Home Buying in 27870>Question Details

Tklynch811, Home Buyer in Oakpark, VA

In a short sale is there a standard percentage the banks agree to for a distressed mortgage?

Asked by Tklynch811, Oakpark, VA Sat Jun 13, 2009

We are first time home buyers and love a house that is a short sale. We have a budget and are trying to find out if there is a standard percentage banks agree to lose on a short sale, so we can put a strong offer in on the property.

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No, make sure your agent pulls comps as the short sale lender will be doing an appraisal to obtain true market value of the home. If the list price is to low, you can be sure the bank will come back with a higher counter than the list price.

Of course we all want to get the best deal possible on a home, just keep in mind you will need patience to close a short sale transaction!
0 votes Thank Flag Link Tue Mar 25, 2014
NO. As a buyer you have to be careful not to get stuck in this mind set. Banks do not set process on short sales. The biggest problem and cause of rejected short sales is the sales price is too low. You need to have your buyer agent assess what the home is worth in todays market and base your offer on that, never by deducting a percentage from an asking price.
0 votes Thank Flag Link Tue Mar 25, 2014
No, Every lender is different, but they will go back to each high offer and request the highest and best even after you gave your highest offer. For ways to work with this situation you need an experienced short sale agent . I have several designations and experience in that area.
0 votes Thank Flag Link Tue Mar 25, 2014
NO. Since the market varies by neighborhood , and house prices vary by location, condition, size, etc, different homes have different values, and a lender will take this variability into consideration in assessing an offer.
0 votes Thank Flag Link Sat Jun 13, 2009
Hi TK,
Good question. Actually, no - there's no standard they're willing to lose by. That would be considered price fixing, or could be perceived that way, which is unlawful according to the anti-trust laws. The price is ALWAYS set by the market. If you're not yet working with a buyer's agent, I would suggest you agree to be represented by one. They'll have the most knowledge and the best negotiating skills to get you the property at the lowest price possible.
Good luck!
0 votes Thank Flag Link Sat Jun 13, 2009
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