Hi Michelle:

Just wonder if you have bought the house yet? Short sale is very different than others and you really need an experienced Realtor who is knowledgable in the short sale process.

Since this is a more than month old post, please let me know your current status if you still need help.

Best,
Sylvia Barry
Marin Realtor

CW,

Get the offer written and delivered. After you submit the offer proceed as though it will never bear fruit. If you REALLY want the property raise your bar.
Cash vs. credit is all the same. A loan without a funding contingency is quite as strong as cash since withdrawal prior to close will result in your loss of deposit. So... do you see, the size of the deposit enhances the offer most, up to 3% of the offer.

Banks do it their way and each has their own way.

If you're doing this without an agent be care full. If you're using an agent talk with them. Their advice is your best guide since they understand all considerations.

Michelle,
Are you already working with an agent?? If so, you should be asking your agent these questions. How do you know that they already have a cash offer for $750,000? Has the listing agent for the property indicated that they are even willing to look at another offer?
Short sales are VERY complicated!! In the end, the lender/lenders want to get as much as possible to pay against the loan/loans, potential back property taxes, and closing costs. If they are looking at more than one offer, you want to offer more than the offer on the table and show your qualifications as far as pre-approval letter, proof of down payment, etc. The banks/lenders are looking at the bottom line and want to get as much as possible.
We work with both short sales and bank owned properties in Marin and Sonoma counties.

Mary Kay and Kathy

Hello Michelle,

The banks truly cares about their bottom line.. money is money and it does not much matter if the offer is cash or financed. The bank wants to see that you will be able to close at the end of the process.
For the cash part of your offer, you should provide proof that you have the cash at hand, i.e. a bank statement or a "VOD" (verification of deposit) that you can easily obtain from your banking institution should do the trick.
For the financing part, you should get a pre-approval directly from a financial institution or if you are using a mortgage broker you should ask him/her to provide you with "DU" approval.
You should find out how many liens are on the property, (if there are two mortgages you might receive an approval from one lender faster then the other since lenders do not operate in the same time line), if there any association liens, tax liens, attorney liens, etc...the more liens the trickier the transaction.
Make sure the seller has a hardship and you should offer current market value for the home.. your Realtor should be able to provide you with a Comparative Market analysis or a Broker's Price opinion. You can always obtain an appraisal to send it with your offer.
Keep us posted..... best luck to you.

Help lots of people and have a great day!!!

Patty Da Silva, CDPE©
CERTIFIED DISTRESSED PROPERTY EXPERT©
Real Estate Short Sale Specialist®
At Home with Diversity®

Licensed REALTOR® & Mortgage Broker - Senior Financial Advisor

(305) 244-0609

http://www.pattydasilva.com

With your loan to value your offer is almost as good as cash. You will want to probabily go $760,000. The important thing is make sure you include a proof of funds letter that shows where you are getting your cash from, also include a pre approval letter for your mortgage. You should not put any contingincies in the offer, dont ask them to fix anything and write in closing within 28 days of acceptance. The listing agent should have you sign a short sale addendum or you should write in this sale is subject to the lenders approval of a short sale with time being of the essence. You should also ask tehm if the bank has approbve dthe seller financially for the short sale and has the bank completed their appraisal on the property? these are items that can make the process go easier or hold it up. Good luck with your offer.

Banks are looking at the strongest offers. In this market all cash is a pretty strong offer, however, it depends where the money is. By this I mean is the money coming from out of country, and can the buyers show the funds in an accessible account. With regard to how much you should offer I would let an experienced agent (one that works in your area) guide you regarding price. One of the biggest pitfalls of short sales is they move at a snails pace and answers can be long and far between.