Home Buying in Vernon>Question Details

Dank, Home Buyer in Vernon, NJ

Hello, How can I get a seller to agree to my offer on a short sale and sign / submit the papers to the bank? Dan :-)

Asked by Dank, Vernon, NJ Tue Apr 13, 2010

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8
Hi Dank,

The listing agent is doing a disservice to the seller by not sending the first offer that comes in to the bank. The seller should be told that this is a short sale and that all offers should be submitted to the bank.. First offer in, low or not. The Bank will make a decision on how much of a hit to take, not the seller.

Although people want to think they are in control of their home and yes, in the grand scheme of things they are, As they are as they are on the hook for the note. But not in a short sale. The bank will say.. o.k.. We’ll take the hit -or- sorry, we will not take that amount, but we will accept this number...

There are many, many great buys that are short sales right now. If you have a trained agent in your corner they close fast. I recently presented an offer, taught the listing agent what to do.. and we had a response in writing in 14 days. That is a personal best. The average, if the agents are knowledgeable is 4 weeks.

Due diligence is key to any transaction and you must be fully prepared to make it work in your favor. Ignore the naysayers as they are just not qualified or equipped to understand the process and make it work.

See my blog: http://www.trulia.com/blog/john_sacktig/
4 votes Thank Flag Link Wed Apr 14, 2010
Dan,

Well, let's see...if the house is listed at $200,000 and it comps out at $200,000 and you offer $100,000 (after all it's a short sale so they'll take any offer) you aren' going to get the seller, and especially the bank to sign/accept anything. Remember the "seller/owner" can sign any contract but it's ultimately up to the bank to accept the offer depending on how much they are willing to lose.

Contrary to what Marc says, good offers that have no contingencies and meet the banks requirements DO make it to the closing table, but a short sale is often not short at all. However, I have recently had banks respond to my initial request in less than a month, and send the appraiser out within a week of receiving a signed contract (this was Wells Fargo) and they seem to be getting better at responding in a reasonable amount of time.

Get your agent to do the comparatives for you, and determine if the list price is fair in relation to those comparatives. Then make your best offer in writing, and see what happens. Again, it''s ultimately the BANK who will approve your contract (and they can counter-offer one too).
4 votes Thank Flag Link Wed Apr 14, 2010
I agree with Mary Petti. An offer has to be within the are's market value. While I'm happy to hear that Ms. Petti has had a lender that's cooperative, there are still some that are not or there are appraisers who continue over-value a property. The agent who submits ANY offer is doing a disservice to the seller because the property won't get a market value offer and it will still take several weeks for the lender to submit their "fair market counter" IF they even return with a number.. some have simply said no to the offer and asked for a better one without supplying what they will accept. Fair market, or just under, is what should be submitted, with comparables to support the offer.
Flag Sat Apr 14, 2012
Uh, Kristi.. details. The question was asked in April of 2010.

A little late to the party, eh?
1 vote Thank Flag Link Fri Mar 1, 2013
Yes I just saw that. I will check next time. lol
0 votes Thank Flag Link Fri Mar 1, 2013
Hi Dank:

We are having a short sale seminar tomorrow at my office with a local attorney. He would be able to tell you legally what you are able to do. It is the Prudential Gross & Jansen office in Vernon. Good luck.
0 votes Thank Flag Link Fri Mar 1, 2013
If the seller really wants to sell it, he or she will accept your offer. The listing agent is supposed to submit the offer. I would only recommend making a fair offer otherwise you will be wasting your time. Banks send their own BPO agent or appraiser to determine how much they will take on the property. I believe it is not much they are willing to take as LOSS, but how much is the fair market price at this moment. How long does a short sale take to get approved? It depends on the bank and agent/lawyer (whoever is negotiating the short sale) some banks take forever and some respond faster! If the agent negotiating the short sale doesn’t send the right package, or doesn’t follow up, it will delay! Honestly, I have not seen two weeks approval! Unless, the short sale was in process already! Just giving a realistic time frame! 1 week to review the short sale package, 1 week to do an appraisal, 1 week to send to/for the investor... Somebody said below banks are responding faster, that is correct! Banks are encouraging agents to call them and let them know once they take short sale listing thus they could get ahead and do their BPO/appraisal! I think that is a good idea! I have short sale listing currently and the negotiator emailed me asking me to drop the price. They already did their appraisal!
Good Luck! Just get a good agent and it will work out well for you! If you have patience, short sale has its advantage for the buyer too!
0 votes Thank Flag Link Wed Apr 14, 2010
Make it is attractive as possible, and have your agent speak to the sellers agent.

Laura Giannotta
0 votes Thank Flag Link Wed Apr 14, 2010
Hi Dank,

Simple. Have your agent fill out a contract and present it to the seller. If you don't get a response in short order, move on to another house. Most short sale offers never make it to the closing table, and most short sale homes are not a good deal. But if you see one you like, make an offer and prepare to be very patient with absolutely no specific closing date in mind.

Good luck!

-Marc

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Web: http://www.marcpaolella.com
0 votes Thank Flag Link Tue Apr 13, 2010
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