Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
One time I submitted an offer for a short sale, once my offer was received, I was told it has been sent to the bank, the status of the property changed from "AVAILABLE" to "BACKUP CONTRACT". They still accept offers, but even if a higher offer comes in, they are just backup offers and the listing agent held on to them and do nothing until the first contract falls apart.
Another time I submitted an offer, I was told the listing agent is accepting all offers, but the offers are not being sent on to the bank. The listing agent is screening the offers and at the end send the three "best" offers on to the bank. Even then the property is still listed as "AVAILABLE".
Why is there such a difference in the procedures? Is it because different banks have different procedures, or is this something decided by the realtor representing the bank?
Another question about short sale, I understand the seller (the owner) are typically rubber stamping the contract and there is no telling if the bank will approve the price - especially early on in the process.
Does the contract price make ANY difference to the current owner?
Let's say your offer being 150K versus 200K, and let's take the bank out of the equation, does it make any difference at all to the owner?
The realtor will get a higher commission on a higher price.
The bank will be less "SHORT" on a higher price.
How about the owner? Do they get penalized less in some way? Do they get a 1099 from the bank for the amount "forgiven" that they have to pay taxes on or something along that line, or as long as the bank approves, they are off the hook regardless of the sale price?
If the owner will have to bear a deficiency judgement or receive a 1099 for the difference between sales price and outstanding loan balance, they certainly have skin in the game.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
