usually attract buyers who can afford to put 15 or 20% down. So they can get financing through conventional loans.
In Arkasas FIRPTA is a part of our residential sales contracts. The closing agents are tasked with taking care of this. But ultimately the responsibility DOES fall back on the Broker. So I require our agents to maintain vigilance about this for sellers and buyers who are not citizens.. Some Buyers do eventually become sellers. We do this by asking for everyones drivers licnse copy at closing.
I would suggest that your realtor should do a market analysis on this property. After looking this over you will know if the seller is overpriced. If so, wait a while and look for another choice. Perhaps the seller will come down, but more likely you will find another home that is perfect for you. If the analysis confirms that the seller is priced right, your realtor should be able to show you what the average percentage of list price has been for sold properties in your area. Go from there if you reoffer.
I can NOT stress enough, that in a short sale, the listing price truly means very little. Neither the listing agent nor the seller actually know what the bank will accept. So ...find a good realtor to work with and make an offer that is similar to the current market. Usually, but not always, you can bid up to 15% below the" normal" market. Expect to wait 3 to 4 months for an answer from the sellers mortgage holder and it may be a counter, and acceptance, or a rejection (no answer.)The one exception is a pre-approved short sale. You should offer the listed price and expect an answer in 10 days to two weeks.
We have had this problem repeatedly. Apparently Fannie Mae as a seller does not feel it needs to meet the same requirements when selling as funding. The only solution we have found here is a local in- house lender who will close with the buyer providing an escrow equal to 150% of the roof replacement cost.
Connie gave an excellent answer. Each state has its own rules for contracts. But the selling agent , the one who represented you, should know how to get the contract withdrawn. If not that agents Broker knows how. A common assumption is that thebank has the earnest money. But they are not the sellers. So check with your agents. Typically, in Arkansas a short sale takes at least 3 months and often 6 months to close.
The previous answer about the time frame is very accurate. About a week. The value as Sharon pointed out will usually fall in line with a good realtors market analysis.The repairs for an FHA are slightly different than what a home inspector will find. FHA is concerned with health and hazard and maintenance of the structure. So Stairways needs a handrail? this comes under hazard. Mold? definitely under health. window exterior trim or fascia peeling. Maintenance. I know that you are nervous, but FHA appraiser is actually working for your benefit as much or more so than they are working for the banks benefit.
The appraisers must include these REO, HUD, short sales, etc in their calculations if they are in the neighborhood and of comparable size.If that is all that has sold in an area, then yes that is all they can use. If there is a blend of comparables then they used a blended approach. (some REO, some not REO and so forth)
For my buyers own benefit, I stress the importance of a pre-approval letter. I do not like to show houses without it. The last thing I want to happen is for a buyer to fall in love with a house , spend money on inspections, and appraisals, and then be completely crushed and disappointed when they do not qualify. Also I do explain that thispre-approval letter gives the buyer a stronger negotiating stance, and reassures the sel ler that the buyer is serious.