Bank Approved Short Sale

What would you do in this senario: a house is a bank approved short sale at $175,000...what would you offer and expect it to go through?

Re: Bank Approved Short Sale

how long has the house been in that market? and how much you think (base in the area) the house is worth if it was not a forclosure?

Re: Bank Approved Short Sale

Bank-approved short sale can mean many things... it can mean that the bank has agreed to work with the sellers on a short sale and knows the property is listed for x, it can mean that the bank previously accepted an offer for the asking price, and the offer fell through... Banks are playing it a lot closer to the vest these days when it comes to what price they want to get for a short sale. First thing -- I would ask the listing agent (or if you are working with an agent, have her find out) what is meant by "approved short sale" in this case.

The flexibility in terms of pricing with a short sale really depends on the bank or banks involved, and often the individual investor who is trying to recoup as much of his money as he can (since banks sell the loans -- there are always unseen/unknown investors involved). If the listing just came out, it is probably listed above market value because the seller needs to show the bank that they attempted to recoup its money. Even if it's been out on the market for awhile, the bank may be holding firm to the number that it wants.

So the bottom line is -- there is still a lot of uncertainty in this situation, the bank (and underlying investor(s)) are the ultimate decision makers, but often will not advertise what they are looking to get out of the situation. So all you can do is decide what you want to pay for the house and make an offer.

Just make sure you have a good agent and a good attorney who are both familiar with short sales and can guide you through the process. And be prepared to wait awhile to hear from the bank!

Good luck.