09-08-2011 01:44 PM
I currently have an offer in on a short sale property for about 2-3 months now and the lender countered my offer and asked 24K more. I was wondering if I'm able to counter the banks offer? Will that prolong the process for another few months? My agent says it's better to just accept if I really like the house because if we counter the bank will just look at back up offers instead. The reason my wife and I are thinking about countering is because the are some repairs that needs to be done on the property.
09-09-2011 08:50 AM
I do not want to get in the middle of your existing agency relationship, however, it appears that you are looking to confirm what your agent has explained to you.
Yes, negotiating further with a short-sale lender will generally prolong the process further. Often, the short-sale lender does not actually have the decision-making authority - the Investor(s) who actually own the loan have that authority. So, it sometimes feels like starting all over again when you attempt to negotiate a short sale price. Unfortunately, it is hard to predict how long it will take to receive another short-sale decision.
Bottom line: the short-sale lender paid for a report in order to determine the current approximate value of the property. And, unless you are paying cash, your lender will also obtain a property valuation (appraisal report) in order to determine the approximate market value of the property so that they can make their loan-approval decision. And, you need to feel that you are paying a fair price - equal to, or less than the value of the property. So, in the end, all 3 parties need to be on the same page. Ask yourself:
09-09-2011 10:25 AM
#1: You can always counter a lender.
#2 Congress passed a law requiring a 30 day response time on any offer. (affective Jan 1, 2011)
Ask the lender to check and perhaps he will be reasonable.
I purchased a condo last year form a lender and ten days prior to COE he tried to raise the asking price $15,000.
I sent him a attorneys letter showing him a full price offer , with the agents advertisement BANK APPROVED at the asking price. Along with the signed acceptance from the seller plus comparable on the value of the property noting that it had been stripped by the seller.
The letter also indicated if they cancelled that a I had other legal options I could pursue!
This was e-mailed to the lender and three hours later we had written approval of the short sale at the advertised price.
Lenders these days are not ethical and have little integrity.
09-09-2011 03:38 PM
Yes you can do it, i did with BofA for six months, and finally the bank accepted my offer.
If the lender made his offer then you make one more, for sure the lender is going to lower the price and then you accept it.
09-24-2011 09:58 AM
i made an offer on a short sale , the bank countered , i countered with there price if the bank would fix the defects [REPAIRS] if no repairs then i would get the $ amount and offer the original $$amount the bank countered with my offer plus $650.00 i grabed the offer its now rented :smiley wink: jr