I work with Countrywide all the time as an investor. I would be happy to give you some tips if you would like for free! Just go to my site. Good Luck
Seattle Real Estate
You should be picking up one clear and consistent point here. There are no 'rules' in the game of short-sale buying. Most times the process begins without any guidance from the ultimate decision maker, the lender. So as things progress it may appear as though it is a moving target. Not only does the acceptable price bceome subject to change but even the deadlines can move because the lender controls when the game ends. Keep in mind they or more importantly the underlying investor are taking the loss. Trying to mitigate the loss is their objective and who can blame them. There are techniques and questions asked in the beginning that may help improve your success but in the end it's a crap shoot. Roll the dice enough time and you're bound to win. Just make sure the price is worth your efforts.
The agents stating that you should submit another offer are absolutely right. The price discrepancy you mention is pretty much irrelevant, and it is legal. The bank will wait until the bitter end (just prior to foreclosure) before accepting a low offer. In many cases the bank will buy their own foreclosure and re-list the property to try and realize their price rather than sell the property too cheap. This shouldn't stop you from making an offer or multiple offers, if you have the patience to wait them out.
Hang tough and good luck.
In a Short Sale the lien holder for the seller has agreed to take less than what the seller owes on the home. The seller and listing agent have been told by the lein holder to get an offer. They do not specify what the listing price nor the offer should be, they depend on the seller and agent to bring offers to the table.
Once an offer is received the lien holder will order a BPO (Broker Price Opinion). This is done by an agent the lender pays a fee to determine what the market value should be. If the lien holder obtained 3 different BPO's, they would see 3 different prices.
The lien holder then counters if the potiential buyer's price is too low.
Whether it is legal or not , this is how a short sale works. Some lendere take a week to return a counter, however will take longer than 3 weeks. Most are vry difficult and can take a long time to get to close. Forecloser auctions can be delayed by the negotiators for the lein holder so an offer can be negotiated.
If the home you have an offer for does not receive any further offers, your final offer can still be negotiated. The lein holder will not see the home go tforeclosure with an offer on the table, regardless of whether it is what the BPO was or not.
Convince both your agent and the listing agent to resubmit your offer and I recommend that you go to your highest price, tell them to submit it to the lien holder with a cover letter that says, in the event you they not receive the 375K price to please reconsider your final offer. I just closed one exactly like this and it will work if you are patient. Ours took 4 months.
Again, this assumes that no other higher offers are sent to the lender. Find out when or if the auction is scheduled. If it is not for several months, it may be a long wait. If it is comming soon, then you will have a better chance.
Sometimes short sale homes are offered at a price without knowing that the lender or mortgage holder will actually accept that much of a short fall in the payoff. The good news is that your short sale offer will probably go through if the bank has identified a number they will accept. (80% of short sales do not work out before foreclosure). If you are willing to pay the price, looks like you have a deal.
Keep in mind that on a short sale you may be looking at a long time before closing. I would go ahead and resubmit your offer at $340 and see what they say. What is the worst that can happen?
What the bank wants is irrelevant. What another buyer is willing to pay is the only consideration as to whether or not you will get it at the price you offer. The bank may take it and try to sell it themselves. If you really like it, and can wait, you may get it cheaper if you have the patience.
Resubmit your offer determine if bank will accept it. If not keep looking.
Short sales and foreclosures always have drama.
Dallas Real Estate Agent, Mortgage Loan Officer, Credit repair consultant
â€“ Lynn A. Crosby