Short Sale Offer

We have an eye on two short sale properties. We know what is owed on them, but are not sure what to offer. I know both houses have sat on the market for months and are due to foreclose at the end of this month. The listing agent said the bank is motivated. Our lawyer said he is seeing all sorts of offer letters, but hasn't given us an idea of WHAT to offer for these properties. Any help would be GREATLY appreciated.

One property is listed at $450,000 and they owe $445,000 and one property is listed at $525,000 and they owe $250,000.






[ Edited by TheShortSalePro on Date 03/14/2008 ]

Approvals are predicated upon fair market value. The days of automatic and steep discounts from FMV are temporarily behind us.

Lowball offers which don't fall into a 'range of approval' don't survie the 'processing' stage to the loss mitigation stage.

How would you find a FMV for a property? Comps?

What is BPO? Offer has to be based on BPO.

So the fact that the property may get bought back by the bank at auction isn't a big deal for the bank? I would think they would want to start unloading some of these houses rather than wait 2-3 years for a rebound of the market.

"So the fact that the property may get bought back by the bank at auction isn't a big deal for the bank?"

That's quite a leap. Who said anything about that?

Lenders are more aggressively seeking short sale offers close to FMV, or their BPO. Informed, and patient retail customers are the prime Buyers.