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Old 01-04-2008, 10:37 AM
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An acquaintance of my husband's is doing a short sale on his mortgage. We made an offer on the house but it is about $100,000 below property value. Honestly I think it is unrealistic but it is all we can afford.

I'm a title agent but never worked with short sales before. Just how short do mortgage companies go?
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Old 01-04-2008, 05:18 PM
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good question..
i can only speak for my area, and the answer is NOT LOW ENOUGH.
Short sale-
we bid $95,000 on a house worth about $125,000
After repairs and the bank didn't take it.
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Old 01-04-2008, 05:25 PM
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Well that is not very impressive.

Anyone else have any experience with this? I always hear about "Huge Bargains from Distressed Sellers". $5-10,000 is not a huge bargain.
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Old 01-04-2008, 06:58 PM
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I think in this market they would def take less. There are more and more foreclosures in our market everyday. My client was looking at one, the house orginally listed at 239,000 they had to drop it to 202, and then it sold for 190 so they took a big hit on that one but the bank only had about 180 init

So I have seen it happen for way less than the list price so hang in there
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Old 01-04-2008, 07:02 PM
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The question is not whether or not a seller will take less than value, but the lender. The house we made an offer on has little equity. It is the lender taking the hit.
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Old 01-07-2008, 11:14 AM
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If you can pull a list of negatives together, repairs, crime stats - ANYTHING - that will surely help you out in any short sale .
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Old 01-07-2008, 11:34 AM
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That's a good idea. I didn't know the mortgage company would even care about anything like that. Thanks
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Old 01-08-2008, 04:13 PM
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We bought our house through a short sale, and that experience taught us that it ultimately depends on the particular lender as to how low they will go and what criteria they will consider. In our case, the bank rejected our initial offer and we were required to re-submit a higher offer. They were very strict about getting 90% of the current appraised value. The bank was Wells Fargo in this case. Another problem was that the seller had both first and second loans, and Wells Fargo required the entire first to be paid off, and they were only willing to negotiate on the payoff of the second loan. Each time we made an offer, it took six weeks to hear an answer back from the lender. The entire process took 5 months. It was not a fun process at all, and in the end we had to offer so much higher than we originally intended, it did not end up saving us anything because home prices in the area continued to fall. But, we had fallen in love with the house by then and kept pressing forward. It eventually worked out ok for us. We got a good deal on a house we love, but not the outstanding deal we originally thought we were getting.

I guess the biggest advice I can give is to be patient and realize anything can happen in these situations.

I have been told by other people in the business that not all lenders are as strict as Wells Fargo was in our case. "It depends." Also, this was a year ago, and more and more houses have gone into foreclosure since then, so maybe they have eased up.

Good luck!

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Old 01-08-2008, 06:37 PM
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Thank you for sharing your experience. It was very helpful.

Does anyone else have an experience or tips to share?
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