Short Sale hassle. Need help.

**metallicbluews6** · 02-24-2008, 02:24 PM

To whom it may concern;

In November of 2007 my partner and I saw a house in Chicago that was being sold as is as a "Short Sale" for $349,000.00. My partner and I had already been accepted for a Loan well over that price. We decided to make an offer by the end of November for $312,000.00 with the seller paying for the closing costs. The owner of the house accepted the offer and our Earnest money.
The owner then submitted the offer over to the bank which owns the loand and by January they had a preliminary approval.
My realtor and ourselves then went about getting an Inpsection of the house, comitted to the loan and got an appraisal from our bank at $340,000.00 for the house.
We then scheduled a closing date for February 16, 2008 and the bank that owned the loan sent out their party to get a BPO and the BPO came back at $314,000.00.
A day before we got to the closing date Fannie Mae the the bank that backed the other bank loan wanted to know how much the bank that approved us for the loan appraised the house for. Our bank appraised it for $340,000.00.
Fannie Mae then said they would not take our offer at $312,000.00 and told us that they want the full amount that is owed by the owner of the house which is $335,000.00.
I want to counter offer with a price that they will accept but I do not want to pay more than what is owed on the house. Otherwise it would not be a short sale and I do not see it benefitting us financially. I want to get this sale to close soon.
What is your recommendation as an experienced realtor or buyer on this short sale?

Please Help

Sincerely

Thomas

**RobM** · 02-24-2008, 03:14 PM

Pretty strange now a days as banks seem to be doing all sorts of wierd things. If they go to foreclosure, that $335,000 house is only going to be worth around $270-290k depending on what the foreclosure costs them. I would make that point to them and see what they say. Maybe they think they can get more for the house. If you really want the house, get the home appraised and see if the other bank will flip the bill or split it with you and then you can make a much better decision as to what to do.

**carlam** · 02-25-2008, 06:38 AM

I would ask why did your bank's appraisal come in so much higher than theirs? Ask that they (your bank) do it over because of the difference between the two.

Or ask the other bank to accept an offer on what their appraisal came in at; the $314k? How is it that the two banks are talking anyway? Your bank did you a dis-service by showing your hand - that's not what a good agent does.

Just because you can get a loan for the amount owed does not mean you want to pay off the other person's loan! If you really want the property; raise your offer to the $314k and stand firm. The other bank would be crazy not to accept it, in the end they will lose more than they think they are gaining by this tactic.

**carlam** · 02-25-2008, 06:45 AM

After I read your post again, I have another thought. The seller's bank must feel that there is something else going on here and question if this is really a short sale. They may feel there are some discussions between you and the seller that raised a red flag and feel "proof" is in the appraisal that your bank did.

Maybe everyone needs to go back to the drawing board and get the BPO and appraisals redone.

**metallicbluews6** · 02-25-2008, 08:53 AM

I do not know the seller. I am a first time home buyer and am new to purchasing a home. I do not know if it raised a red flag when we got our appraisal and they got their BPO. I just want the house for my self and wife.

Thanks

Thomas

**carlam** · 02-26-2008, 03:07 AM

Hey Thomas, I'm not accusing you of anything; relax. I'm just saying something is not right here. Banks don't typically talk with each other about a sale; something triggered it to happen. Speak with your agent, have them find out what is going on.