Foreclosure in Newark>Question Details

VerĂ³nica Pe…, Home Buyer in 07032

My husband & I placed an offer on a short sale in February, only now, 6 months later will the bank be making

Asked by VerĂ³nica Peres Cardoso, 07032 Sun Aug 24, 2008

their decision. Our offer (the only one on the home) was $20k above the listing price. Are there any ramifications to changing the offer price once the bank has accepted our initial offer? We feel that since taking such a long time to give us an answer, we shouldn't have to pay above and beyond the listing price - mainly because we were the only offer on the home. Thanks for your answers beforehand. =]

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Laura Giannotta’s answer
You don't say if the bank accepted your offer. On the short sales I've done, after a contract or contracts are submitted, the bank comes up with its bottom line. Did you submit a contract or merely an offer to purchase?

If you submitted a contract, ask your attorney or agent to prepare amendments on the price and be prepared to wait .
0 votes Thank Flag Link Mon Aug 25, 2008
If your offer was just that, an "offer" and not binding, sure, renegotiate the place has likely lost value since then anyway. If you have signed a contract speak with your attorney. Hopefully there was a appraisal clause protecting you from paying too much.
0 votes Thank Flag Link Sun Aug 24, 2008
Unfortanately the asking price on a shrort sale often has no rhyme nor reason as a relationship to actual value. In most short sales you lower the price fast and furious, like 10% a week until you get 1 or more offers to submit. It is standard that the bank takes 6 months to approve a short sale. Once it is approve dthey will not take less without guess what, taking another 3-6 months to make a decision. Often times short sales are advertised to the public without any work being done or approved. The first thing that should be done is approving the seller finacially to even do a short sale, the second is getting the appraisal done in a timely manner. Next is teh bank determining how much of a loss they want to take if any. Often they need to get approval from a second mortgae company or the private mortgage insurance company. A good agent can cut the total time of a short sale in ahlf by building a relationship with the asset manager and constant communication. Unfortanately the price teh accepted is teh best the will take. Only 1 out 10 short sales close for a reason/Good luck with your purchase Veronica
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0 votes Thank Flag Link Sun Aug 24, 2008
Hi Veronica, a current pricing analysis will flush out whether, given the passage of time, the price is still a good value relative to the current market conditions. If the original list represented a discount to market at the time, and after reflecting on the updated pricing analysis, you still are happy with the transaction, then proceed.

I suspect if you make a change - which I think you can unless you are already under contract - that you will enter into another protracted approval process. And as you have already experienced, short sales are anything but short.

Good luck and best,
Jeannie Feenick
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0 votes Thank Flag Link Sun Aug 24, 2008
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