If the listing agent has experience chances of a short sale closing are actually pretty good. Unfortunately, in my experience it happens a lot that buyer's agents are steering buyers away from Short Sale listings because of the long approval process (usually anywhere from 45 to 60 days) and the uncertainties whether the transaction will get approved or not. In some cases this could be a disservice to buyers, especially if the buyers are not time pressed to purchase a home. Many times, short sale listings are better maintained because the sellers still have sense of responsibility and with to cooperate with their debtors to avoid foreclosure.
Just to give you an idea on what kind of spreads banks are shorting: I just got a short sale approved where the bank accepted a sale price of $220,000 on a property which was mortgaged to $316,000 in 2005. This is over $109,200.00 loss to the bank.
No, short sales are not a slam-dunk by all means, however banks have gotten wiser and if the property is priced correctly and the agents involved have a clue what they are doing then you have a good shot closing it.
Christoph K. Schweiger
Your real estate agent should be savvy enough to work with the listing agent to determine if it's even worth your agent's and your time to bother with it. If the listing agent hasn't priced it right, and your agent doesn't know what market value should be, then you'll miss the mark and it will result in a counter offer from the bank.
The goal of the listing agent is to advise his/her client to accept a contract that everyone agrees will make it through the bank on the first try.
The original loan amount is not a factor,
Every short sale is diffent, Listing agent has to be on top of things . I have seen seller getting a short sale apprasal and put very nice package (fact, home for sale, inventory on hand, asking price, etc by the listing agent) The listing agent has to be very proactive, there is no garantees that it will close, however banks are now willing to take short sale instead of foreclosure. Short sales have always been part of real estate, except that right now, most home are on short sales, or foreclosure. Don't be afraid. Most people rather buy a short sale: seller still cares about condition of the home, than a foreclosure home: who knows what you buy.
Banks want to sell their properties even if it a short sale, some times is miscommunication and perserverance.
Good look talk to your realtor, if she/he need the package let me know. She/he just has to modify it accordingly.
If you get lucky, expect to pay 70% of the appraisal price..
RE/MAX Fine Properties