Short Sale...comps to the bank?
What is the purpose of sending comps to the bank when trying to short sale? Wouldn't that work against you? Do the banks require it?
What is the purpose of sending comps to the bank when trying to short sale? Wouldn't that work against you? Do the banks require it?
Those that prepare a comprehensive Short Sale Proposal (not simply fill in an application form provided by the mortgagee) include evidence to support their argument. That supportive evidence may include a cost benefit analysis, and a net recovery estimate based upon an opinion of value. That opinion of value may be supported by 'comps'.
A 'comp' is a recent sale of a similar property in close proximity to the subject property. Appraisers compare and apply adjustments to 'comps' in order to form an opinion of value.