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Old 02-21-2009, 10:12 PM
 
194 posts, read 329,393 times
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One of the house that I was interested in just went from 2.2 to 1.9 now to 1.6. It's in 'pre-short sale'. should I wait for it to fall to short sale or foreclosure? 1.6 is a bit high for me in this market, is an offer of 1.3 unreasonable?
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Old 02-22-2009, 12:36 AM
 
Location: Columbia, SC
10,935 posts, read 21,908,917 times
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What is a "pre-short sale"? I think you mean pre-foreclosure which is typically a short sale. Your buyer agent should be able to tell you about it and present an offer on your behalf. You can offer anything you want, but the bank may or may not take it.
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Old 02-22-2009, 06:03 AM
 
237 posts, read 1,057,192 times
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OK, this is just a guess...I think you might have to wait for the home to be in short sale because most likely, the mortgage is underwater. Even if the owner was desperate to sell the home for a loss, he/she may not want to or have the ability to bring money to the closing to settle the mortgage(assuming he owes more than the house is worth). The only option left is for the home owner to stop making mortgage payments and get into a pre-foreclosure situation. That's when the bank would consider a short sale because they're aware they will not be getting all their money back.

We've been house hunting and I've noticed a lot of times where homes were priced high and would never sell in this market, but there is no price reduction for months until all of a sudden the price drops 20-25% and it's in a short sale.

In your situation it looks as if the price has been coming down, so you may just be able to offer the 1.3 that you want to pay. If the owner takes it, then it's a cleaner closing. If they turn it down, you keep looking at other homes and maybe in a couple months, the home will be in short sale and you're back in the game with that home. I don't think 1.3 is an unreasonable offer if the 1.6 seems high in this market. It just might not be taken at this point, especially if the mortgage is more than that amount. Good luck!
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Old 02-22-2009, 10:39 AM
 
Location: Desert Southwest
655 posts, read 1,330,209 times
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Make an offer on what you are willing to pay. Don't be concerned if it is too low. If the bank agrees to the price, you have a great deal. If they counter...then its up to you again to accept or not. I would offer the $1.3 and let it go from there. DON'T fall in love with the home so much that you lose your sensible thinking! There is plenty of inventory out there now and you will find yourself a resonable deal if this one doesn't work out! Being patient is the name of the game when negotiating for a home that distressed.
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Old 02-22-2009, 08:09 PM
 
291 posts, read 909,766 times
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When a home is in a short sale status, the seller is getting "O" proceeds from the sale. The lender or lenders will be calling the shots, and they don't always make rational decisions. I've seen them pass on offers only to let the home go through the foreclosure process and net even less than they could have gotten several months earlier. You can make an offer at 1.3 and see what the banks say. That's a big hit for a bank to take and the odds may be against you. In spite of all the press, the banks are still "for profit companies", however, it's hard to believe that sometimes with the way they act.
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