We recently submitted an offer to ASC for a short sale property at 84k (market value at 115,000 property needing about 20k in repairs) Lender countered at offer of 99k - buyer countered back at 90k. I received an email yesterday from the negotiator that the MI company is now requiring at NET of 96k - Is this deal dead or is there something I can do to counter this??
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Market value once repairs are made is going to be around 115k. As is about 100k which is about what the lender is requiring. The negotiator originally countered us at 99k for contract price. Then came back yesterday with MI company requesting 96k NET. An interior appraisal was completed and I feel that the 99k contract is fair however I have never had to go up against an MI value. I have heard that it is a loosing battle. I hope this clears things up for you.
Stephanie I am a bit confused so please bare with me..... You say market value is 115,000 but you offered 84,000. that is a big difference. I am making an assumption on this but will assume that you believe market value is 115,000 MINUS 20,000 which is 95,000, correct? Market value would then not be 115,000 if 20,000 worth of repairs are needed. Do you know what the BPO amount was and did the take repairs into consideration? Was it a drive by that would not reveal needed repairs and do you have an estimate for the needed repairs. If the lender countered at 99K, the MI company is not going to get a NET of 96K.
You probably need to escalate this file providing you are correct and choosing your battle carefully. If you are just guessing about market value and repairs I would caution to pick your battles wisely and dont spend a lot of time chasing something that isn't there.