Any decent real estate agent will not list a property so low that a lender will never agree to a full price offer. That is just a waste of everyone's time, and the agent's money. We never know, though. Every short sale is different and can depend on the lenders current inventory of repossessed properties or even where they are in their accounting cycles.
Short sales canbe a great bargain, but you have to be patient.
In regards to the short sale aspect, the list price is determined by the seller. A short sale must be approved by the bank. If the numbers don't work for the bank, they'll reject your contract.
Selling a home short or with 3rd party approval is often frustrating for the buyer and the seller and more often than not does not close.
If you have any other questions, please feel free to contact me.
approval. A seller has to apply for a short sale "package" from their lender. (at least in Ohio) The problem arises when there is more than one mortgage on the property and by different lenders. The second mortgage "holder " does not have to agree (sign off) on an accepted short sale offer for the property even if the 1st mortgage holder agrees to the short sale price. That is where "things" can get tied up for weeks or longer. I have one myself in process (or lack of) that is going on 4 months now and it is currently in court sitting on a Judge's lap.
The buyer's agents needs to make sure that the seller has been accepted as a short sale by the bank or mortgage company.
Lenn Harley, Homefinders.com, 800-711-7988.
Their bank, on the other hand, has an interest in extending the amount of time that owner pays their mortgage. The bank may or may not be interested in actually selling the house through this process. I would ask the owners, and thier agent if the bank has signed the listing agreement. You need to know if the bank is on board with the whole short sale process, and if so you need to ask why it takes them 2 or 3 months to give buyers an answere when they make an offer. For comparison sake, banks can give an answer on a property they own in 2 or 3 days.
Many agents are starting to think the local MLSs should require that a bank sign a listing agreement on a short sale before it is able to be listed on the MLS. This would force owners and banks to come to some sort of an agreement on a plan to sell the house before buyers get involved. If we did this, many of those homes would never make it on the market, and the ones that did would actually be for sale. Buyers would actually be willing to offer a little higher on houses like that where they expect to get an answer on an offer in a reasonable time period.
As for right now, buyers need to proceed with caution when dealing with short sales.
Follow the link below to find out some of the real truths surrounding short-sales.