We came back from an appointment this evening to 2 offers on a newer short sale listing...that should be a good thing...urgh.....
The first offer 30% under asking had "instructions". The claimed to have 5 years of short sale experience.....(records indicate she had been licensed for less than half that time)....and all we had to do was submit thei offer to the lender.....and eventually the lender would let us know if we were "in range of an acceptable price." As MLS requires...we will indicate the offer is active with offer....and we'll wait weeks with the offer tied up and a buyer not qualified to buy it while the foreclosure clock runs.....hmmmm...
The second offer not only included things the seller should pay..gap insurance...closing costs but also that the listing agents will buy the home owners warranty.....Now there is a novel idea....I think that besides doing ten times the work...which we have done and will continue to do happily.....now we should further pay a bonus to the buyers..gee golly whiz....why didn't we think of that....
What ARE they Thinking ?
If you are unable to pay your mortgage...calll us no matter where you are....we can help or refer you to help in your area AND know how to do a short sale !
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
Short sales are always challenging. The seasoned agent will know enough to ask the right questions and to research the property and area comps before writing an offer.
Perhaps the kind thing to do is call these agents back, ask them to make some changes on their offers to make them more attractive (i.e., more likely to be accepted). Otherwise, you can go ahead and send the offer to the short sale lender to get the ball running, especially since most loss mitigators won't even look at a file unless there's an offer. Perhaps in the interim, a better offer will come along, and by that time, you may be closer to getting an approval.
Good luck.
Thank you Pacita...I have both e-mail and voice mail into both agents...we don't submit either bogus or what I call "baloney" offers that are half price...the LM's have enough to do with REAL offers and this defeats the purpose and we stifles our efforts to get a good offer since we must show the listing as active with offer in MLS.
Sally and David
I had a listing that the buyers originally paid $840K at the height of the market (they put $200K down). We listed it at $599k which was an aggressive figure, but was just slightly under what they owe.
I received an offer for $480K ---- which the short sale lender accepted. But the buyer couldn't qualify and backed out. I re-listed it at $480K. Another buyer came and offered $475K. And the bank accepted!
We were grateful the bank accepted, but that's $119K less than what we originally listed it for, or 20% less. i think what helped the offer were the terms and conditions. And fortunately, by that time, I was already communicating with the loss mitigator who was very reasonable and understanding.
We were lucky. So one never knows.
I also had another short sale --- we started at $399K, and ended up selling for $275K. We justified it because of the extensive repairs. I challenged the first BPO, and shared the reports with the second BPO person. Again, we were lucky!
Pacita,
I have found that so much weighs on the appraisal. I do a lot of FHA loans and it is pretty cut and dry right now the lender must net 82% of the appraised value. After 60 days that number changes of course.
Gotta stay on top of the market...and we know you do Vanessa !