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Can I offer less than the asking price on an approved short sale?

October 19, 2010

Can I offer less than the asking price on an Approved Short Sale?

         

Central Coast Coastline

Central Coast Coastline

The answer to this is, yes, definitely.  An approved short sale is a short sale where the bank has already indicated acceptable price and terms.   As the HAFA program comes into greater usage, we will supposedly see more approved short sales on the market.  The HAFA program provides a way for sellers to get an approved price on their short sale before listing it on the market. 

The advantage of bidding on an approved short sale is that you know the bank is open to short selling the house.  The disadvantage is that the bank may be married to the approved price.  Even if market conditions have shifted, some banks will stick like glue to a previously approved price.  If enough time has passed that they can justify ordering another appraisal or Broker Price Opinion, you may be able to sway them.  However, I often see properties fall into foreclosure for the very reason that the bank will not accept an offer that is on the table that is below their approved price. 

Bidding on short sales and foreclosures is a complex process. If you are in the market for a short sale or foreclosure property (REO) in the Santa Maria, Orcutt, or Five Cities area, please contact my office at (805) 878-9879 and schedule a consultation.

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