I have a real estate related question .. I have my home on a short sale and lender has declined it ..?

Question

what is the next step ?? pls help .. are they willing to accept a higher offer was my offer to low , i owe 460k and a buyer offerd 299k on a short sale transaction .. will they proceed with a trustees court sale or can I still negotiate with my lender . the house was in foreclosure, but they stopped further proceedings becuse we recieved an offer for 299k.. what to do . help pls?

Answer 1

You expected them to eat 161k?

LOL!!!

You need an offer of about 370 to be accepted.

Answer 2

This is easy. The lender WILL accept that. Email me and I will show you how.

J

Answer 3

Janet is correct.  You actually expected the lender to swallow $161,000 on your purchase error ?  Be realistic.  Money does not grow on trees.

The offer for $299,000 was declined because the lender thinks the property is worth MORE than that.  Have a real estate agent determine the correct market value for the property, and then counteroffer these buyers with that market value.

If you expect the lender to swallow a loss, surely you don't expect them to swallow MORE than they need to ?

Answer 4

Despite some of the previous answers, there's no magic number or formula showing what number the lender will accept.

What you need to do is show that the house's current value is as low as possible--even under $299,000. That means have your agent do a CMA, and (within the bounds of ethics) make the number as low as possible. It's very likely your lender had a BPO (broker's price opinion, like an appraisal) performed on your home. But BPOs are notoriously unreliable.

Further, your agent should supply pictures that present your home in the least flattering light. Not dishonestly, but not making your home look good, either.

So, your goal, and your agent's, is to convince the lender that your home is worth as little as possible. (I took a look at some homes just yesterday that had sold, pre-bubble, for $330,000-$350,000. They're now selling as foreclosures for $85,000-$90,000. Yes, foreclosures are different than short sales, but I'm sure lenders in that community would happily accept a short sale for $100,000...less than a third of what had been owed on the properties.)

You can negotiate with a lender up until the moment of the auction. And a short sale can occur up until the auction. I know of short sales that have occurred within 12 hours of the scheduled auction.

So keep negotiating. And if your agent isn't that familiar with short sales, have him/her join forces with someone who is.