I put an offer on a short sale for $170K and I know the comp in that are are in the $200K. Do I have any chance?

Asked by Sarah, Miami, FL Fri Jul 2, 2010

with HOMEQ who's the sellers bank? There is no other loan just one and the owner owes around $280K

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18
Alma Kee, Agent, Tampa, FL
Fri Jul 2, 2010
BEST ANSWER
Hi Sarah,

HomeQ may not actually own the loan and may be a mere middleman "servicer" for the actual investor that owns the mortgage.

Ask your Realtor to ask the Seller's Realtor who the actual "investor" is for the mortgage. Also have her find out if there is PMI on the mortgage. The Private Mortgage Insurer may require a higher sale price or force the seller to sign a promissory note so this is why it is important.

And... until/if you get a written approval letter you need to continue to shop for properties. Many short sales never close. It's also important not to put any earnest money down. Some short sale owners are unscrupulous and may not release your deposit even if you are legally entitled to the return of your deposit without giving up half the money!
0 votes
John Bennett, Agent, Orlando, FL
Wed Jul 7, 2010
Sarah,

Now if you owned the propety- and you knew in kind properties were selling for $200,000, would you sell for 170,000???
I think you answer your own question don't you?


John
1 vote
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Sat Jul 3, 2010
Seems unlikely thay you have much of a chance, but you never know. The lender will probably come back with a number they are willing to accept, but be prepared to wait a while.
1 vote
Bill Eckler, Agent, Venice, FL
Fri Jul 2, 2010
Sarah,

With a short sale you actually need the approval of both the seller and the lender. For value support the bank will seek the expertise of appraisals and BPO's and likely base their decision on this information.

If you are way off the bank's expected nunmbers, expect them to counter with a number some place in between.

Good luck,

Bill
1 vote
Heidi Zizza, Agent, Framingham, MA
Thu Jul 8, 2010
Sarah, nothing with regards to short sales are normal. Put your best foot forward and be patient!
Web Reference:  http://www.mdmrealtyinc.com
0 votes
Dominick Mar…, Agent, MIAMI, FL
Thu Jul 8, 2010
Chance, maybe. Just rememeber to continue shopping for a home meanwhile your waiting for a response in regards to the shortsale. There are many reasons why a Shortsale lender maynot approved your offer. Has nothing to do with how much is actually owed. Lender will usually look to consider an offer closest to current market value, The fact that only one loan is owed against the home makes the shortsale process much easier for the professionals to negotiate with. Best of Luck in dealing with Shortsales
0 votes
John Bennett, Agent, Orlando, FL
Wed Jul 7, 2010
and I have not a clue about why one would look at age of loan and what the property was
bought for.

All that matters is current market -

ALL THAT MATTERS
0 votes
John Bennett, Agent, Orlando, FL
Wed Jul 7, 2010
I still ask, why would one sell a $200K house for 170 K?
0 votes
Nancy Keith…, Agent, Louisville, KY
Wed Jul 7, 2010
Wonderful news, then you have a better chance at negoiating an acceptable offer with just the seller and one lender. Another thing to look at is how old is the loan and what price was paid for the property when purchased by the seller. Many many aspects on short sales and very good answers were given to you.
0 votes
Alma Kee, Agent, Tampa, FL
Wed Jul 7, 2010
Hi Sarah,

If the lender comes back with a counteroffer, if the seller will go along with it, give a counteroffer to their counteroffer.

Some Sellers at the advise of their listing agent may not try a counteroffer back and may simply put the property back on the market at the approved price and list it as being "approved at the asking price".

I believe if Fannie Mae is the owner of the mortgage (you can look it up online by address) then the "servicer" for Fannie Mae is "required" to give a counteroffer. Just closed a fannie mae short sale and that's what they did. The buyer countered it and my seller was okay with trying a counter (it was still in the ballpark) and Bank of America (servicer, not the owner of the mortgage) accepted the buyer's counter. It was a simple short sale as there was only 1 mortgage (with Fannie Mae as the investor/owner) and a true hardship case.

Just as an fyi... there is no relationship between what a seller "owes" on his mortgage(s) and what sale price will be required. The "current market value" versus the offer amount is what the Negotiator for the lender will look at. What is owed is meaningless because the "market" will dictate what they can sell it for if the lender decides to foreclose instead of allowing a short sale.

And remember, keep shopping for a home while you are waiting for an approval that may NEVER happen.

All the best,
A;
0 votes
Nancy Keith…, Agent, Louisville, KY
Wed Jul 7, 2010
Can your Realtor investigate to see what Liens are owed, HOA dues, Tax liens, Judgment liens, etc on the home? How many Mortgages to deal with? That answer will give you a better insight. This is why it takes so long for an answer to an offer.
If there are too many people to deal with on an offer then it is some times best to wait until the foreclosure happens on the property.
Have patience it will happen.
0 votes
Sarah, Home Buyer, Miami, FL
Wed Jul 7, 2010
The short sale listing price was 180K, that is why I offer 170K , after my offer I started looking at the sold information and realized that the listing agent listed the home for too low. This is why I am concerned.
The zip code is 33174
0 votes
Nancy Keith…, Agent, Louisville, KY
Wed Jul 7, 2010
Your question is not complete. The comps are just a part of the equation. The real question is what and who and how much is owed on the property.
0 votes
Nereida Figu…, Agent, Miami, FL
Sat Jul 3, 2010
Sarah, even the comparables are in the 200K bank is also willing to negotiate price too. Physical condition of the house is another point they count it for their net. By a Broker Price of Opinion (BPO) and adjustments maybe you can have it. If not, rise the offer 10K by 10K and bank can see that you are a serious buyer and can agree for your offer. Another tool is be completely approved by your bank. It can make a big jump no too much to wait, closing fasssssssssst.
0 votes
Kevin Clouti…, Agent, Cape Coral, FL
Fri Jul 2, 2010
You need to ask your buyer agent that. This is the wild wild west and the banks follow no rules what so ever. He/she should be on top of it, but it is a waiting game,

You need to askl your agent to find out who the bank is. You could find out in public records if you knew where to look. Thats why we take classes and go to continuing education, to protect our clients.

Good Luck
0 votes
Miguel Soria, Agent, Miami, FL
Fri Jul 2, 2010
Who placed the offer for you?
Was it a Realtor or you did it on your own?
HomeQ is the Bank.
Regards
Miguel Soria
0 votes
NoLonger Inb…, Agent, Miami, FL
Fri Jul 2, 2010
Normally when angent lists a home they go at least 10% more to make room for negotiation. It all depends on the recent sales in the area. You may receive a counter offer. Or if a higher offer is received, they'll go with that one. If it's a heck of a deal, It's always prudent to submit your highest and best to assure you attain the home
0 votes
Jose Castillo…, Agent, Hollywood, FL
Fri Jul 2, 2010
Sarah its hard to say with Banks but just on the surface here without knowing the area or any other particularsof your offer (overall strength of it) is it financing cash IE.
I would guestimate that you would have a chance here. its not much more over 10% of the comps you mentioned.

Best of luck with approval and i hope it goes thru for you.

Jose Castillo
Coral Shores Realty
954-240-3940 or josesellsfl@yahoo.com
Web Reference:  http://www.josesellsfl.com
0 votes
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