The bank is looking at the price, they look at hardship, taxes, leins, and the type of loan. If your price is not high enough the lender can reject it. They also require patience on the buyers side, as they can take 4 to 6 months.

Hi Kelly,

They look at the other terms also. But the reality of short sales is that unless a seller can prove hardship to the bank and is not upside down for not too large of an amount, the conditions on your offer will not make much of a difference.
Do you know how many lienholders are there? How much do they currently owe on the property? Is the seller on a position he/she can prove hardship? You should check these to try to figure out if you have a chance there.
Good luck on your search. Feel free to contact me if you have any other questions?


Regards,
Carla Rocha
Coldwell Banker Residential
954-895-7341

Kelly,

To acquire a home that is being offered as a short sale you need both the approval of the current owners and their loan company.

One of the reasons why it requires so long to get the bank approval is they need to make sure they can transfer to the new owner a clear title. This can sometimes be a difficult process when there are first and second loans, home inprovement loans, marital problems, liens, back taxes, etc.

The closing process for a short sale can span a period of from 4-6 months.

GREAT QUESTION: Bank takes many issues in consideration when you place an offer, includes lender approval letter, closing date, seller concessions, down payment, many other concerns.

Kelly, as an 30 year veteran of real estate in Florida, and as of late doing many short sales, let me tell you what I know.

First of all, the bid depends on whether it is a Freddie Mac or Fannie Mae loan. Unbeknownst to many agents who do not work with short sales, these are government loans and have different requirements than other loans.

If it is a Freddie Mac or Fannie Mae loan, it would be to your advantage to know this as they are only allowed a certain percentage of 'non performing loans' ie: short sales and foreclosures, in their portfolio's or they can not borrow more money from the Fed's, which is where they MAKE their money - by loaning out money at a higher rate than they get from the Fed.

Having said that, a short sale is also looked at by the investors, lender and the PMI company if there is one, to determine the loss of the offer against the cost of a foreclosure.

If I were you, I would contact an agent in your area that is experienced in short sales, foreclosures, reo's, for sale by owners, auctions, and regular MLS deals and pick the one that is the best deal for you. Why limit your options when it is a buyers market, rates are low, and if you are a first time homeowner (or haven't owned a home in the last 3 yrs) there are great tax incentives available for you to buy?

If you need a recommendation on an agent in your area, let me know I've worked in Florida for 30 years and deal with buyers or sellers that I get via internet and have to refer out to a reputable agent in another area, so I can give you a few names to help you out.

Best wishes and I hope this helped.

Kelly,
The bank will look at more than the price when considering a short sale. They will want to see a pre-approval letter from the buyers lender, or if you are paying cash, the proof of funds. They also have to approve the short sale, meaning that the seller has to prove a hardship. When the contract is submitted so are all the documents that the seller has to provide to the bank to prove that a short sale is necessary. It can be a long process just to find out if the bank will approve the short sale and the price. In many cases it works out fine, and the buyer gets a property for a good price. Each short sale is different though...some have already been pre-approved and may not take as long to close.

I hope you found this to be helpful, but if you have any other questions you can contact me.

Best regards,
Stefanie Cohen
Prudential Florida Realty
954-547-9203
Scohen77@aol.com

Kelly,
Up untill a few months ago, It has been my experience that When the banks look at the short sale offers the single most important item in the contract was the bottom line price( i.e. the price and whether or not the buyer is asking for seller contributions). Lately they are also taking in consideration whether the offers are cash or financed. When sendinga short sale offer to banks, most of them require either a closing statement or a netsheet form, that will allow them to better understand how much they are going to net from the sale. Bare in mind that items like delinquent taxes, association fees and any other delinquent liens would reduce the amount the bank "nets" are EXTREMELY important and those items are not part of the contract.....

ANyway, our office is in Cooper city as well, if you are not working with a realtor feel free to contact me. If you are, I'll be glad to talk to your realtor and answer any questions he/she may have - Negotiating short sales for my clients and other realtors are an important part of my business(at least since October 2006) my email is jflasterstein@gmail.com

Hello Kelly, Patients is needed when bidding on a repo. It takes time to get a response from the Lender/Bank. At the same time. You can get a good deal in many cases. Having your funds in place and knowing the condition of the property is important also. I always recommend getting a pest & dry-rot inspection as the underneath of the home and the structural/bones are the most important thing to know about a home. Call if you need further help finding an agent in your area. Ronda

daer home buying, the bank will look at all the terms of the contract. They cannot ascertain the bottom line without looking at all aspects. The bank will more than likely respond with a form telling you that home inspections are fine, but that they are not fixing anything you find wrong. the bank will look at the timelines you have, they will look at your pre qual letter from your lender. The price is important, but the bottom line is where they will focus their attention.
Hope this helps,
Patrick