I placed an offer on a short sale property on Tuesday afternoon that was accepted Wednesday morning by the selling party. I am now awaiting approval from the bank on the price.
Ask Price - $95,000
Offer - $90,000
The lending institution is a very small bank that holds their own notes in house. My thought is to approach the bank and attempt to utilize their services so that I can have some more negotiating power to work out the best deal for both parties. The best possible scenario is to assume the mortgage of the previous borrower with zero money down. My realtor sounds optimistic about working something out with the lender but I don't want to count my chickens.
Anyone have experience with tricky short sale solutions like this?
If the bank owns the mortgage in-house you will probably have a much better chance of success trying to work with them. We have purchased almost all of our rentals as short sales from the bigger banks and it can be a long and frustrating process. I would try to leverage whatever you can but usually the asking price is less than what is owed on the short sale so you might be better off trying to negotiate new financing through them.
If you are willing to put some money down then you might be able to leverage the lower asking price but you will probably not get both zero down and less than asking price.
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