Short Sale - Bank Counter

We found a short sale price, offered full price, it was accepted by sellers and now the bank who responded pretty quick now wants more money.

How common is it for the bank to fight over 16k? After we re-counter, the difference will be 10k. The amount they want was the most recent appraisal but it wasn't moving, so the listing agent lowered the price to drive traffic and it hit our mark.

In the grand scheme of things, its not a big deal but we are already at max budget and really don't want to budge more then i have.

Property has been on the market for some time so the sellers agent links the lower amount to push was fair and we agree. We wanted to have some equity in the house from the start.

I know every bank could be different (dealing with wells fargo) and just want this stressful home buying process to be over.

Thanks

Message edited 3/19/2013 9:42:11 AM.

Re: Short Sale - Bank Counter

nevermind...just re-read your post.

Message edited 3/19/2013 9:28:29 AM.

Short Sale - Bank Counter

I've not yet done a short sale as a real estate broker, but I used to represent banks (Wells Fargo being one) in various distressed situations. So my comment is going to be tempered with this advice: assuming your real estate agent has experience in short sales, go with his or her advice.

As far as how common it is.. quite common. In these short sale situations, as a general matter, it is not about the bank making money on the sale, they are trying to get the house off the books and the investors off their backs. Chances are the bank has some number that they cannot go below, usually because the mortgage has been packaged and sold to investors who are driving the bus. If the appraisal is the amount they are countering with, then if I had to guess, they are not going to budge from that.

Re: Short Sale - Bank Counter

a good percentage of my business is short sales


wells fargo countered me over $2k recently- we held our ground and they accepted - the buyer wouldn't come up and I trust who handles my bank negiaotions to resubmit it properly and challenge them correctly

sometimes coming up a bit helps- if I represent the buy I do suggest to come up a little- since I don't have control over the paperwork going in

it's not the bank but the investor guidlelines- some times they just need to be pushed- they aren't looking at the big picture - they are looking a line on a spread sheet- it's frustrating

my advice would be to go up a little and submit an explaination as to why you wouldn't go up higher