Foreclosure in 97005>Question Details

Richard Ennis, Other/Just Looking in 97005

Is the listed short sale price the true price or beginning bid price?

Asked by Richard Ennis, 97005 Fri Feb 20, 2009

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6
I will go a little sideways here. If its a private label loan, beware. The lender (alleged) is counting the days to foreclosure where modifications and short sales do not exist. Their is no chance of closing in most cases.

(But yeah they do, really , I know....I mean...)

Stop! They do not! I'm sorry but three closed for every one thousand short listing offered? Please. Wait for trustee sale.

expert.witness@live.com
1 vote Thank Flag Link Thu Apr 8, 2010
The Listing price for a Home should be determined thru a Competitive Market Analysis which takes into account the values around the particular Short Sale. The type of Loan that the Bank has on the Listing can have relevance to what they may be willing to take for that home. For example a 100% Loan on 100k could cause the Bank to either raise the price above the 100% to cover fee's or lower it depending upon the urgency to sell.
Flag Tue Sep 17, 2013
This is a great question, and the answer varies unfortunately. Basically in order to start the short sale process the seller has to have an offer on the table. In cases where the market is very slow they may have drastic price reductions in order to get an offer in before foreclosure. It's in their best interest, once the short sale process starts and their is an offer on the table the bank often postpones the foreclosure date, for the negotiation process.
The price of the home only suggests what people are willing to pay (i.e. no buyers/demand means a lower price) it has very little to do with what the bank is actually willing to sell the home for. Although the bank will take into account market time, and demand into what they're willing to except in a short sale.

When you're looking at a bank owned property, make sure someone gets in contact with the listing agent, often if you submit an offer much lower then the asking price it is outright rejected, don't expect to get more then about 5% less. Often even less then that because you run into multiple offer situations, especially if it's a good deal. twice recently I went to submit an offer only to find out their were 3 or 4 other offers, at or above list price.

Jason H. Gomes
Prudential NW Properties
Greater Portland Area
Cell: 503.608.8785
Desk: 503.350.7378
0 votes Thank Flag Link Fri Jun 5, 2009
The short sale value in most cases is going to be what the home is worth in a 30 day closing and while very few people have the magic # there is an algorithm that we have and use. We plug in about 25 variables and this tells us about what the bank will take.

Provided it is about 80% of the amount of money the bank is owed and they will make 1 penny more NET after closing costs by selling than foreclosing than they will write the loan down and sell it. Having said that you have to deal with JR liens and all of that and the agents better damn well know what they are doing or else it will never ever happen.

Give us a hoe you are looking at and let us have at it. A short sale done right should get you a great value on the property. I hope that all helps!!

Regards;

Dirk Knudsen
Re/Max Hall of Fame
Re/Max Metro Gold
Web Reference: http://www.theknudsens.com
0 votes Thank Flag Link Fri Feb 20, 2009
The listed price on a short sale is neither a minimum bid nor the "true" or only acceptable price.
The listed price on a short sale is the price the listing agent and seller feel will bring in an offer on that particular house. Just like any other home that is for sale, if no offer comes in within a reasonable amount of time, the price should be lowered until it reaches the point that buyers in the market view it as a good value. The complicated thing about short sales is once an offer comes in and is accepted by the seller, it needs to be approved by the lender(s) who have liens on the property. In order for that to happen, the net proceeds from the sale have to meet certain criteria or the lender won't agree to the sale and the home will usually end up in foreclosure.
All that to say, there is no guarantee the lender(s) will approve a sale for the listed price unless it is in their best interest to do so.

Ann
0 votes Thank Flag Link Fri Feb 20, 2009
It really depends. Many agents don't know what they are doing and price the property at what they think is fair and then send it in to the bank with no real idea of where the bank is out. A savy agent will be in close contact with the bank and the asset manager. I have a short sale listing right now where I speak to the asset manager every week and she decides what the price will be. I got an offer and it was accepted in one day.
0 votes Thank Flag Link Fri Feb 20, 2009
The list price has nothing to do with the bid price at foreclosure. The list price is the price the listing agent came up to sell property. It may be a good list price that a lender may accept or it may be out of line being too low or too high. It is best to have a buyers agent that understands the process so that you are aware of process and likely hood of acceptance and time frame involved.
0 votes Thank Flag Link Fri Feb 20, 2009
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