Short sale where bank hasn't approved price

[Christina R.]

There is a short sale on the MLS in my market that is very, very close to where I live. If I were to someone acquire this property I would rehab and it a sell it. I have a few questions -

* Is the listing agent obligated to note in the MLS remarks (viewable by the public) that it's a short sale? I noticed the "low" list price relative to my neighborhood which is what made me look at it closer. I emailed the LA and asked if it was an REO, to which she replied no, a SS. I thought that either one of these had to be notated in the listing remarks viewable by the public.

* There is one bank. According to LA, the bank wanted it up on the MLS but has not approved a price, therefore the list price is one . . I'm not experienced (obviously) in SS so I don't know if they randomly picked this one or what.

* Is the LA obligated to submit any offers? There is a sold comp that is very comparable in terms of location and restrictions on building and I would be confident using that comp, adjusting downwards to be ultra conservative in submitting an offer. However, using the ARV less 65-70% minus repairs = MAO is it even worth it with a short sale? Are banks still trying to get as much $$. This is a BIG national chain that has this one. Is it true that by law SS must close within 30 days of an accepted offer now?

* Does it help to offer directly to LA and let her double end the deal with the rehab listing?

Sorry if these questions have already been answered or just too ridiculous to ask but since I can literally see this house, my interest is very peaked.

Thanks in advance for any suggestions,

Christina

[Bob C.]

YES Monnnnnths.

This is what I've been doing. I haven't had a deal happen quicker than 6 months. I have a few now approaching 10 months and no end in sight.

Let me add to what has been said....

To get an answer from the bank, they need to see a binding contract (this has been said)

To get to that

-You have to have done your home inspection ($$)

-You have to pay lawyers fees for contract work (in NY anyway). Not necessarily up front, but you'll get a bill for hours when the deal goes sour.

-You have to pay for (at least a preliminary) title search

-Some towns require a well test before they give their "muni's". No matter what the local protocol is, the bank will insist you pay for that.

-You have your earnest money tied up for months (Typically, around here 10%)

And if that were not bad enough... 10 months later the bank says they want $30k more because the the outside of the house is pretty and the BPO is high. No regards for the frozen pipes and holes in the roof.

Deal killed. House continuses to deterioate. I wait for it to go to auction - maybe in a year or two. (forclosures around here are running 5-6 years)