At this time we don't really know how much a bank will take until they have an offer. Sometimes lenders reject an offer and tell us they need a certain net out of the sale. From that figure we can back in and know how much the minimum offer has to be according to the fair market value in the neighborhood. According to what kind of loan it is the formula ranges from 90 - 82% of fair market value.

I have seen "APPROVED SHORT SALE" but never ALMOST approved. Don't know hot to interpret "ALMOST"

Hello Gmott,

The world of the short sale is ever-changing. As the listing agent of a short-sale property I negotiate directly with the sellers lender. Every lender handles their transaction differently. For example I have a listing right now, the seller’s lender is GMAC. GMAC hires a negotiating team to facilitate all their short sales. I get a call once a week from the negotiator who tells ME where to price the home. He tells ME when to lower the price. On this listing I write “LENDER APPPROVED PRICING”. On another short sale I am working with Countrywide. With them I submit all paperwork prior to an offer and start negotiations directly with Countrywide. I set the pricing on this listing because Countrywide does not give me any guidance. Because I am familiar with how Countrywide works and I am already negotiating with them on this listing I may write something like “almost ready for acceptance, all I need is an offer”. It is my job as an agent to sell my client’s property to as near the mortgage value as possible while remembering that the home MUST appraise in order for the new buyer to successfully get a mortgage and close on the transaction.

I would not steer a qualified buyer away from short sales as a great purchase can be successfully be accomplished. You need a realtor who is familiar and comfortable with this type of transaction and who can also correctly write a contract which will protect your rights as a buyer.

I encourage you to contact me directly for more information as how to accomplish these goals.

Faye Doyle
Certified Distressed Property Expert
RE/MAX Alliance Group
Sarasota, FL
FayeDoyle.com
Fayedoylellc@gmail.com
941-504-7496

We are seeing more and more Buyers who want a Short Sale or a Foreclosure.
They assume that they will get a Better Deal, and More House for the Money.


That may or may not be true in this present market.

There are so many, many houses for sale in Florida,
that you may be able to find a house that is the same or better value
than a comparable Short Sale Property.


The challenge with Short Sales is all too well known -

Unless the house under contract is being handled by an experienced Short Sale Agent,
and unless the Mortgage Holder is anxious and able to get the property off their books,
the Time Involved may be frustrating and discouraging.

---------------------------

Think about buying a house that is NOT in Short Sale Status.

There are boatloads of houses to choose from, and there will be only
the Buyer and the Seller on the Contract,
possibly contingent upon financing and inspections, survey, and appraisal.

There will not be a Bank Board of Directors or a Bank Officer or a Short Sale Department
who can take months to give Approval before you can buy the house.

-------------

Best wishes to you,
Fred

Nothing! "Almost" is the same as not "quite" or "any minute now"

Simply stated, in means the owners are working toward having their sale price be approved by the bank but thus far have not been successful in this effort.

Having a bank approved "short sale" means the bank has agreed to accept the price for which the seller has advertised it for. This is always an amount that is less than what the owner owes to the bank.

Good luck

The Eckler Team

Hi Gmott,

It could mean that they have had an offer in to the bank previously and the offer was rejuected so they know what the bank is going to accept on the property.Or that the bank has told them that they have all the necessary papaerwork in order for the short sale and are ready the start negioating offers.

What is a short sale? How does a short sale work?
A short sale is when the homeowner falls behind on their mortgage payments and needs to sell the home but can't because they are upside down on their mortgage, meaning that they owe more on the home than it is worth. At this point, the bank tells the homeowner that they need to list their home with a Realtor to begin the short sale process. The Realtor then determines the market value of the home and lists it at or around that price. Until the Realtor can bring a sales contract for that property to the bank, they really don't want to be contacted. Once a sales contract is written and submitted to the bank, the bank often takes 90 days or more to respond and in some cases it can take over six months to hear a response from the bank. Often, when the bank does respond, they will respond with a counter offer that is WAY above the listing price, and therefore is too high for the present market. The bank is crunching numbers on how much is owed and how much it WAS worth, but in the current real estate market the home values are declining and the banks don't always have a handle on what the real estate market is doing in our particular area. Some short sales have a payoff negotiated, but in many cases the bank's loss mitigation department doesn't even being evaluation until they get the first offer. The process is always long and drawn out and you don't necessarily get a good deal. Sometimes, waiting out a short sale is beneficial but usually it's such a headache that it's better to wait until the home is in full foreclosure. Because of this bad reputation that short sales have, sometimes a property listing can be tricky - it might say that the home is in "pre-foreclosure" or that the listing is "contingent on lender approval".

