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Lauren, Renter in New York, NY

buying a short sale-owes 170, asking 230. comps are all over the place, $150-250. What would a bank be accept?

Asked by Lauren, New York, NY Mon Apr 22, 2013

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7
Lauren,

As others have noted, it's unclear that this will even be treated as a short sale by your lender. Before getting too far into this and becoming disappointed, I would recommend the importance of gathering additional information.

1. Is the owner's lender willing to work with them on a short sale?

2. Have they begun the application process?

3. Where is the seller in the "short sale" process?

4. Are they being supported by an attorney in this process?

There is a big "red flag" here....owing $170 and asking $230 doesn't have the earmarks of a short sale.

Proceed with caution.

Bill
0 votes Thank Flag Link Tue Apr 23, 2013
Hi Lauren,

As the other posters pointed out, if the owner only owes $170K on the first mortgage, there must be a second mortgage or this would not be a short sale. Ask your realtor what the CMA or BPO price is that they calculated for this listing. In a Short Sale, the banks are generally willing to accept 75%-80% of market value. I hope this helps. Good luck.

Maureen McEnroe
Licensed Real Estate Broker
Prudential Joyce realty
Accredited Short Sale Designation
Luxury Distressed Property Designation
914 588 1873
0 votes Thank Flag Link Mon Apr 22, 2013
if they only owe 170 and they are asking 230... why/how is that a short sale? Is there another loan?
0 votes Thank Flag Link Mon Apr 22, 2013
Unfortunately none of us can accurately speak for the lender, as none of us really knows what will be accepted; what is your agent advising...
0 votes Thank Flag Link Mon Apr 22, 2013
Hi Lauren:
Short Sales are tough. You should ask your realtor. And have patience
Good Luck with it
Linda
0 votes Thank Flag Link Mon Apr 22, 2013
Tough question to answer but my question really is if they only owe 170 and the listing price is 230 then how is it a short sale?
0 votes Thank Flag Link Mon Apr 22, 2013
Lauren,

The bank will make assignments for BPO's (broker price opinions) to get a feel for market value when they have a contract and ALL paperwork in hand. There is no way to predict.

If you are being represented by a Realtor, ask him/her to do a full Comparative Market Analysis for you and to be specific to immediate neighborhood and only sales within the last 90 days.

Most of all, be patient.
0 votes Thank Flag Link Mon Apr 22, 2013
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