Short Sale Offer
Ok, I've gathered all my short sale information and I'm ready to make an offer to the bank. The trouble is, I'm not quite sure what to offer. Let me give you the details...
The loan payoff is ~268k, with ~10k in back taxes and a lien for ~7500. The comps on the house are a grey area, but I believe the FMV of the house is ~240k with an average sale time of ~4 months. The house was appraised in 2001 for ~300k and the assessed value is 260k. The house is about a year behind in payments. No repairs are necessary, it is in excellent condition.
I think the assessed value and appraisal are the key bothersome issues at the moment. A case could be made for a higher selling price, but due to lower priced housing built within the last two years, I don't believe it will bring that much. I've assembled my packet to justify the FMV I determined. My question is, how much should I offer the bank? I think an offer of ~220k is reasonable, but I wanted to see what ya’ll thought….
Regards,
Chris
[addsig]
Obviously the FMV is important. You think it is worth 240, but there was an appriasal three years ago of 300. That is a huge difference. In FL a 2001 appraisal for 300 would mean it is now worth about 500k. But I do not know your area. If there is a decent amount of equity in the house and the house is in excellent condition, you have almost no chance of a SS. But of course, there is no harm in trying. If there is a lot of equity, start thinking of forebareence and subject 2.
Brenda
The bank suggested the short sale. A lot of new housing has been built in that area and it is mainly of the "cheaper" variety. The house has a lot of nice features, but would you rather pay $300k for a 3000 sq ft house or $180k for a 3000 sq ft house? Maybe Texans are just cheap :D
-Chris
[addsig]
The most important element is the BPO. This is where the lender gets its FMV of the property. Meet the agent with low comps. Be nice, but talk straight with the agent. Tell them that you think the house is worth _____ because ________. Do not insult them, because they do have some expertese. Tell them that you are working a short sell and you and the bank are trying to get to ________.
Brenda