Looking at a house for $79k. But it has 1 loan sitting on it for $240k.
If I was to show my intent on the property and turn in an offer, is the bank going to negotiate the price with me to bring it closer to $240k?
And if I was to buy it for $79k, the $240k financing would disappear correct?
Thanks for the (much needed) guidance,
If someone is offering a house for sale at $79K and there are outstanding loans for $240K then they are either planning on bring a BIG check to closing or they are trying to do a short sale. Most likely, its the short sale route. After you make your offer and the seller accepts it the package will be sent to the lender for their approval. At that point the waiting starts. The bank may well counter at a higher price. Or reject your offer. Or foreclose. Or accept. Or ask for your highest and best offer.
If you do get a successful contract that states you are to be given a clear title (the normal situation) then, yes, the existing loan would go away.
Okay, so its a wait, negotiate, wait, negotiate game.
Awesome. Thank you @Jon Holdman
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