I am intersted in a home that my agent says is pending the banks approval of a short sale.

Asked by Jonathan Helder, Grand Rapids, MI Fri Dec 5, 2008

Does that limit my bargaining power? Ar banks working with buyers to unload these homes?

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4
Dallas Texas, Agent, Dallas, TN
Fri Dec 5, 2008
It depends on the bank and your offer, Not all offers submitted will be accepted by bank which can take bids determine who has a better offer. It could be weeks prior any response from a bank. I have been a listing/buyers agent on short sales, foreclosures deal bank seller you have drama, delays, etc. I would recommend continue looking if you dont receive any info. from bank.
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1 vote
smith3gary, Agent, White Lake, MI
Fri Dec 5, 2008
Jonathan,

Your buyer's agent would be the correct person to ask these questions. I suggest you take the information provided in the previous answers and formulate some questions for your agent.

Lynn brings up a good point about delays and drama. For buyers, any short sale will be a test of your patience.

Personally, I believe short sales offer a better chance for buyers to get a deal than foreclosures but this would depend upon the individual home and it's circumstances.
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0 votes
Lori Rossi, Agent, Warwick, RI
Fri Dec 5, 2008
Hi Jonathan,

I'm glad that you are working with a buyer agent if you are interested in short sales. It could be a lengthy transaction. Banks and sellers do want to unload these homes, but they are not foreclosures, so do not get the two confused. On a short sale, the seller still owns the home until the bank approves a sale of less than what they owe-once your offer is submitted, the bank will send out a BPO (brokers price opinion) to determine if your offer is close to current market value-if you are low-balling and the home has not been on the market for long period of time, it is most likely that they will not accept your offer, but they may counter-and guess what, you start from square one again. Not only do you have to show the bank that you are well qualified to purchase the home, but the seller needs to show a hardship of why they cannot keep it. This can take some time for the bank to consider. The listing agent may already have the home listed for below market value-it still needs approval. Have your agent do a market analysis for you, and discuss the process further. If you still decide to go that route, I wish you the best of luck. There have been a few occasions where these deals went quickly and smoothly-depends how far in the procedure the seller has gone. I hope yours is one of them!
0 votes
John Gitre, Agent, Canton, OH
Fri Dec 5, 2008
Jonathan, you need to clarify as to whether the seller is awaiting approval to do a short sale or whether they have accepted an offer which is less than what they owe. I'm sure your agent has informed you that nothing is gauranteed when writing a short sale offer. If the home seller has already accepted an offer, unless you submit an offer with better terms or a higher price, then the bank does not have a reason to respond to you. Good luck.
0 votes
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