Don't be totally close-minded to the idea of a short sale; just be mindful, do research and ask lots of questions before submitting an offer. The easiest question to ask is, "has the bank negotiated a payout?" If the answer to that question is "yes", then the process should be easier and quicker than a typical short sale. Another thing to check out is how many mortgages there are on the property, which is public record. Keep in mind that for your offer to be accepted, ALL of the involved mortgage companies must approve. That can mean more time and more hassle.

A final note about short sales is that if you are using a Realtor who has never successfully negotiated a short sale before, it may be even more difficult to get the property closed. Dealing with banks and mortgage companies is a lot different than dealing with the average homeowner. There are different forms to fill out, special hoops to jump through and extra communication that needs to happen. Consider choosing a Realtor who has extensive experience in these areas.

Shannon Moore, Realtor
Re/Max Anchor Realty
941-276-8142
twomoores19@comcast.net

Hi Gmott-- All it says to me is that the agent who wrote it isn't very experienced. Unless there's something else in the verbiage that indicates the BPO (Broker Price Opinion) or appraisal has been ordered (or completed), there's no almost about it. Some agents think that just because the seller has "almost" finished the paperwork requesting that the bank consider selling short, the finish line is "almost" in sight. Unfortunately, this isn't the case.

BTW, even if the BPO is done, it still may not "almost" be ready for approval. Depends on where in the bank's procedural maze the file is, and how competent the various parties are that are managing it.

Best of luck and Happy House Hunting!

Louise Warring, e-PRO, CSP, CNS
Certified Short Sale Professional
Coldwell Banker Residential Real Estate

Hi Gmott,

Almost doesn't count except in Horse Shoes.

The seller does not have the necessary funds to pay the lender at closing. The lender must approve the sale if the seller is going to be short on the funds. The seller must supply the lender with all the necessary documents (Hopefully prior to listing the property) such as financials, hardship letter, tax returns and or etc. Once an offer is submitted to the sellers lender for approval, the listing goes into pending status but the lender can take several months to approve the sale. Sometimes there are two lenders on the loan and both lenders must approve the sale. This can take even longer. Many buyers have given up on waiting for lenders to make a decision only to find out their offer was not approved. They therefor will only make offers on listings with an already lender approved price. Once an offer is rejected by a lender the seller then knows what price the lender will accept and can list it as lender approved. What "AlMOST ready to be approved "means, is anybody's guess and I would be leery.

My best,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
941-350-4297
tmf4257@mac.com http://www.floridawestproperties.com

It doesn't mean a thing! No Short sale is "almost." It's either approved or in the process. "Almost" could mean - It's in the process and they may have had offers that were turned down or countered. We work many Short Sales and there is nothing, ALMOST in the transaction.
Jim Soda Group
Prudential Palms realty http://www.JimSoda.com
Your Real Estate Resource for the Greater Sarasota, Lakewood Ranch and Manatee areas.
EMAIL: info@jimsoda.com

With terms like ALMOST, SOON, PROBABLY, PERHAPS... one really has no clue as to the actual meaning. Like answered previously- perhaps the seller has made a few initial steps in getting the ball rolling...

An almost approved short sale means that the seller has gone the bank and completed the necessary paperwork to qualify for the short sale. They may have not received word on the banks final decision but are tipping you to the fact that they do not have the funds to close the transaction.