Hello,

I'm assuming when you put in your offer, a pre-approval letter was requested (if you are financing the new property). Remember that your pre-approval will expire after some time has gone by. Be sure to keep in contact with your lender while you are waiting. You'll find that you tend to wait and wait for the acceptance but once accepted, the seller's lender expects you to close quickly.

New laws have just gone into place requiring waiting periods after disclosures have been sent to you, appraisals have been completed and if the APR changes by more than .125%. You surely don't want to be stuck with a penatty for not closing on time.

Crystal Beard
Ambient Home Lending http://www.ambientlending.com 50% off Special ~ See website for details
Toll Free 877-777-9763 (lending throughout Oregon)

Dear Confused Buyer -- since you're in an offer, albeit a short sale, you are being represented by a licensed agent. It's not ethicial, IMHO, to answer these questions while you are being represented by an agent in a home purchase.

That being said, short sales are nasty. My office doesn't do them, and your question is the VERY reasony why. Buyers wait, and wait . . . maybe other offers are coming in, maybe the offers submitted won't even be negotiated.

Maybe the banks want to wait, and stall . . . there are reasons for this. I've referenced my blog post: "Banks Become Chefs . . . and Cook the Books," for your reading pleasure!

Carla Muss-Jacobs, Broker/Owner
EBA Portland, LLC
Exclusive Buyers' Agent
Assisting Buyers in Metro Portland since 1999 http://www.EBAPortland.com

Standard RMLS forms should give you the right to withdraw your offer. Remax forms (and probably other brokerages) give that right as well.

If you want to reneotiate the price, consider withdrawing the current offer and tendering a new one. I also suggest that people making offers on short sale properties justify their offering price by including comps of three similar properties that recently sold. Remember, what you're trying to do is paint a picture to some clerk out there in la-la land, probably a state across the country, who has to make a decision and has no idea what properties are going for out here. The easier you make it for them, the quicker your offer will be responded to.

I wouldn't wait four months, either, unless it's a really cherry property.

There are so many variables in buying a short sale. I am bias working for a Arbor Homes, but I would say that if you want a home that has never been lived in, warranties and a quick close, I would purchase a new home. Let me know what area and price point you are in and I can guide your agent to anyone of our 11 neighborhoods. I look forward to speaking with you!

Christopher Korenthal
503-888-0133

Chris, thanks. Yes, for this short sale, it is not accepted by the lender yet. My agent said if we want to change the price. We have to withdraw the current one, go through the process from the beginning. There is a risk the seller may not submit our offer any more.

Time is not important for us, since we have a house now. This 2nd house would be an upgrade. Great price and good house is more important. I'm just wondering if it's possible to re-negotiate the price without starting from scratch, suppose the bank accepts our offer.

Confusedbuyer~

What advice did your agent give you? I guess the important question for you is what's more important? Time or a great price? If I understand your post correctly, your offer has not been accepted yet by the lender.

If you have reservations about the price you initially offered, it's relative value to the declining market, and concerns about the square footage - my advice would be... don't get too attached to your offer. This might be a good time to change direction.

According to the Portland MLS, the median price in the Portland Metro area declined 13.3% July '08 v. July'09. That trend will not end in the near term... Where's the bottom? Who knows; we're not there yet.

As Lana posted, short-sales can be a great opportunity - sometimes. They can also be very very frustrating and in a declining market you may very well overpay.

Best of Luck~

Chris Aldridge
RE/MAX equity group
Lake Oswego http://www.ChrisAldridge.com

Lana, thanks for the answer.
Suppose the bank accept our original price, we decide to proceed with buying, and during the loan process, the appraisal shows that the house value is less than the purchasing price, do you think it's possible to re-neigotiate the price at this point, and without starting over all again?
The catch is that the house size shown in the county record is wrong (200 square feet larger), so until we proceed to the appraisal point, bank will still use the wrong fact to estimate the house's market value.

Also while it's in the short sale process, can the bank foreclose the house without any decision on the short sale?

That is why short sales are so difficult. I hope you had notice written in your offer that you have the ability to back out and write offers on a home with out a short sale should something else come up you are more interested in. Many times the best deal you get is on a short sale...if you have the patience to wait it out AND the property isnt forclosed on before you get your chance to buy it. IF the bank accepts your original price are you sure you want to go thru MONTHS of waiting again to re-negotiate? I dont think you will want to. That is again, why short sales are so difficult!