Contract And HUD 1 Requested Prior To Negotiating?
Hi! I am working on what is possibly my first short sale. I have been in contact with the lender (WA Mutual) and was attempting to negotiate the short sale when I was informed that they require a sales contract and a HUD 1 before they will even consider a short sale. From my understanding of short sales, I don't believe this is typical, or is it? How can I know how flexible they are if I can't negotiate prior to signing a contract with the seller? Should I just low ball it and hope that opens the doors to negotiations? The home is a 2/1, older home. Owner paid $82k a couple of years ago, bank is owed $78k and tax value is 41k! I was hoping to use the low tax value to help pursuade the short sale. Does anyone have any advice on how I should proceed? Thanks!
Paige
I have done two where they wanted the P&S and HUD1 as part of the short sell package. I have done two where they wanted to get the BPO done and know their position prior to negotiating.
About the only thing you can use to lower the value is their percieved FMV of the home. This takes into account the like sales in the area and the condition of the home.
Put in an offer via the P&S and HUD1 for a low offer. You can always come up.
Brenda
Hi Paige,
The only thing to expect when doing a short sale, is to expect the unexpected! Different banks have different rules, and there are very few things in short sales that are absolutes!
When in similar circumstances, I pull the lowest (most recent) comps that I can find, pictures of areas of the home that need attention, and sometimes even the crime rate statistics from the local police office.
After you have made your informed decision on what you feel the "real" actual value of the property is, make them an offer that is "Just Tasty Enough", that they just might take it!
As Brenda stated, start with a softer number, and you can always move up if needed! Be cautious about blasting them with a rediculous offer, because your calls may not get returned at all!
Best of Success!
BAMZ
they absolutely want a starting point. they're not going to give you a first number - you know the old addage, first one to say a number, loses (or something like that). just write up a hud-1, follow everyone above's advice and put an offer there, this will open up negotiations and they'll most likely counter - if you're even being reasonable.
once you put the offer in, they'll order the bpo - if they haven't already, in the past year. after that comes back, they should counter - if they accept, you bid too high!
Great advice from all of you. Thank you!
-Paige