Counter offer to Bank on short sale

Asked by Bob, Lytle Area, Abilene, TX Tue Feb 9, 2010

I got a response on my short sale offer. There are 2 lenders. One of the lenders is asking for $10,000 more. Also want everything closed in a very short time frame of 3 weeks. Will the banks be willing to negotiate on the money or time frame?

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5
Scott Godzyk, Agent, Manchester, NH
Wed Feb 10, 2010
Normally the banks will not accept a counter offer and if they do, it could be another month before you hear a response. You need to determine if the price is at or below market value, if the house suits your needs and is lower than market value then their counter is fair. As far as time, you should have already had your loan in process and the mortgage company should be able to close within 21 days. Your buyer broker who hopfully is experienced in short sales, should be guiding you through the process.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Tim Ambrose, Agent, Castro Valley, CA
Wed Feb 10, 2010
Hi Bob,

Are homes in your area selling within the price range the bank has countered? If so, you should feel good about the opportunity to own the home. On the other hand, if the comps are different you should continue negotiations and send comps to support your position/price point. As for the timeframe to close, if you can’t close within the timeframe, send them a timeline that will work. In most cases they will cooperate.

I hope this helps,


Tim Ambrose
REALTOR
Windermere Welcome Home
510-258-8909
Web Reference:  http://www.timambrose.com
0 votes
Dawn Rivera, Agent, Fremont, CA
Wed Feb 10, 2010
Hi Bob,

If you want the home you will have to give the 10,000 more. I had a short sale where the buyer tried to say they did not want to add the money and the bank said ok, I will start foreclosure proceedings tomorrow and hung up the phone. As for the time extension I have been able to get more time. I would however do your best to close when they require, if at all possible.......Good Luck.....Dawn
Web Reference:  http://DawnRivera4Homes.com
0 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Wed Feb 10, 2010
Bob
What are the recently sold homes in the same neighborhood? Does the price align with those sales?

If it does.....

You can try, but my experience when the gravel is hit by the bank and it is within the comps, that is what they want. You have to treat this like a counter offer. Are you ready to walk away if they don't like your terms. The time is a bit easier to negotiate but usually (not always), they can give you a time extension if you need it. I have one right now that we have under 2 weeks to close going FHA so it can be done. Choose a lender that is capable. We do it all the time. I will admit a little bit frustrating you wait so long for them.... then they don't extend much of a time courtesy to you. It is what is.... Do you want the home? If you do... time to move!
0 votes
Tony Baron, Agent, Hendersonville, NC
Wed Feb 10, 2010
From NC. If you want the deal, examine the true reason for not closing when the lender wants you to close. If you and your agent thinks it is a legitimate reason - can't get financing that quick, closing attorney can't/won't get the work done that fast, inspections/repairs can't be done that quickly, etc., legitimate stuff - then I think the Lender will give you 22 + days to close. If you just don't want to be put in a time mode that feels like you're being hustled........consider, the whole country has been hustled and we're all working through it.......if you think the property has hidden compromising issues - structural, HVAC, zoning, legitimate issues - then I would look for another property. Having gone as far as you've gone, it sounds like you should come up with the $10K and close in 3 weeks if your closing team says it can and should close.
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