My buyer saw a property that they are interested in, it shows as bank approved list price on short sale. If he wants to offer a bit less is there a possibility it would be accepted? Is it worth the work? There was a CS on an REO for $20k more but much larger sf, in the area.
What do you guys think? I first have to find out if it has an accepted offer, just to be sure.
Thanks.

I see homes in the MLS all the time "Approved short sale @ XXX.. DO NOT WRITE OFFER BELOW XXX."

Many of those homes sell for less than XXX. IF your offer is anywhere in the realm of (distressed) market value you'll probably be fine.

What it means is that the property has already had a 3rd party bpo on it and the asset manager has said a price they are willing to accept. Having said that if you were within 10 percent they might bite. Alot will depend on any junior lienholders.

If your buyer wants to lowball alot I would say forget it. Usually on shorts you can only do that if the bpo has not come back yet or the appraisal depending on the defaulted loan type.Now if yo uare in a down market or the bpo was done 1 to 2 months ago you can show data that the market has droppe dlower and they should consider your price.

The reason they do not want an offer below XXX is that a new bpo will have to be ordered etc.,etc. and will take weeks or over a month to get a new answer.

Many of the homes do in fact sell below XXX...

I've seen a comment "DO not offer less than list price, Negotiator has stated that they would rather foreclose instead of taking less than list"

That was at 359k.. it sold for 320k

Once the negotiator has been assigned and the listing price approved the process is much more streamlined getting another new price approved. The banks really don't want another foreclosure on the books.

I say zpcsc should offer less (he said a bit less not a lot less...)

Since we are in the subject of Short Sales, I have one and am the LA for it. The bank approved the whole thing and the deal shall close in two days, but the idiotic buyer's lender can't get loan docs to close on time.

The moronic selling agent is out of the country and is demanding to cancel the transaction and get the buyer's deposit. My seller is very upset about the whole thing since the bank accepted their offer and said that in no way cancellation shall be granted.

The bank will not grant more time since the Trustee's Sale is due on 6/9 and no way they want to postpone it one more time.

What to do here????

The unvarnished truth is YOU have to step up to the plate and play hardball with the lender to get those docs together. Failure is not an option (for the buyer's lender). As for cancelling the contract, based on what? Unless there is some reason that you're not telling us, a deal is a deal. So sorry to interrupt SA's vacation for his client's deal!

That's why am doing am pounding like a junk yard's dog on the lender to get loan docs, but SA is arguing if the bank is not granting more extension buyer has the right to cancel.

SA is back in town tomorrow and I will raise hell!!!

In our contracts, the buyer does not have the right to cancel if the loan docs are not delivered on time. In fact, they are considered to be in default unless the property failed a lender inspection somewhere. What is the real status of the loan? It's hard to say what to do if you don't know why the loan docs have been delayed in the first place.

The approved short sale price usually comes from the bank accepting a previous offer and then the offer backing out or falling apart. This does not mean the bank won't accept a lower price, however a replacement offer for the same amount as the approved price can usually be processed quicker.

So when people see "approved short sale" it will usually mean that it will be a quicker timeframe for a response as well.

In this case the Short Sale has been approved and the delay is on the broker handling the loan. It is an FHA loan and they did the appraisal too late in the game, I have been in communications with the broker's processor and he said his doing the best he can and it is the hands of the third party lender.

Recov, did they remove contingencies in writing. Specifically the loan contingency. If so I dont see how they could think they could walk with their deposit.

Yeap, they did remove contingencies but the SA keep asking for a cancellation. Today, the loan processor gave us final approval and he will try to get us loan docs as soon as the other lender gets them done.

Now, we have to deal with the seller's bank and see if they want to grant a couple of extra days. What a mess!

I beleive is said in my post they will usually take about 10 percent off their approved price. That sure would be close to that 320k mentioned.

Short sales have commonalities but are not all the same by a mile.

On the other posters extension they might extend if it doesn't cost them any money. If the dates work out where they would have to postpone the sale and pay another set of forecloseure costs they might not go for it without extra money from the buyer or seller to buy an extension. The asset manager would also want to know WHY the extension is needed to assess viablity in closing if they want to grant it.

Get that approval in writing, send it to the seller's bank, and reasonable minds will allow the extension.

Has anyone heard anything about the pre-approved short sale programs from HT, SSP or AL?