topic Re: What the? Counter by seller in Mortgage Loans

What the? Counter by seller

Anonymous — Tue, 26 Aug 2008 19:31:06 GMT

Short sale house on the market for $230k.

I offered $200k, owner accepted.

Lender came back and wants me to come up to $240-$250k!!!

We came back with $215k and reminded them that the house sat on the market for 75 days with no bites at $250k.

This is offer number 7 (yes, 7 houses) - can I PLEASE find a house before I have to move in with my mom in November???

If these jerkfaces say no, I just found another house I'll put an offer on.

SOBs

Re: What the? Counter by seller

Anonymous — Tue, 26 Aug 2008 19:36:07 GMT

Can I ask how long it took for the lender to respond to your offer? We are waiting to hear if the bank accepted our offer on a short sale, they were asking $269k but we offered $277k knowing that this particular unit sold for almost $500k 2 years ago. We were told we should hear something back from the bank this week, probably on Friday at 5pm! I cannot stand the waiting and being in limbo!!

Re: What the? Counter by seller

Anonymous — Tue, 26 Aug 2008 19:40:16 GMT

I put the offer in on Aug 13 and gave them 30 days to respond. I was fully expecting to wait out the 30 days. The owner accepted within 2-3 business days.

We emailed our counter of $215k back. So hopefully I'll hear something soon. I'd like to jump on this other house ASAP.

Re: What the? Counter by seller

Lel — Tue, 26 Aug 2008 19:51:11 GMT

@Anonymous wrote:
Short sale house on the market for $230k.
I offered $200k, owner accepted.
Lender came back and wants me to come up to $240-$250k!!!
We came back with $215k and reminded them that the house sat on the market for 75 days with no bites at $250k.
This is offer number 7 (yes, 7 houses) - can I PLEASE find a house before I have to move in with my mom in November???
If these jerkfaces say no, I just found another house I'll put an offer on.
SOBs

Unfortunately in short sale agreements, it's not the owner who gets the final say on whether to accept an offer. The lender is trying to minimize its losses. With the new law saying that forgiven debt in a short sale is no longer considered taxable income, there is no incentive for short sellers (the current owners) to try to get the best price for their home. Whether the bank loses $10,000 or $50,000 is immaterial to the distressed homeowner; it going to show up as a foreclosure-equivalent on the credit report.

Re: What the? Counter by seller

DallasLoanGuy — Tue, 26 Aug 2008 21:21:45 GMT

I would hardly call the bank a jerk or SOB because they didn't take your low ball offer.

Re: What the? Counter by seller

kraig — Tue, 26 Aug 2008 22:47:49 GMT

We have been waiting 8 weeks for Wells Fargo to even respond to our short sale offer. These banks are so incompetant it is pathetic. No wonder they keep going out of business.

Re: What the? Counter by seller

Anonymous — Tue, 26 Aug 2008 23:08:04 GMT

It may be that you waited a long time, but that doesn't make the banks jerks. Putting in offers on any shortsale is like a fire and forget thing. You put the offer in and keep looking. If you don't find a property before one of the banks agrees then you negotiate with them. In most of these cases there are at least 2 lenders involved and in alot of cases the second lender takes a full loss and would be better off if it went to foreclosure. This is because at auction they can get a split of the proceeds instead of a normal sale where the entire 1st loan has to be paid before the other loans get a piece. In alot of the hard hit areas, there just isn't enough money to pay the first mortgage in full yet alone any other leans.

People think that some guy at the bank is sitting there with this stack of files laughing and trying piss people off. It is much more complicated that that, and the banks are just now getting staffing in and trained to handle the excess of foreclosures, shortsales, loan modifications, etc. It is just a bad situation to be in as far as shortsales go...Therefore....FIRE AND FORGET... If you make a hit then consider yourself lucky.

If I were going to seriously bid on a short sale, it would only be where people had already recieved an approved price from the bank and there was only 1 lender involved. Otherwise, fire and forget.

Re: What the? Counter by seller

Anonymous — Thu, 28 Aug 2008 16:13:37 GMT

Sorry to dredge up an old thread here, but In a short-sale situation, could the house be put on the market at an asking price less than what the bank would accept? Here is my situation currently. In my area, the average price for a decent house is between $200,000 and $275,000. The house we put an offer in for was listed at $215,500 while other houses in the same neighborhood (not short-sales) were going for slightly more. Should I be worried that the bank will not accept my offer which per my agent was $215,500+ 6% ($227,900)? I am getting the feeling after reading through this thread that the "average" price of homes in the area and the list price may not have anything at all to do with if the bank will accept the offer or not.

Re: What the? Counter by seller

Lel — Thu, 28 Aug 2008 16:20:50 GMT

My understanding is that the price listed for a short sale house has to be agreed to by the lender. Any offer that comes in below the listing price is asking the lender to lose even more money, which is a major reason the OP's offer was rejected.

I would imagine that offering above the asking price would make your bid more attractive to the lender, but there is no guarantee that it will be accepted.

Re: What the? Counter by seller

Anonymous — Thu, 28 Aug 2008 17:50:42 GMT

I'm not saying they're jerks for not accepting my offer - I did low ball and kept looking and I'm glad I didn't have to wait the full 30 days. I'm saying, why ask for $230k then tell me that you want MORE than what you're asking. I've just never heard of that.

If the house had been on the market for $240k, I never would have wasted my time (and have $1000 tied up in an escrow account right now) with an offer as this house wouldn't have been on my radar.

Know what I mean, jelly beans?

Or maybe I'm just a little wound up and frustrated over the whole buying process because this was offer #7 that fell through.

Re: What the? Counter by seller

DallasLoanGuy — Fri, 29 Aug 2008 02:11:14 GMT

JR2475 wrote:
Sorry to dredge up an old thread here, but In a short-sale situation, could the house be put on the market at an asking price less than what the bank would accept? Here is my situation currently. In my area, the average price for a decent house is between $200,000 and $275,000. The house we put an offer in for was listed at $215,500 while other houses in the same neighborhood (not short-sales) were going for slightly more. Should I be worried that the bank will not accept my offer which per my agent was $215,500+ 6% ($227,900)? I am getting the feeling after reading through this thread that the "average" price of homes in the area and the list price may not have anything at all to do with if the bank will accept the offer or not.

i recently discussed a deal with a borrower.... he was going to offer $365K on a $329K list.....

every market is different.

consult your realtor. you will find no value in the responses here about value and what will be accepted. this is a national board.

we CAN help you with other questons,.

Re: What the? Counter by seller

Anonymous — Fri, 29 Aug 2008 02:52:36 GMT

Short sale listings do not have to be approved prior to the sellers listing it. In most cases, they do nto start out as short sales, they start out as regular sales. As the house sits and the owner get further behind, they get desparate. Then the start dropping the price. At some point (at times even at the begining) this price is lower than money owed on the house. Once a bid is accepted by the sellers is has to be accepted by the lender. A smart seller will get the process started, get their agent in touch with the asset manager handling the file, and get a number tha bank can live with. Maybe half of the people out there do this, and most I have seen that already have the paperwork started is only because they had another buyer that fell through.