Home Buying in Barnegat>Question Details

Mike Rogers, Home Buyer in Orlando, FL

In the state of New Jersey can a bank, [BANK OF AMERICA] come back with a counter offer on a short sale that is higher then the asking price?

Asked by Mike Rogers, Orlando, FL Sun Oct 17, 2010

Help the community by answering this question:

Answers

12
BEST ANSWER
Hello MIke,

Yes the bank can. I just had this happen to a home I had listed for $319,000. The purchaser offered $318000. the bank countered at $330,000 after the two independent appraisals were completed for the bank, but after much damage was found from the home inspection the $330,000 was renegotiated again to $323000.
2 votes Thank Flag Link Sun Oct 17, 2010
Absolutely if they feel the house was underpriced. The idea of a short sale is that the owner and their agent set a price that they think will make it sell. The owner doesn't get any money out of it anyway, so they really don't care. The Bank will then do it's own investigating of value and see if it was priced too low to begin with.
2 votes Thank Flag Link Sun Oct 17, 2010
Yes they can, and it happens more often than you would think. Often short sales are allowed to be listed at values lower than fair market, and counters from the bank are becoming more of a prevalent thing.
2 votes Thank Flag Link Sun Oct 17, 2010
yes, and common. the bank didnt sign the listing agreement. The seller frankly doesnt care how much the bank loses they listed the house for sale at a price they felt would bring offers the bank would consider. As mentioned you may need inspection to show why your offer is fair.
good luck
1 vote Thank Flag Link Sun Oct 17, 2010
...and sometimes the agent will either set or reduce the price to a point that it will draw action - it might need to go under market to get there. The bank will base its response on an analysis of market value (BPO). I've run into this a time or two and I know it is frustrating and counter-intuitive, but until the bank responds to a written offer, you really don't know where they stand as to value and what they will accept.

A question I always ask is whether the bank has resonded to an offer as of yet - more times than not, the listing agent will say, bank will not oppine unless there is an offer to respond to.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun Jun 26, 2011
Can anyone help? I just recently got divorced and we are underwater on our mortgage (condo) by about 30K. My ex is living there and I am not (but still paying). We have been arguing about the SS process because he does not want to damage his credit...finally he is agreeing to selling short BUT refuses to stop paying mortgage payments during the process. Our lender is BOA...any ideas of the best way to go about this with them?
0 votes Thank Flag Link Tue Jun 21, 2011
Hi Mike , as you can see from the responses below and from my experience the answer is yes.Although
I did attended a Bank of America seminar to inform Realtors on their Short Sale process .They instructed us to as part of submitting the short sale package the Listing agent should include support information for a signed offer the Listing Agent feels is reflective of market conditions.
In practical terms I am sure that difficult to get lower price offers accepted. But Bank of America stated in that seminar that they accept on avg. 90% of the" Market Price" . The listing agent should provide supporting info to show the offer is sound.
Web Reference: http://robertsuarez.net
0 votes Thank Flag Link Mon Oct 18, 2010
Yes, they can. The bank is the beneficiary from the sale on a short sale. The homeowners walk away with nothing. They are typically taking less than the balance owed on the loan, so they are in charge. They may not have authorized the listing price, they may have authorized it and had an appraisal done which determined the house was worth more.
Bank of America is not an easy bank to work out a short sale with by any means. Get educated. Find out if there is a second lien on the property. Find out how far into the process the buyers are. Search the questions in Trulia and you will see a lot of the pitfalls of buying a short sale.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Oct 18, 2010
Mike
In truth the bank does not have to accept any offer that does not pay off the full amount of what is owed on the mortgage. They accept short sale offers on the idea that some loss now might be better than a potentially larger loss later with a foreclosure. Often what they will settle for is less a function of what is owed and more what they believe the home is worth today from the BPO. The bank, in this case Bank of America might be the servicer and not the owner of the mortgage. The owner could be an investor with their own perception of what they want.
0 votes Thank Flag Link Sun Oct 17, 2010
Absolutely !!! I listed a short sale at $200K, but the bank wanted $220K, per the investors, based on the BPO (brokers price opinion which is the banks formal comparative market analysis and is based on local sold comparatives) vs. what the owner owed on the house.
Not uncommon at all.
0 votes Thank Flag Link Sun Oct 17, 2010
Mike

Yes the any Bank in any state can counter the Bank did not set the price of the home or listed price, Agents and Sellers set the listed price the Bank does not get into it at all until there is an offer on the home. Once this happens there is no short sale it is just a listed home.

Once the offer is submitted with a complete package for the short sale does it begin this is when the Bank will order a BPO (Broker Price Opinion) or even and appraisal. If you want to learn all about Short Sales I reccomend you read Should I short Sell my Home! IT will teach you about about Short Sales and how they work

Your agent should have told you that this was possible before you entered into the ageement on the Short Sale home.

TIm Robbins

Exclusive Buyers Broker

Better Homes Realty
0 votes Thank Flag Link Sun Oct 17, 2010
Yes they can. The REALTOR sets the listing price on a short sale based on comparable properties, not the bank. The listing agent can provide the bank comps and ask for another Buyers Price Opinion (BPO) if the price is in line with comps.

Laura Giannotta
Keller Williams Realty Atlantic Shore
0 votes Thank Flag Link Sun Oct 17, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer