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The only thing--the ONLY thing--that matters is: How much is the house worth in its present condition? That's it. That's all. Let's repeat: What is the house worth in its present condition?
Then you pay no more than that amount. You probably should offer less. Your Realtor can advise you.
As for a "respectful offer": Forget "respectful." Respectful to whom? The seller? The seller won't see a penny from the short sale, regardless of the final price. Respectful to the bank? No need for that. For them it's a business transaction. The only thing you need to be respectful of is your money--the amount you pay. Respect yourself.
Hope that helps.
One other thing you may want to keep in mind. The bank servicers receive payments along the way for servicing so they slow things down a little.
I see consumers all over the internet chomping at the bit to buy a short sale.......and I think to myself - they don't have a clue as to the meaning and process.
Many see the term short sale, and think: "Bargain" !
I see the term short sale and think: "headache"!
Sorry Tom, but I don't think you understand what a short sale is all about. I just closed one that took over 3 months to close because of various problems. At one point my buyer asked, "Don't these people want to sell?" I replied, "Of course not, they have to sell but no seller in a short sale wants to sell."
Different banks have different processes and policies for their short sales, so having a knowledgeable agent on your side to assist your negotiations is very important to successfully getting to the closing table.
B.Sc.(Honours), REALTORÂ®, REOS
CENTURY 21 Professional Group, Inc.
7575 Dr. Phillips Blvd. Suite 170 Orlando FL 32819
Homes will sell at Market Value, irrelevant of how much is owed. The bank will simply write it off as a loss, but they will not sell for less than Market Value....taking in consideration condition, of course.
Charles Rutenberg Realty
Is the home showing deferred maintenance?
Has the home been damaged?
Is the systems in the home at end-of-life?
What do the comps indicate?
What is your ARV calculation?
Who owns the mortgage?
When was the mortgage granted? (a 2001 mortgage is quite different than a 2006 mortgage)
How many lenders exist?
How for into the foreclosure process is the home?
Has the home been pre-approved for a short sale prior to your interest?
Is the owner in default at this time?
How was the listing price reached?
How long has the home been listed for sale?
Has the owner truly committed to selling the home?
Do you know their end game?
Who is going to engage the bank or their surrogate?
Make offer based on historic value bracket of that lender that coincides with the time in which the lender will be evaluating your offer. Some will evaluate in 30 days, others can take longer that 6 months.
Without a bit of research you are truly flying blind.
"% of short sale" reflects you are attempting to match a short sale with conventions that apply to traditional sales. That, you will discover, will not serve you well. Your focus is on the wrong subject and with the wrong intent.
Best of success in buying your Florida real estate
You should therefore make your offer based on a Comparative Market Analysis that your sales agent should be able to provide.
The balance owed by the seller is not the primary consideration for your offer since the lender may forgive a significant portion of what's owed.
Hope this helps.
I hope this is helpful. Please e-mail me directly email@example.com, or give me a call 407-832-4650 if I can help you further.