Question Details

Nancy Havens, Home Buyer in Woonsocket, RI

I am working with a facilitator to buy a short sale,I put in a bid of full price they say thats not enough,but I am the only bidder,is thet normal?

Asked by Nancy Havens, Woonsocket, RI Fri Jul 22, 2011

I do not have an agent,I do have my prequail,the loan is ready for the asking price,the woman that showed it to me(works for the facilitators office) said they only put it at that price to get interest in it.But the home has been on the market for 1 1/2 years and when I put in my bid I was the only one.Is this legal?

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Answers

8
Get yourself a licensed professional agent who specializes in short sales. The process will be a lot easier for you.
0 votes Thank Flag Link Fri Aug 12, 2011
You can counter their counter offer. But usually when the they state what they want that is what you have to pay. Make sure you are not overpaying. If you are go back to the facilitator and see what they do to help you negotiate or tell them you are going to get an agent. I do not recommend buying without an agent either but now that you are this far in the process if you get an agent that will take the price up more.
0 votes Thank Flag Link Sat Jul 23, 2011
Nancy, your question indicates you have very little practical knowledge of the short sale process. This may create a ever increasing level of frustration for you.

Search other theads on Trulia regarding 'Short Sale Questions' to get a better understanding.

You have entered the 'wild, wild west' of real estate. For every perceived notion that rules exist, there will be real world exception that these rules don't apply. Taking this journey without and advocate on your side is not advised. Secure the services of an experienced real estate professional and/or an attorney. Your adventure is about to begin.
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0 votes Thank Flag Link Sat Jul 23, 2011
Nancy

You really should have a Buyer's Agent represent you in purchasing any home. Especially a short sale. Short sales can be some of the best deals you will find. Banks are following guidelines as to what percentage of market value they will accept for a home. In most cases, the Seller will accept any offer to start the short sale process moving. The bank, as Margaret indicated, will have an appraiser or other Brokers in the area prepare a BPO (Brokers price opinion of value) Once the bank determines value, they will counter with a price within guidelines or accept your offer if it meets their price requirement. A Buyer's Agent would have explained the process to you and you would have known that the full price was way below market value. Your agent could have given you a range to expect to pay for the property at the time you submitted your offer. This would have been valuable information to you and could have either prepared you for reality or you may have decided to offer on a different property. It is legal since the sale was contingent upon the bank approving the sale.
0 votes Thank Flag Link Fri Jul 22, 2011
It's not uncommon at all. If you're getting close to the trustee's sale date, lenders won't postpone the sale unless you've procured a signed purchase contract. To generate interest, the listing agent needs to list it below market. Sometimes the competition actually bid up the price higher than the fair market.
0 votes Thank Flag Link Fri Jul 22, 2011
It's not uncommon at all. If you're getting close to the trustee's sale date, lenders won't postpone the sale unless you've procured a signed purchase contract. To generate interest, the listing agent needs to list it below market. Sometimes the competition actually bid up the price higher than the fair market.
0 votes Thank Flag Link Fri Jul 22, 2011
Is it legal? Yes. The seller accepted your offer to purchase, but the investors have to accept the short on the loan. On the back end on the transaction of a short sale are investors. Those investors, not the bank or servicer determine the minimum sales price (net) they will accept on a short sale. Basically the bank/investors countered your offer. You can accept or walk from the transcation.

See what can be done to resolve with the listing agent. Good luck!
0 votes Thank Flag Link Fri Jul 22, 2011
Hi Nancy - I think you should definitely have an agent, and one experienced in buying and selling short sales. They can be very complicated. Typically, a Realtor will list the property at or near market value. A buyer will put in an offer which is presented to the seller's lender for approval. The seller's lender will send out their own agent to report back to them the fair market value of the property. If it is within the lender's (unpublished) guidelines, they will accept the offer. If not, they will counter offer. So a buyer of a short sale property should always be prepared for a higher counter offer from the bank. Your Realtor can find out if the seller is taking multiple offers and prepare you on what to expect in a short sale.
0 votes Thank Flag Link Fri Jul 22, 2011
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