Short Sale: How many times can the bank come back and ask you for more money? We put an offer in for $207

Asked by Julie, 60074 Fri Jun 12, 2009

the bank came back and said $213... We adjusted our offer and it was verbally approved. Now we are getting down to closing time and they want $225... Shouldn't they ask for that the first time??

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Jim Starwalt, Agent, Grayslake, IL
Fri Jun 25, 2010
Hi Julie, it does not sound as if there are multiple offers on the property, what happens is the seller accepted your offer, the bank countered and said they would accept the $213,000, as you know, but then the offer usually goes out to a third party ( the end investor on the properties loan) they are probably the ones that countered with the new price of $225,000. I understand it is quite frustrating on your side, but I hope you get a good house in the end.
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Eric Egeland, Agent, Buffalo Grove, IL
Thu Jun 24, 2010

It is difficult to say exactly as each scenario is unique, but you most likely received approval from the owner/borrower & not the bank. You then need 3rd party approval from the bank. They will often counter your 'accepted' purchase price..... If the bank approved your purchase price you would have signed off on the $213k.
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Edward J. Pl…, , Carol Stream, IL
Sat Jun 13, 2009
Hi Julie,
A short sale does not follow the pattern of a normal sale. In a normal sale, the property is put on the market at a list price. After an offer is accepted, the status in the MLS is marked as contingent and real estate agents generally don't show the property to other buyers. In order to have multiple offers, they would generally have to come in relatively close together in time. Unless there are multiple offers, a buyer could reasonably hope to purchase the property somewhere below list. The transaction moves along quickly and is governed by how long it takes the buyer to obtain financing. In a short sale, the property is put on the market at a drastically reduced price. Banks are aware that this is going to generate a lot of interest in the property and probably more than one offer. They take offers into consideration but continue to show and market the property. They are in no hurray to commit to a single offer and close. They often queue up several buyers for the property. Once this happens they don't care if they lose one or two due to their procrastination or ratcheting up the price. Preforeclosures, foreclosures and short sales are not always the bargains they often initially appear to be. They are only for the most iron-willed buyers. To have stuck it out this long, your will is far above that of the average buyer. I hope the deal stays together and you are able to close. I hope you you still find the property a good buy even after paying more than you initially thought you would be. However, in this market, buyers have tremendous negotiating power even for non-distressed properties. Prospective buyers should not limit their options by only considering preforeclosures, foreclosures and short sales.
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