Posted by steve on May 07, 2008 at 13:22:15:
bank needs to agree to the contract price and TERMS.
Posted by steve on May 07, 2008 at 13:22:15:
bank needs to agree to the contract price and TERMS.
Short sale owner accepted, bank wants more$ - Posted by Sonia A.
Posted by Sonia A. on May 07, 2008 at 11:00:57:
Los Angeles, CA. The short sale house was listed for $350k. Our offer for $370 was accepted on 4/2. The acceptance was signed by the owner. Then the agent said: we’ll see if the bank agrees. Does our signed contract mean nothing? We just heard (5/7/08) that the bank wants to clear $400k which means that they want our offer to be about $429k. Is there no way to get them to honor our accepted offer? In the meantime we’ve taken out a line of credit (getting ready for the down payment) incurred interest charges. THANKS in advance
Re: Short sale owner accepted, bank wants more$ - Posted by Handy(MN)
Posted by Handy(MN) on May 17, 2008 at 15:45:52:
I’ve seen that too. If you think there isn’t much interest (house needs work, doesn’t show well,etc.) and won’t sell soon, wait a few weeks and make a new, lower offer; sometimes that’s worked for me. If it’s nice, good value and you really want it, though, raise your bid if you can, or you may lose it.
Re: Short sale owner accepted, bank wants more$ - Posted by Natalie-VA
Posted by Natalie-VA on May 16, 2008 at 10:46:28:
The seller should have put in a clause similar to, “subject to lender approval of short sale”.
If they didn’t, then the contract might require them to bring the money to closing in order to provide clear title. That’s probably not going to happen, but maybe you can get them (or their agent) to cover your expenses if they didn’t include the proper contingencies.
–Natalie
Re: Short sale owner accepted, bank wants more$ - Posted by River City
Posted by River City on May 08, 2008 at 10:49:52:
Steve is correct. The bank has to agree on the amount of the sales price.
For some reason, people seem to have a problem understanding that the bank must approve the short sale.
Look at it like this: Let’s say you loaned someone $300,000 to purchase a house, and after some problems, they could not pay you the $300,000. BUT, they have found a substitute purchaser of the home for $250,000. Do you think you should HAVE to accept the $250,000 (losing $50,000) instead of the $300,000? The bank is the one that loaned the money and they have their depositors to protect. They have to do their risk analysis and determine just how low they will go. They are not required to do short sales at all. Luckily for you, they will, at a cost to everyone else.