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Old 04-15-2009, 09:13 AM
 
Location: Ridgewood NJ
592 posts, read 2,093,032 times
Reputation: 315

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Hi, looking for some ball park numbers for those of you who have done this. I am looking at 2 bank short sale properties around pretty good areas in jersey.

1) asking 320k, owes bank 390k
2) asking 375k, owes bank 400k

What's a good offer price that the banks will consider?
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Old 04-15-2009, 09:16 AM
 
263 posts, read 499,568 times
Reputation: 34
Are you sure?

"Short sales promise a lower-cost entry into home ownership, but instead deliver endless delays, constant disappointments, and lenders who go inexplicably silent, unwilling to communicate with buyers and agents, sometimes for months on end.”

Short sales given short shrift by lenders | Philly | 04/15/2009 (http://www.philly.com/inquirer/business/homepage/20090415_SHORT_SHRIFT.html - broken link)
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Old 04-15-2009, 09:28 AM
 
Location: NJ
386 posts, read 794,779 times
Reputation: 187
Agree with Half. A lot of pain for minimal gain, if any.
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Old 04-15-2009, 09:40 AM
 
Location: Youngstown, OH
182 posts, read 512,068 times
Reputation: 88
Welp, I have an offer on a short sale and know the waiting time is 30-90 days to even receive word from the bank if your offer was accepted. To wait is easier said than done.

I made a full price offer. The price was VERY fair and the listing agent said if I made the full list offer, she would not take any others and submit it to the bank. However, sometimes prices are so low on properties that agents will collect multiple bids to see who goes the highest (often times above list price) and then submit the "winning bid to the bank". Even so, the bank has generally not agreed to take a certain price for the house yet and may counter back at a price HIGHER than list because their appraisal (not conducted till after a bid is submitted) may say the house is worth more than list.

It's a lot of heartache. But- if you just HAVE HAVE HAVE to have this house and no others that are regular sales AND the price is fair, I would say to offer at least full price. It's the best, if any chance, you'll have.

Keep us posted on your adventure!

Jenn :O)
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Old 04-15-2009, 10:38 AM
 
587 posts, read 2,074,598 times
Reputation: 225
what i heard is the banks will not accept anything under 80% of the balanced owed. That is the absolute minimum, but im not saying you will defiantely get approved if you offer 90% each case/house is different. In any case you will wait months for a reply and in that time somone can submit a higher offer.
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Old 04-15-2009, 11:36 AM
 
268 posts, read 727,840 times
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I also recently bid on a short sale, house was in move in condition, but not updated since it was built 30 years ago. Nice piece of property, but needed a lot of effort and a decent chunk of change to make it really nice and bring it up to date. Anyway, my final offer was 11% under a reduced list, which is my opinion was a gift to the seller all things considered. There were multiple bids on the property, so I doubt I'll get it, if not oh well. It's been about 10 days since my final offer was submitted, I'd be suprised if I hear back by the end of this month.
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Old 04-15-2009, 11:51 AM
 
364 posts, read 781,874 times
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Short sales and foreclosure are the ones that form 45% of transactions these days. So I would suppose banks are more "willing" now-a-days.

I know a house in central Jersey that was on the market for more than 6 months as short sale. The owners finally got an offer and accepted it and sent to bank.Then the owners stopped showing the house and asked bank to accept or reject the offer before they start showing the house again.

The bank came back in 3 weeks and the property is under attorney review last time I checked.

Good luck.

What is your location?
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Old 04-15-2009, 12:14 PM
 
268 posts, read 727,840 times
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Quote:
Originally Posted by mumra View Post
what i heard is the banks will not accept anything under 80% of the balanced owed. That is the absolute minimum, but im not saying you will defiantely get approved if you offer 90% each case/house is different. In any case you will wait months for a reply and in that time somone can submit a higher offer.
This is not true. The price the bank will take typically depends on the BPO (Broker's Price Opinion). Basically the bank has 1-3 agents come in, look at the house and then determine how much they think it is worth in the current market. This number is what the bank uses to determine how much they will accept for the property.

It has been said that banks will typically take offers less than 10% of the BPO. Not sure if it has changed in light of the current crisis or not. I'm also pretty sure it varies from bank to bank and market to market.
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Old 04-15-2009, 12:26 PM
 
Location: Martinsville, NJ
6,163 posts, read 12,220,941 times
Reputation: 3979
Quote:
Originally Posted by gagaliya View Post
Hi, looking for some ball park numbers for those of you who have done this. I am looking at 2 bank short sale properties around pretty good areas in jersey.

1) asking 320k, owes bank 390k
2) asking 375k, owes bank 400k

What's a good offer price that the banks will consider?

There are too many variables for anyone to give you a real reliable answer.
What does research of comparable sales tell you is the right price?
If the bank has reason to believe the sellers have the cash, they might not accept a short at all, and will insist on being made whole. If the sellers have no money and no ability to pay anything over the buyers price, and they bank gets a brokers price opinion that says the property should sell foror $350, they might jump at any offer that high.
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Old 04-15-2009, 12:28 PM
 
Location: Martinsville, NJ
6,163 posts, read 12,220,941 times
Reputation: 3979
Quote:
Originally Posted by Delphi View Post
Short sales and foreclosure are the ones that form 45% of transactions these days.
I'd be interested in the source of that stat, as it appears to be wildy innacurate for my neighborhood.
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