Listed SS - questions

[George P.]

Don't have any experience with mls-listed short sales, or any short sales for that matter.
Found an owner-occupied condo SS that is listed for almost 4 months (as of today). Initially listed for 135k, now at 89.9k. For a rental, the property would need some updates, I figured no more than 5k (clean the carpet if doesn't need replacing, paint throughout the house, paint the kitchen cabinets (hideous diarrhea-green color). To retail, it'd require more (outdated kitchen, old appliances, paint).
I intend to buy and hold (can rent for 1200/mo.)
If the property was updated, it'd retail for around 90-95k. On its best day in today's market.

Mls remarks say (among other things):
*1) "Approval in hand!!", - does it mean the bank will likely sell for 89.9 without mich hesitation and will drag feet if received a lower offer?

*2) "Pending release." - is that something to worry about from the buyer's perspective? Is the seller's agent obligated to disclose the contract price and reasons for not coming through?

*3) Cash or hard money only. - (The property is not a wreck). I do not want to purchase with cash. I'd rather do conventional with 25% down (have a pre-approval in hand). I guess you don't know unless you ask, but does it mean the bank won't consider any non-cash offers?

*4) How likely are the banks to counter in such instances? If I want to pay no more than 75k, should I offer 70k and have some room to negotiate, or rather lay the cards down and offer 75k ?

[Cheryl C.]

I've bought a number of mls listed shorts and have two under contract now.

You can certainly offer lower than the approved price; what they will take is another matter. I got a call the other day from an agent that I work with. Another agent has a short at an "approved price" that has fallen thru 3 times (I don't know the reasons) and the asset manager is looking for any offer to get rid of it. By "any", my guess is up to 20% below approved price - but who knows?

"Pending release" means the current purchaser has bailed on it and they just need a signed release from him/her.

"Cash only" tells me that the condo development no longer qualifies for conventional financing (too many investors/delinquent fee's/ and/or other issues.

The selling agent may not be able to disclose too much info to you, but you have a right to know about material facts that affect the property. I've heard everything from "financing fell thru" to "the buyer flaked". Who knows what the truth is.

Whether they will counter? Some will, some won't. I had an offer in on one that was rejected. I waited a couple weeks and put in another offer 8K higher. It had to be kicked upstairs for approval (due to the low number) and, as luck would have it, a better offer came in and was accepted.

Hope this helps.

btw - I just had a short come back from the bank with 30K price increase. The lister said the bank wanted another bpo and, unfortunately, there was a recent comp that was very high :(