Home Buying in Oceanport>Question Details

Edouglas16, Home Buyer in Oceanport, NJ

Seller signed contract - said short-sale was approved. Now they say the bank countered. What are my options? Will documentation be provided 4 counter?

Asked by Edouglas16, Oceanport, NJ Fri Oct 16, 2009

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6
Ask for the documentation. Usually these banks respond via email and a lot is done "verbally" before it's finalized. The bank has every right to counter, it's their money on the line. If you're trying to get a fabulous deal (like offering 15 grand on something that's worth 80k), chances are you will not get it that cheap... and if that's the kind of deal you're looking for, then you need to seek out REOs not Short Sales ;)
0 votes Thank Flag Link Wed Mar 17, 2010
Get it in writing; The Bank will always want what the seller's owe deal or no deal! I never heard of a short sale with out a problem like you have here!
0 votes Thank Flag Link Fri Dec 4, 2009
Many short sales are approved without a figure of what the bank wants to close the deal. Once the process begins and the sellers accept a contract it goes to the bank for approval. They may order a BPO (Broker Price Opinion) or do an actual appraisal on the property. When they counter, they are basing that counter on the information provided in either of those reports.
The bank normally does not provide documentation in support of their counter. You can either meet their demands or walk away.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sat Oct 17, 2009
Banks will often issue counter offers in short sales. You options are to either accept, reject or offer your own counter. Documentation is usually not provided by the bank on a counter offer.

Laura Giannotta
Keller Williams Atlantic Shore
0 votes Thank Flag Link Sat Oct 17, 2009
Ed,

None of us have any way of knowing what the banks will do next, but you would think that if you presented a solid offer, they would agree in an effott to avoid the expenses of foreclsoure. Go figure.

Not intimatey knowing the situation, I can only guess that the "approved' short sale amount was more than 3 months old. and if since that that time the neighorhood appreciatred in value, they would present a counter. In a depreciating neighborhood, one would hope they'd be happy to have a well qualified buyer and acdept the offer.

Your Realtor should be the one providing the documentation to support your offer, but if he bank perisists, move on as with todya's inentory opportunities are abudant. If this property is meant to be it will happen. If not, there are other that will prevail.

Love and Peace,
Francesca, ePro, SRES
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Fri Oct 16, 2009
The first step in the approval is for the seller to sign and then it goes on to the bank. What you've received now is the bank's response and if it has come to you in a reasonable timeframe, consider yourself lucky. The bank's counter is likely what it is willing to accept at this point - you can accept it. If you do not, you may be done, or your response may throw you back into a further review with the bank.

If you reach an agreement then the terms of the contract will be adjusted to reflect the agreed upon price and terms.

I've been involved in a few short sales - and each one has been different, however the one thing they have had in common is that they are anything but "short" in duration. Talk to your agent and your attorney. And as has been reinforced on many posts on the topic, good communication among the parties is a great help.

Good luck to you!
Best,
Jeannie Feenick
"Unwavering Commtiment to Service"
Search the MLS at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Oct 16, 2009
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