Home Buying in Connecticut>Question Details

NewbuyerinCT, Home Buyer in Stamford, CT

Short sale: What is a "net number"

Asked by NewbuyerinCT, Stamford, CT Thu Jul 19, 2012

Hello,
The bank rejected our offer and said the "net number they will accept is..."
It might be obvious, sorry if this is a silly question. I googled and ended up more confused.

Can anyone help? What exactly does this mean?
Thanks,
Jen

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Answers

2
In a short sale situation when the lender refers to "the net" it is the amount left for them after ALL the costs of closing - ie realtor fees, seller concessions, legal fees, payoffs to junior lienholders, back taxes...etc.
Web Reference: http://www.homesbyminna.com
1 vote Thank Flag Link Mon Jul 30, 2012
If you wanted to Offer $200,000 and you will be paying your Closing Costs; you NET would be $200,000.
If you wanted to Offer $200,000 and you wanted the Seller to credit you, 6% for Closing Costs, your NET would $188,000.

The Bank is only concerned with the NET.

Good luck and may God bless
1 vote Thank Flag Link Thu Jul 19, 2012
Wow - thank you for the quick response!

I think I understand. To use our numbers, can you let me know if this makes sense?

The bank told us THEIR net number was 355K. We are paying closing costs, not them. So that means they would not accept less than 355K.

When dealing with short sales and a NET amount, has there been any success offering less and getting the bank to accept? Just wondering if I am wasting everyone's time or if I should go ahead and try it? We were thinking of midway between our offer and their net.

Sorry for all the questions - I'm still new and it feel like I'm learning a new language. Buying a home is hard enough..why do I have to love a short sale? :)
Flag Thu Jul 19, 2012
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