What is the asking price? 75k seems very aggressive; but without knowing the sale price; it's hard to say.
The reason a abnk would accept a short is IF - they can recover more than a foreclosure on the property would. Most short sales are NOT approved and the property goes to foreclosure.
Having an agent experianced ini short sale is VERY important. There are many questions to ask and most agents do not really know where to begin.
For more advice/questions - feel free to contact me directly.
I've been meaning to once and for all put an end to Short Sale discussions. I did this for you, but also for all my clients, so I wouldn't have to spend an hour explaining it. It took me 3 hours to write, so hopefully you will like it.
Bottom line, only 1 in 20 Short Sales close, and those are almost always near list price. So $75,000 off? Well it depends if it was overpriced by $100,000, but most likely No way in Hell.
Hope you like the post. If you do, sign up.
First off; From the research I have seen coupled with my own experiance; most "Short Sales" that are advertised as such - the listing agent and sellers have not even contacted the bank and asked if they would even consider a short sale. - NOT A SHORT SALE.
For a bank to even consider a short sale; there must be a REAL hardship. Hardships does not mean - want to move and can't sell for full price- does not mean I can't flip it or want to move to Florida to retire or take a new job. It means - I was layed off - my spouse died - I was in a major accident and cant work for a year.
IF the seller gets an "OK" - it is just an "OK" we will "consider" a short sale. Then 3 months later you submit an offer and bank decides yeah or nay. It doesn't matter what they said initially! Why? THEY ARE THE BANK.
As I said before; the only reason they would accept less is if it will cost less than a foreclosure.
Also; you need to be pretty sure that the 1st lien holder wants to get all their money. In a foreclosure - the 2nd lien holder often gets zero; whiole the 1st lien holder gets most, if not all.
In a short sale; if the 1st gets 100% and the 2nd will get at least 5-10%; you have a good chance of getting your offer accepted.
I will showcase exact stats on my blog here shortly. But only 1 in 20 closed when I last did my research. And to try to get $75,000 below an already low "fake" price, is a pipedream.
But Deb, some buyer agents will sign you up... why? Because they will let you have fun trying to lowball and hope that you eventually come to your senses, and they get the deal.
A lot depends on the listing agent who prepared the pacakage for the bank. If it is complete normally you will here with in 45 days.
Can you explain a little more about your experience with short sales? I would love to hear your experience.
I have not seen any that are FAKE(!). I have a theory about why banks are not accepting all of the them - or sometimes with relatively little loss- but I have seen several, some up to 100K loss to the bank go through.
I say: you never know until you ask... BUT do be prepared to wait 2-3 months for an answer. short sales are not for the impatient.