@oracles wrote:
@StartingOver10 wrote:
@frugalQ wrote:
there's another poster here on myFICO who had a deal fall through on a short sale. The bank had approved the price previously, but for whatever reason, stalled on his deal.
Don't assume that because the bank has approved a sale price, that they will still honor it.
^^^^Absolutely. I once had an approval with a cash buyer for a condo and the condo association turned him down because the insiders on the condo board did not want any more investors in the community! Weirdest fall through ever....
Had a bank turn down their own price once because the f/c was too far along.
Some servicers are notorious for not approving short sales, generally. Other servicers are much more professional and easy to work with as a general rule, but sometimes the deal just doesn't go through. As frugalQ says above, don't assume they will honor their own bank approved price.
Wow, you guys are teaching me so much.
i did some research and it seems the asking price for this house is either around the same price of others in the area or a little higher.
i thought since it was a short sale, I could maybe get it even lower but I guess not.
i am going to see the house Saturday and if I like it as much as I like the pictures, I will put an offer in.
I just don't want to pay for things I shouldn't have to pay since the listing agent is showing me and I don't know if they will try to take advantage of me because they are working for the seller of the house and they don't have money.
also, what does subject to 3rd party approval mean?
also is the bank approved price the lowest they will go?
thanks again everyone
A few answers as best as I can to the above questions. Most importantly, get a real estate agent or attorney to represent you. You are right that the listing agent has the seller's best interest in mind, not yours. Hire someone to have your best interest in mind. You can get a real estate agent for no fee out of your pocket in many states. They can better advise what charges/fees are standard. Make sure they have experience in short sales.
If the listing agent is being straight with you, it is possible that there was another buyer who offered 300k and was approved by the seller's bank but backed out of the offer or it otherwise fell through. In that case, it is likely that the bank will take 300k.
Short sales are not necessarily about the home selling shorter than the market value, but rather shorter than the amount the owner owes on the mortgage. Sounds like they bought it for 460k, decent chance they may owe more than 350k on it still or even 400k. Oftentimes a bank will not take lower than the market value and take their chances that the borrower will get up to speed or take their chances in foreclosure.
Subject to 3rd party approval is probably referring to the bank. And yes, they could go lower, but often won't and you may wait months to get an answer from them.
You also mentioned earlier that the listing agent said the home value will be going up. That's complete BS. It might or it might not. If the market value is 303k now, she doesn't know what it will be in a few years, she's giving you that line cause she'd like to sell the house.
