Short Sale Counter offer to be held as a back up. I don't know what to think, is that possible? What are my options?

Asked by Bobby Macaroons, Buford, GA Thu May 31, 2012

My agent made an offer on my behalf on a short sale property. Asking price was 70k We offered 71k and we also offered that I would be responsible for the closing costs, in order to make the offer more enticing.
Few days later,they came back with a "counter-offer".
The bottom line is this: The Seller decided to go with a cash offer first. There is a concern that if the lender bank counters with 72,5 that the cash buyer might not be able to pay the closing costs and if his offer falls they want ours as a back up. They countered our offer at 72,5 though, and requested that the buyer would be responsible for all the HOA fees at closing.

Basically they countered my offer and if I accept it they would keep it as a "back-up" to the original. Not only that but they want me to pay for any HOA fees overdue. Seems sketch to me...

Any ideas why they would want to do this?
What would be some of my options in this case?

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Flip Fenno’s answer
Flip Fenno, Agent, Buford, GA
Fri Jun 1, 2012
Hello Bobby, short sales in this market, and in that price range, tend to get multiple offers. If you like it, chances are someone else does too. This type of property tends to attract investors as well. They typically pay cash so this may be the case. Banks tend to try and reduce their losses as much as possible. There are other ways to eliminate those closing costs and HOA fees. I would be happy to discuss this with you. I have been selling homes in this area for 15 years.

Feel free to give me a call anytime.

Flip Fenno
678.618.9183 mobile
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Sally Grenier, Agent, Boulder, CO
Thu May 31, 2012
First, this sounds somewhat complicated, and since we aren't part of the transaction, no agent on here can give you 100% accurate answer. Ask your Realtor. But I can say it's common for the bank (seller) to not want to pay any additional fees. That's just how it is with short sales. They are already taking a huge hit. They don't want to pay any more than they need to. There could be a high HOA transfer fee, or a reserve deposit, or whatever. If you want the property, you need to pay that.
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