SHort SALE, URGENT HELP NEEDED, What offer should I put down?

30 Replies

SHort SALE, URGENT HELP NEEDED, What offer should I put down?

My husband and I are looking for a 2-3 family home to live in and rent the other floor. 

Been looking for a while in the cities of Newark, East Orange,  NEW JERSEY

Our mortgage loan is $361, 000

We found one at in  (Clinton Hill Section in Newark, NJ)

$319,900

We were going to offer 289, but did not realize it was a short sale. 

Based on market, nearby homes "sold as is" what should we offer?

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You can get a lot of answers?

Here's the meat of it,  Banks look at how will you pay them? and how soon (cash is king)

usually stay with in 80% of That they want.

Hop this helps

Greg N

Thanks Greg! Very helpful info. 

So if its for 319,900 I can actually go low in general, just no lower than 255,920 which is 80%? Would a personal letter be helpful to add with the offer letter?

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Thanks Charlie! Wow, great info on short sale on your site. Thanks for sharing!

Wow that was an eye opener. If it was more than one bank, would it be stated on the MLS info?

Originally posted by @Account Closed :

Personal letters wont hurt.  Nothing like hearing  a persons life story.  Brightens up a dreary day at the office.

 Thanks Jacque! Do you have any short sale experiences? Would love to hear :)

I have never written a letter,

Banks want to move as quickly as they can getting this and other off their books. 

Only letter I use is from another bank? proof of funds.

good luck

Greg N 

@Bola Fdipe   You will know whether there are multiple lenders when you run title - but that wasn't the nature of the problem in the case I described on my website.

The first mortgage holder was BofA and the second was Chase as I recall.  BofA approved the short sale price with $3,000 going toward Chase's 2nd.  

Everybody agreed and signed off, but very close to the last minute, Chase changed their minds and said they wanted a total of $8,500 to release their lien.  That meant that my buyers had to come up with $5,500 in CASH to pay Chase at closing.

It couldn't be part of their loan because BofA was still not getting their full amount.  Any additional amount on the loan would have gone straight to BofA, up to the amount that satisfied the 1st mortgage amount.

My buyers were still getting a great deal and they had the $5,500 to cough up, so they went ahead and are now very happy in that home, but it was a 9 month process to get them there.

The Asking price has NO bearing or relation what value the bank may accept.  That price was set be the owner/agent.....the lender doesn’t even know it is for sale. The only value/number that matters is the BPO the lender comes up with After they have reviewed the paperwork and contract submitted. 

As i@Charlie MacPherson ’s example demonstrates......you, the listing agent should have already if they are competent, need to run title to see if there are 2 mtgs, other liens, etc. 

This is the only way to project how much, if any, the buyer may need to come up with in Addition to the purchase price, and structure your offer accordingly.  I had many buyers prepared and agreed to kicking in $10k or more in addition to the purchase price, and lowered their offer price accordingly. 

Originally posted by @Wayne Brooks :

The Asking price has NO bearing or relation what value the bank may accept.  That price was set be the owner/agent.....the lender doesn’t even know it is for sale. The only value/number that matters is the BPO the lender comes up with After they have reviewed the paperwork and contract submitted. 

As i@Charlie MacPherson ’s example demonstrates......you, the listing agent should have already if they are competent, need to run title to see if there are 2 mtgs, other liens, etc. 

This is the only way to project how much, if any, the buyer may need to come up with in Addition to the purchase price, and structure your offer accordingly.  I had many buyers prepared and agreed to kicking in $10k or more in addition to the purchase price, and lowered their offer price accordingly. 

Very interesting perspective Wayne. 

Based on the MLS copy, the current estimated value is $316,000 and the listed price is $319,00

You're saying that the owner/agent wants get the most they can so that they don't have to owe much or anything at all to the lender, correct? 


What if the owner, as per MLS, is an investor corporation (1 lender), as opposed to an individual?

@Charlie MacPherson  

Yes, good thing it was a good deal, had the extra %5,500, and are happy with their purchase.

Based on the MLS copy, the current estimated value is $316,000 and the listed price is $319,0. Also noted assessed value at 295k

Title: 

I only see one 'homeowner' facts, an investor corporation along with address

However, under mortgage records, it reports

1.an individual first and last name, as the borrower

2. Lender: bank name

3. loan amount 363k

@Bola Fdipe No, the owner doesn’t care so much usually how much the short fall is.....but, the higher the contract price the more likely the lender will accept the deal, and close it, which is what the owner wants.  Don’t trust “what the listing says”, it only takes a few minutes to look up mtgs and liens on a property in most places.

@Wayne Brooks Thanks Wayne, I appreciate the help. Which site can I use to look up actual mtgs and liens on the property?

Your county recording/clerk of court office, whatever they call it there.  Most are online.

@Bola Fdipe Fund out if the shirt sale is approved at that price. If it is the bank likely won’t take less without a lengthy process, although closing a short ale often takes a ton of time in any case. Long story short be prepared for this deal to take a long time to close. I feel like for the amount of money you are approved for you could find a conventional deal and save yourself a headache but if you really like the house go for it.

@bola You should offer what you are willing to purchase it for. Without knowing the banks valuation it is not clear what the home may be able to be purchased for. 

@Allan Szlafrok Saw the house today, was in good condition, I am willing to wait it out. But you're right will still look for conventional deals on the side. Been look for a while, ready to hear "offer accepted!" Thanks for your insight!

@Brett Goldsmith the buyer market is competitive for Newark area, as much as I want to offer between 289-295k, I might lose it if I go too low. :// Delving into your site now! Thanks!

@Bola Fdipe What is your goal with the property? If you don't have an "in" on the deal then you need to feel out the listing agent. The only advice I could give is place an offer what you are willing to pay for it based on your criteria. When i'm trying to get involved in someone else's deal I focus on building rapport and feeling out the situation and asking questions that will determine if they are willing to get me in on the deal at a price that I'd like. If I can't be reviewed at a price I want then I would move on. 


First step is getting you offer accepted. The amount owed on the loan, etc means very little IMO. What's important is getting your offer accepted by seller and under review with the servicer. Once the servicer does their valuation more information will come to light.

@Bola Fdipe are you working with a realtor on this? Who is handling the negotiations with the short sale bank? 

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