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View Full Version : asking price is below what they still owe

Zira
10-19-2007, 12:01 PM
We were told by the listing agent of a house we are looking at that the asking price is below (like $25,000.00) what the sellers still owe on the house. Is this something to be concerned with? I don't know all the details of why. Thanks.
atkjhi
10-19-2007, 02:11 PM
We were told by the listing agent of a house we are looking at that the asking price is below (like $25,000.00) what the sellers still owe on the house. Is this something to be concerned with? I don't know all the details of why. Thanks.

Nothing to worry about. It just means the seller will have to come up with $25K out of their own pocket to close the deal. They may be desperate to get out for a number of reasons. I'm sure the asking price wouldn't be what it is if the seller did not have the funds to close.
OregonLO
10-21-2007, 10:50 AM
yeah, there isn't anything to worry about if they have that money to bring in. I wouldn't recommend low balling them with your offer if they are already bringing in $25,000. They might not be able to come up with another $10k or so...
atkjhi
10-21-2007, 11:42 AM
In my area I saw a home listed for $665K. I checked the property records here and that seller bought the home for $710K. On a foreclosure website I saw this same home listed with a mortgage of $710K...ouch!
Mike Taylor
10-22-2007, 05:09 AM
If I were you I find out a little more details. Are the seller's planning on coming up with that money? Or are they looking to the bank to take a short sale? If it is the latter, you and your buyers need to decide if you are patient enough to deal with this.

Get more information!
Greg
10-22-2007, 07:01 AM
If I were you I find out a little more details. Are the seller's planning on coming up with that money? Or are they looking to the bank to take a short sale? If it is the latter, you and your buyers need to decide if you are patient enough to deal with this.

Get more information!

Find out if they have the funds or if the bank has already agreed to the short sale. If they don't have the funds or the banks has not/ will not agree to the short sale, you could find yourself at the closing table with a seller who can not sell. This has happened before and it can be expensive.
kwaltersmi
10-26-2007, 10:55 AM
Could be a pre-negotiated short-sale with their lender. Find out from the listing agent what the story is. Is the current asking price a steal or is it "market value"?