Short Sale Purchase

1 Reply

My name is Dondi. I'm looking at a house in Gatlinburg TN. It will be used as a vacation home for us. It's currently on a rental. I don't know for sure yet if we will keep it on a rental for us yet. Mostly likely we will but that's not the main reason I'm buying it. That part is actually a plus for this specific purchase.
The house is currently sold as a short sale right now the price they're asking is hundred 40,000 it's hard to get comps in this area do two houses being different sizes different square footage so I'm going by the square foot what I'd like to know is if I can actually come down on the price that the bank is asking for do they normally take a lower price than what they're asking for I would assume so but I just want to check and if so how much lower do they usually go thank you in advance

Short Sales can be tricky for pricing purposes as the investor (owner of the actual loan) is the one that dictates what they will actually allow the property to be sold for.  Unless it is a government backed loan there is no way to know what amount they will actually accept.  If the home is in need of repair it is always a good idea to actually submit quotes on the required work w/ the offer to justify your offer amount.  The lender/servicer will really only consider repairs that are necessary to make it habitable.  If the repairs are cosmetic in nature only, then they typically won't put any weight into the repair quotes.  One other strategy that works as well is if they will release their appraised value and you can prove it is too high via comps in the area then you can request an exception or challenge their value.  Good luck!

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