Is the short sale completely up to the bank?

[Hendrix P.]

I am a looking at a property which is a short sale. And, admittedly I'm a bit confused. The property is listed at $25k and I was advised the bank approved that amount. I was also advised that in that $25K there is a $3k settlement. So from what I gathered from my agent my purchase price is $22K plus $3k. Does this make any sense???

Also, I was wondering if that $22k is a fixed price or I can put in a lower offer? Does the seller have any real say in what is accepted or is this completely up to what the bank will offer?

[Joel Owens]

You have 2 main players if there is not any junior liens on the property.

The lender on the loan and the owner.

The banks DOES NOT own the property with a short sale and is merely agreeing to release their interest (lien) on the property for a discounted payoff.

The owner of the property has to agree and go along with the price and terms the bank accepting the short sale wants.If both do not agree then the terms and price and conditions go back and forth until they settle or the short sale doesn't happen.

So a seller can want to sell to you at your price but the bank doesn't agree or the bank agrees to sell at your price but the owner doesn't agree to the conditions of the sale the bank wants.

So without both on board you have nothing.