Negotiating A Short-Sale - 2 Questions

**AugustaREGroup** · 04-19-2010, 05:30 PM

Hey guys, Just had 2 questions concerning short sales.

1)

What rights does the buyer have in a short-sale. Ex: Buyer puts in an offer for a short sale, and gets an accepted offer. After many complications... (liens, owner filing bankruptcy, etc.) the bank looks like it is going to foreclose on the property. 1. Does the buyer have any right (pre-foreclosure or after the foreclosure - first right to the property?)

2)

Home for sale slightly under what the seller purchased the property for. Not behind on payments, etc... but can not accept offers 50K below asking because he can not come up with the $ amt. Can the seller at least talk to his bank about a short-sale if he is not in financially distress. If it makes more sense for him to walk away from the property then continue marketing the property, etc.

Please let me know if I can be more specific on either of these questions or can shed anymore light.

Thanks for any advice.

**minnesota-mls** · 05-13-2010, 08:34 PM

Great questions.

Regarding your first question, it does depend upon the lender. However, I have generally seen the bank take the property back as an REO and then offer it for sale.

Sometimes you can get your foot in the door if your agent can get in touch with the asset manager for that lender.

Regarding question #2, in our market, we have found that a seller can short sale a property only if there is some sort of hardship.

**Greg** · 05-14-2010, 05:15 AM

The buyer has no rights in the short sale. Any money you spend will be lost if it goes to foreclosure.

One of the requirements of a short sale is the seller has to prove a hardship.

Keep looking.