Hello BP Community!
Since this is my first short sale, I thought I'd poll all of you for some help.
Here's what we have going on: the cash I have available to me is less than the amount listed, but I believe I can move the property quickly or have it rented out within months--after a couple of repairs.
So I have a couple of questions:
How likely is the seller/bank likely to lower the price? How long is a typical hold nowadays? If I'm paying in cash, what can I expect in closing cost?
Any help would be greatly appreciated!
If your question is can a short sale sell for less than its listed price? Sure it can. Its really going to come down to what the BPO comes in at.
Far as closing costs on a cash purchase - Not sure how different Illinois is but here in CT a cash buyer would basically just pay their attorney fees and cost of title insurance if purchasing, along with perhaps some prorations for real estate taxes/fuel etc.
It depends on how competitive your market is and how reasonable the price of the short sale is. If they are already well below market they are probably unlikely to lower the price further because they probably have other interested buyers. Also I would expect closing costs to be the same as a normal sale which in my area is usually each to pay their own closing costs and escrow fees.
Based upon your description this deal sounds like it has already gone through a foreclosure and has become a Bank Owned Property. Which means the occupant/owner is long gone. It does not sound like you are negotiating a short sale. A short sale would indicate you are negotiating with a seller and getting the bank to go along.
You are negotiating with the bank for the best price possible. Make your discounted offer and see what happens. If they counter and it is a good deal then move forward. If they refuse your offer wait a couple of weeks and make it again. Lather rinse repeat until something happens.
As for closing costs the bank will try and get you to pay most of them.
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