The evolution of Short sales!!!

[Ade O.]

I just had a not to plesant experience with a short sale deal I had on under contract in november, so I found the deal on the mls, I put in an offer for 115k a few days later the agent calls me to say that there are multiple offers on the property and that I need to come up with my highest and best offer, so i went up to 118k and he called and said we had a deal, so fast foward to january, after several calls to him, he sends me an email telling me that the bank(bayview) now wants 135k for the property, so I write a detail email explaining to him and the bank how we came up with the offer and that it is a fair and strong offer we also detail the work that needs to be done on this property and also the recent vanderlism(which occured in Dec) to the property and offered to go up to 120k, at the end of the day the bank did not move off their 135k number, I do not know if you guys are experiencing this kind of situation in your market, but for you to have a house under contract for several months only for the bank to comeback with several thousand dollar counter leaves me with a really sour experience with short sales,to me it makes more sense for the bank to do there bpo and due deligence before putting the property on the market with a price that they will accept.

[J Scott]

Originally posted by Michael S.:

Not to take sides here, but it sounds like Ade did some good diligence and presented it to the bank when they upped their asking price (after they already reached an agreement). So it sounds like the bank is just playing hard to get.

Michael S. -

The bank didn't up their asking price. The bank doesn't set the asking price for a short sale. The asking price was set by the seller and listing agent, Ade put in an offer that was accepted by the seller, and then the offer was sent to the bank for approval.

In other words, the seller could have listed it for and accepted absolutely any price; that doesn't mean the bank will accept it. And the bank doesn't even see the offer until it's accepted by the seller.

There was no way to know if the bank would accept the offer or not, other than looking at comps in the area.