omg it's the bank who does its the bank jeezzzzzzzzz whats wrong with you people?when negotiating the purchase price of a short sale blah blah is the question. well lets see then ask 100,000 k and let the bank foreclose or get them in involved do the short sale packet for the seller, get the bpo, get the bank appraisal ,and get the price the bank will take prior to any offers that way there isnt any needless back and way back with the banks. Theres nothing to lose or gain on the sellers side but alot of stress and heart ache and complicating it with the so called opinoins only make it a longer process. Hold on for a long ride and dont waver you might get a great deal. PROACTIVE PEOPLE GET DEALS CLOSED. THIS IS ON MATTERS OF PRICE YOU MIGHT HAVE TO PAY MORE THAN YOUR SHARE OF SELLERS CLOSING COSTS AND OTHER FEES USAUALLY THE SELLER WOULD MAKE IN A NORMAL DEAL.

Hi Louis-

The Seller sets the price, because technically, he is still the owner and has the right to make all of the decisions about the property including sales price.

However, once the price is negotiated and the contract is signed, that entire short sale package is sent to the bank. For Bank Approval.

So,. the answer to your question is, first you negotiate with the seller, for the price of the home, then you send that package off to the bank. Then you negotiate with the seller for personal property and home inspection issues concerning the property. ( the other terms)

Once all of that is negotiated, you are waiting on the bank to either accept or reject your signed offer.

Hope that helps!

The seller sets the price. After the seller accepts your offer the bank must approve it to finalize the deal.

Hi Louis,
When the dust all settles, you are negotiating with the bank that holds the seller's note. A word of advise. The asking price is generally set by the listing agent. Often, the bank is not involved in that part of the equation. So you stand a chance of having your offer countered with a much different price than expected. Also, short sales are very time intensive right now. In my opinion, you are much better served looking for bank repos. If you have any other questions, you will find my contact information in the web link below. Good Luck.

Louis,
You're finding out the hard way that a short sale can be complicated. In reality, you are negotiating with both the Seller and Lender. The Seller owns the home and, although it may not be in their best interest, can chose to stop the sale to you. The Lender has to agree to a payoff for less than the amount of the mortgage owed (I won't get into 2nd & 3rd lienholders).
Best Regards,
Tim Soper
RE/MAX Pinnacle
Shorewood, IL