Buyers have to remember that a short sale is not a foreclosure. The homeowner still technically owns the property. The homeowner is trying to sell the property before their lender forecloses on it. Lenders are willing to go along with short sales because there are costs involved in foreclosing on a property. Also the owners or neighbors may vandalize the property, or steal appliances, copper tubing etc from the home. The lender could end up with a home which needs thousands of dollars in repairs.
The seller makes the deal, the lender needs to accept the offer
The general rule of thumb is that a lender will not accept an offer that nets the lender less than 82% of the homes current market value. The lender is represented by an asset manager who may be in charge of hundreds of properties. The asset manager is not going to personally negociate with every buyer.
If you place to low an offer. You run the risk of the lender writing you off as a waste of time. This means the listing agent is told by the lender to not submit any offers from you. With a reasonable offer you might get a counter or an acceptance from the lender. At the very worse you are eligible to submit additional higher offers on the property.
For more information or to see Houston Homes in 24 hours or less please contact Bill Edge at 713-240-2949.
Source: Bankrate.com