How long did it take for you to hear back from the lender? who was the lender?

How long did it take for you to hear back from the lender? who was the lender?

This is a tough situation to swallow for many buyers in our marketplace these days. The sheer weirdness that many of these Short Sale Pre-Foreclosure homes take on is different from one transaction to the next.

It seems on many of these properties the bank has their value, numbers, percentages, loss ratios, etc... that they have to follow.

Another thing many don't realize is that this is still negotiation. You should counter their offer with evidence of the roof repairs needed. Or if the house is the perfect property consider meeting the lender in the middle. Another interesting thing would be to counter 1/2 way.

I read a short sale article out of Tampa recently where the lender doesn't care what the net is as much as the purchasing price. If the home is worth is counter at or above and request a repair credit at closing.

Scott Slocum, REALTOR®
Licensed Real Estate Broker Associate
Florida Future Realty, Inc.
2816 Del Prado Blvd South Unit 2
Cape Coral FL 33904
Direct: 239-340-1384
ScottSlocum@FloridaFutureAgents.com

Some negotiators are harder to deal with than others. Just keep trying. The other way you can do is re-submit the offer with a new purchase price of $155,000 (if there is no other offer on the table right now) Hopefully your new offer will be accepted. Good luck.

Need some more background... who is the lender... is there one loan or two? What was the original asking price at the time of the offer... how long ago was the short sale approved? Does the BPO reflect the needed repairs.

I hope I didn't insult you earlier I was just trying to point out that there was another side to the transaction. The deal is rarely dead, unless you give up. Hardly any of my deals fall through you just need to work harder now.
Your agent is there to work for you. If you can't go higher then make the agent work, here are some of the things I do: Write up a sheet saying what there costs are going to be to foreclose, lawyers fees, eviction notice, value minus damages, how much interest they are losing by not putting the money back out in the market. I would make them believe that the loss of $5,000 is actualy a financial gain. If you want, email me and I will give you my shortsale info sheet. david@floridadreamloans.com

There are a number of variables that come into play when dealing with short sales. What percentage below market are you attempting to purchase this home? What is your perceived market value of the home with a new roof? Are there other potential deals that you can move on to should this negotiation stall?

As Trey suggested, I like the idea of splitting the difference and telling the bank that it is your BAFO (Best and Final Offer). I'd only do this if you are willing to walk away. By now, you & your buyer's agent may have already tried this tactic. I'd be interested to know the particular lender, whether or not there is a first & second mortgage (and if the same loan servicer has both), and whether or not the Seller's existing loan is FHA-insured? Armed with answers to these questions, your buyer's agent will have better insight as well as other data to better support/justify your position in negotiations.

Here is an alternative approach you might try. If you are obtaining financing to purchase this home and you are open to using the loan servicer who is holding the present mortgage, tell them that you would agree to allow them to underwrite your new mortgage if they accept your offer of $155K. If that doesn't work, consider asking the loan servicer to build the cost of the roof repairs into your new loan with them. There are different ways, under certain guidelines, that allow lenders to structure loan products to cover the cost of repairs. Food for thought... Best wishes - Ted

Its Friday night, where else are all the Realtors going to be but sitting in front of the computer answering questions? At the Plant v Armwood game rooting on the Plant Panthers? Go Plant! Class of '91.

Anyway, I think you need to ask yourself are you ready to move on to another home. Sounds like the bank is really digging in their heels on this one. Is it really worth the time and effort for you? By the way, do you know which bank it is.

Trey Miller
Prudential Tropical Realty

Susie, You may have hit the nail on the head. I believe with the answer I got back from this bank that the negotiator is not in a position to negotiate and someone from above them must just set the price and say, 'That's it, final, take it or leave it'.

Trey, at this point I don't think the bank wants to deal with me any longer and their price is final. I have asked my agent to put in a final request to reconsider but I don't give it much hope for the same reason you state. The the banks don't know what they are doing in real estate sometimes.

I believe also that this is why it is going to take longer they anyone would like for the market to dig itself out of the mess it is in now. But, times like these make good opportunities for those that are patient and have the fortitude to look toward the future and ignore all the hype. Good discussion here I think and quick answers too. Wow!

Paul, if your offer is within a fair range of fair market value then the Listing Agent should be fighting for you. Quite often the Listing Agent gives up too easy when somebody at the front line of defense says "no". If your offer is fair then the Listing Agent should climb the ladder until they reach somebody with some sense who can see the light! Persistence is key in the success of a Short Sale. You're not wasting your Agents time if your offer is fair. Has your Agent determined such? Have your Agent speak with the Listing Agent to see what his or her attempts have been. Good luck.

What if you split the difference and offer $157,000. Would that still seem like a good deal to you?

As for the negotiators the work at the bank...sometimes I don't know if they know what they are doing. I had a buyer make an offer on a foreclosed property. So, the bank makes a counter offer. Then we make a counter that wasn't much higher than the buyer's original offer. I thought the bank would maybe come down a little more on price, but NOOOOOO! The bank's next counter was at full price. What???? Some of these negotiators are acting like it is their property.

Good luck on your short sale,
Trey Miller

David, I tried negotiating but they refused my offer. The inspector found the roof needs replaced for the $5,000. This is why I offered the $5,000 less. I think this is fair. The bank can afford the $5,000, I can't at the moment so yes, it is a big deal to me. I have to live within my means or budget or I am setting myself up for failure. I will not do that under any circumstances or pressure from any salepeople. I am not like the average Joe American if you get my perspective here. I can also appreciate your perspective as a hungry sales agent.
So, tell me how do you get a bank to negotiate when they just come back and tell you that it is 'as-is' and that's final? I think my agent is getting tired of my nagging further about this offer and my wasting their time. I appreciate your replys. Would you like to take over? Just kidding. :)

Some banks have formulas they follow that allows them to go to lower to a certain point and not beyond... or the negotiator may have the ability to negotiate to a level without further authorization. I agree with David, $5,000 doesn't seem like a huge gap is there anyway to meet in the middle? Is the house a good guy at $160,000 even with a roof that needs replaced? The banks have been know to be stubborn and hold at a price and if they don't get it, just move ahead with foreclosure.

It is called negotiating, you are doing it and they are doing it.why is $5,000 a big deal to you. Are you willing to walk away over such a little amount? I am just trying to change your perspective.