Real Estate Savvy People

Amber030583

My fiance' and I put an offer in on a house right after Thanksgiving. It is a short sale. Here is some info on it.

House purchased 2008
Purchase price 243,000
Original Asking Price 199,900
New Asking Price 173,900

Our Offer 150,000
Yes, we know this is low but wanted to have some wiggle room

The owners signed off on our offer. Then it had to go to the bank that mortgaged the owners loan.
They came back to us (after a month of waiting) with a 9 month old appraisal of 189,900
They want us to pay that.
We asked them to get a new appraisal. (our realtor knows it will come back lower)
The bank will not do another appraisal until we up our offer to 160,000. That is a jump of $10,000!!!

I don't think this is right. What are your thoughts and insights? It is almost like they are "bullying" us to buy the house in a weird way.

I appreciate any and all insights. :flowerforyou: :flowerforyou: :flowerforyou: :flowerforyou: :flowerforyou:

Voncreepy2

From what we were told about a short sale, this is the norm. The bank wants the max amount. Not right but you can do one of two things, You can meet their offer of 160 and they may want more.....or you can tell them no and wait it out. Are the people still in the house? That was the case with us. The people were living in the house mortgage free under forecloser and bankruptcy and the bank was piddle farting around wanting too much money from us. WE finally said heck with it and bought another house in our price range. If you have the time to wait around then go for it. Good luck. I heard short sales were VERY frustrating and our realtor told us they should be called long sales. We waited a month and didn't even get a response on our offer!!!!

sillygoose1977

I feel for you. Short sales are so frustrating. I bought mine on a short sale and it was agonizing. In the end it was worth it because I got a great place for so cheap. You could always offer to get your own appraisal.

tmcowan

In most real estate contracts there is a clause that should be checked that it will be subject to appraisal. If it does not appraise out the bank will either need to lower the sales price, make up the difference with your own cash or you can walk away from the deal getting your earnest money back. In this case, if the appraisal comes back lower the bank will most likely lower the price to the appraised value since the majority of purchases these day are done with financing and the lender isn't going to lend you more than the house is worth and the bank doesn't want to own the house. Your lender will contact the appraiser that will be indepent and they will receive a copy of the contract knowing how much you're p[aying for the property. The appraiser will go back 6 months to look at comparable solds, it's very rare that they go back further than this time frame. The sale will still most likely take some time because it's a short sale and there is truly nothing short about it. Did you ask for any inspections on the property? I'm licensed in Illinois and Iowa so this is what would happen in this area, sometimes things are different in different markets. I hope this help, if you have any other questions, feel free to send me a message.

janesmith1

Walk away! Short sales are HORRIBLE & takes literally MONTHS of anxiety, and most turn to crap anyway! Just say no, this is my final offer, take it or leave it, walk away and find another house. I've been through this process. Lovely house too, but in the end it all turned to dust. Continue to look for other houses.