I placed an offer on a short sale about 6 weeks ago, and I still have heard nothing form the seller or the lender.  I was told that short sales are time consuming and usually take a miniuim of 60 days to notify the buyer.  Is this accurate??How can I find out if my offer was accepted or still pending? 

Ricardo:

I woudl first hook up with a knowledgeable REALTOR.

You cannot simply choose to do a short sale. The lender will need to approve one and it has to be based on a documentable hardship (loss of income, illness, divorce, other financial, etc) that prohibits you from being able to make your payments going forward.

It is good that you are current on your mortgage, but doing a short sale will impact your credit (although not as significantly as being foreclosed on for non-payment). I woul dget in touch with your lender right away to find out wat you need to do.

If you need a referral to a qualified agent in your area please let me know - I have a great referral network.

Maxine - we do not use attorneys here in California. The process is handled through an escrow company. Certainly if one is concerned about legal matters a real estate attorney should be consulted.

I would think that having an attorney review the contract before approval would make sense since a short sale contract IS between a buyer and a seller. The bank is a 3rd party.

David:

Good question, and not an easy one to answer. In some markets short sales are selling at asking or above, depending on the market value and the appraisal (BPO or Broker Price Opinion) the bank uses to determine how much they are willing to accept. In others, and depending on the location and condition, they sell below asking. You can expect that there will be multiple offers which can also impact the final price, especially if people bid up the pricing.

I cannot advise you specifically since I do not know what market you are in, etc. I would get the advice from a knowledgeable REALTOR who can provide assistance with the offer strategy. The offers that are already in place can play a role here, too. If they are all above asking then you know what you need to do if you want the home.

If you need a referral to a qualified agent in your area, please let me know - I have a great network of folks I know all over the country.

Jeff

Hard to say. The bank will decide on the merits of the offers as compared to the appraised value or BPO (Broker Price Opinion). Getting the most money is usually pretty important but depending on the decision maker they may be considering other factors, such as not needing a loan. After all they want to consider all their options to get the best deal. Best of luck.

 I have a questions about pricing in short sale house... the stimate value of the house somewhere in 400 to 500K... the listing price is 350K.. sold as is.. The house was built in 2006...Problem with the house is they punch the wall, broke the door and windows (maybe 5 windows), the lights are distroyed, kitchen appliances are not there anymore, wrote something on bathroom wall  and no heater tank... Do you think this house is worth the price of 350k or more?  

There is no way for me to evaluate the value of the home since I don;t know the market, recent comps, etc. I would talk with your agent, or get a reputable agent who knows the market adn who can help you determine what the value might be.

Keep in mind that the lender(s) will have BPOs done to evaluate this as well, and that is what they will likely use as their guide to what an acceptable price will be.

Greg - I'm afraid I cannot provide a specif number. I have seen some cases where the differential is less than 25% and some where it is closer to 35-40%. It really depends on the bank as well as what the BPO (broker Price opinion) tells teh bank the property is worth in that market.  I see many properties, at least in my area, selling at and over asking, with multiple offers.

Some banks will counter, some will accept the one offer that was submitted after being accepted by the seller, and some will some back and want to see allt eh offers or perhaps will ask for "best and final" offers. Again, it depends on the asset manager and the bank.