Making an Offer on a Short Sale

[Ryan D.]

I've never dealt with a short sale before and unfortunately there really isn't any good information on the pre-existing threads here or on the blog. There seems to be a lot of variables and it doesn't seem like every short sale has many consistencies. The question I have is what information can I request from the listing agent representing the bank that is different from what is provided on the listing? I read a blog post here stating I should request a statement of information and the title report that was run by the listing agent prior to making an offer. Any short sale experts here?

Here's what I know thus far:

List price is 100k

Sold in 2008 for 110k

Listing price reflects the lender's appraisal. And I'm responsible for a 3% facilitation fee. 

[Wayne Brooks]

You want to know what and how many liens are on the property, in order to make an educated offer.  If there is a second lien, it often needs additional money from somewhere (the buyer) as they aren’t willing to accept the token amount offered/allowed by the first to come out of the sales proceeds. 

Example: you want to pay $100k.     

second mtg owed $90k, 1st Lender typically will offer $3-5k, second mtg demands $8-10k....so, your purchase offer is $95k and stated willingness to contribute $5k to second.  

Note: if you offered $5k more in purchase price, the 1st lender will Not add $5k to what they are willing to give the second.

A 3% facilitation fee is not unheard of, just not as common these days.

Bottom line......you want to talk to the “facilitator” to find out the details like junior liens and such, what negotiations have occurred, failed contracts, offer terms, etc. Before submitting an offer.