Real estate short sale?

Question

Dear experts,

In a short-sale, let's say the amount owed on the house is 300K. Originally purchased at 350K. What will be a reasonable best offer that I should submit for this house? This is in Atlanta area by the way.

Thanks in advance,

lwt

Answer 1

First of all, you need to ask if that short sale is approve in order to know how much is the bank willing to accept, a non approve short sale can be a nightmare because the Bank use a BOP (broker opinion price) to negotiate the price with the seller and that might take long time, advise talk to your Realtor about the status of the short sale and them ask him for a CMA to see which would be the best offer to submit  

Answer 2

Depends if the market is hot or cold.  Do a little research, what are similar houses in the area selling for (not what is being asked).

There is no need to overpay - what the owners paid is immaterial at this point.

Answer 3

I will never again bid on a short sale.  If the loan is $300,000, the price is less than that.  The difference is the "short" amount.  Let's say the price is $200,000.  As soon as you make your offer, the bank starts to negotiate with the seller.  That is wrong. You want them to negotiate with you.  You are the buyer.  You are making the offer. NOOOOO.  The bank does not want to lose $100,000 (the difference between the loan and your $200,000 offer).  

The bank asks the seller to fill out a complete financial statement.  Just like the seller did when she first bought the house.  After 90-100 days, the bank will tell the seller:   the bank will agree to lose $60,000.  The seller has to come up with the missing $40,000.  The bank will accept $20,000 cash and an IOU for $20,000 at 8%.

You , as the buyer, don't get to hear about any of this. It goes on and on and on.  The seller says no to the bank's offer.  The seller will pay $5,000 cash and an IOU for $5,000 but the bank must "eat" the $90,000.  

The bank counters:   They will accept $5,000 cash but the seller must sign an IOU for $25,000.  The bank will lose $70,000.

The seller refuses.  He thinks the IOU interest rate is too high at 8%.  He wants 5%.

I waited 100 days and they were still doing this.  No one told me a thing.  Nothing.  I felt like a fool when i finally heard the real story from the seller and the bank.

This was on a property that i was assured had "been completely approved for a short sale and only needed an offer to wrap up a sale".  /