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Buyer changing their offer on a SS while waiting for approval.

Posted by Investor on November 12, 2011 at 12:59am in Short Sale Discussions
Here are the details: A house that has a balance off 400k and the offer is 320k which is right at 100.00 per sq foot. The bpo was done 3 months ago and came back at 291k which was low. Their is also MI on the loan. Comps in the neighborhood at the time of the original offer were right St 100.00 per sq ft. Their is now a property in contract for 80.00 per sq ft and soon to be another one at 85.00. The investor just received the file 2 weeks ago. Then I assume it would go to the MI company. The buyer would like to reduce their offer by 25k due to the new comps (the old ones are now over 6 months old). How do you think this impact a SS approval? The home owner is 120 days past due and has said they are not making any more payments. Their hardship was a job loss and a significant decrease in income.

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Replies

  • Jill P November 13, 2011 at 4:57am

    I've had price reductions on short sale approvals, and I've had lenders reject price reductions.  It could go either way... just send it in to the bank and see what happens.  If they reject, start over.  If they approve, carry on.  I'd send the comps in to the negotiator, too, so you prove that there's a viable reason for the price reduction.   

  • Janis Schade November 13, 2011 at 2:57am

    Don't start with a new offer, but turn in a sales contract amendment.  If you turn in a new offer, the entire short sale may begin again.  You may want to consider changing your marketing to accepting backups.  There is a chance your buyer will backout completely. 

     

     

  • Kimberley Kelly November 12, 2011 at 3:09am

    I suspect you will need to cancel the offer, re-submit the new offer and hope for the best.  Or..you can wait until you get a counter, then counter back with supporting comps.  Depends on your Investor.  The MI company will be tough no matter what.  Only 120 days late..I'd say it was over-priced if comps have fallen that much.  We Short Sale List Agents have to have some ability to predict prices, but not be over aggressive in our predictions.  A slippery slope.  Good luck keeping that Buyer.

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