To agent who posted this link:
In Virginia real estate agents must be affiliated with a broker AND the broker's name and address must be disclosed on all websites and in advertising. Your website is not doing that.
If it is a VA loan that is being short sold they will accept up to 88% net of the BPO value. (A mini appraisal)
FHA minimum net proceeds also include Length of Time From Date of Approval:
- Less than 30 days = 88% 30-60 days = 86% 61+ days = 84%.
Conventional is typically up to 81% ("Up to" is the optional phrase here)
So, the net proceeds that the lender needs to receive at closing MUST be no less than the percentages listed above of the BPO value, which is referenced on the HUD. This means that you MUST ensure that everything in the transaction that will be paid (i.e. Realtor commissions, closing costs, liens, judgments, seller incentives, prorated taxed, etc.) has to be accounted for before reaching the appropriate threshold.
The other factor is the BPO value. Have your Realtor do their own BPO and pull the type of loan it is on the MLS. We have it hear in Virginia Beach on Real List so I don't know if your Realtor has access to that info...if not then tell him to ask the listing agent what type of loan it is. Once you have that info you will have a pretty good indication of what they will accept based on the thresholds above, but then your type of loan will have an impact as well. For example Fannie Mae usually wont pay closing costs if the purchaser is getting a conventional loan. Don't know why...just what they do. FHA to FHA will only pay 1%. 99 out of 100 times the banks will counter unless you are at their BPO value with your current offer. Unfortunately a lot of agents will list their properties at ridiculously low prices in order to get an offer...it's really just throwing mud on the wall.
Bottom line there is a lot of mitigating factors in the process. I do a tremendous amount of short sales and have never had one that was the same. I've closed one in 32 days and I have worked one for 9 months. I will say this...it is trending to become easier because now asset managers are getting involved in loss mitigation and are involving me in the pricing of the property. Hope this helps and let me know if I can be of assistance. My website also has good info to read. Speaking of which I need to update it with the latest info!
If you chose to go un-represented and you submitted the offer directly to the listing agent, than the listing agent should be able to give you some of the answers. However, keep in mind that the listing agent represents the seller and cannot violate his/her fiduciary duty to the seller and the seller's lender. This is the nature of agency.
If you do not have an agent representing your best interests as a buyer, you may seek a legal advice from a real estate lawyer, although it will cost you some legal fees. If you hired a buyer agent, it would cost you nothing because the selling broker is compensated by the listing broker.
KELLER WILLIAMS REALTY
The question you need to answer is: Did I pay fair market value? If you got a smokin hot deal on the house compared to others that are for sale or have sold recently in that area - the bank is likely to deny the deal on the grounds that the seller sold the property for less than market value. It is possible that the seller may come back to you and ask you for more money to get the deal done - you don't have to give it to them but it is possible that the sale won't be approved.
You need to find out a lot of information about the short sale - how many loans, how short, is there a PMI company involved, when will the package be submitted, etc. Answers to these questions and the advice of a knowledgeable short sale agent will determine whether or not you should feel good about your prospect.
Good luck with your purchase.
Coldwell Banker Burnet
With all due respect, these are questions that you should have asked and had answered by your Buyer's Agent before you submitted an offer, not afterward.
Your first question is very hard to answer without knowing all of the details of the property and the transaction. Speak with your Buyer's Agent about that.
In regards to your second question, I also suggest you speak with your Buyer's Agent. But also read this post I wrote on the subject...
Real Estate Consultant/REALTOR(r)
Lisa Moroniak | REALTORÂ® | Service360Â°
SFR - Short Sale & Foreclosure Certified
Keller Williams Realty
Licensed in VA