Short Sale, Terrmites, Call their bluff?

[SD Realtor]

When you play poker as long as you have your strategy set with all of your outs identified then you will do fine. If you want to play hardball then so be it. However what you are trying to do is apply your own speculation about how the bank “should” behave based on your own logic. The problem is that the banks are in this situation due to greed and not logic.

So it would follow then that it could be very logical for the banks to continue to be short sighted and act in a greedy manner.

If you lose the home over the 5k there are plenty more homes that you will not miss out on.

I would say that your chances are somewhat less then 50/50 but you will not know if you do not try. My personal experience is that it has been pretty difficult to get the bank to move on the numbers especially after they have gone through the process of getting the approval.

Let me ask you, how long has it taken to get the approval for the line release?

If you do ask for the 5k then how long will it take them to process that request?

At any rate like I said, don’t be afraid to ask. Weigh your risks. Think about it this way… suppose it takes them another several weeks to approve your request. However in that time loan rates go up and you end up locking in a rate 3/8 of a point higher then you would have locked into had you been able to close earlier because of the delay. So now you get 5k in hand but in a several years you will pay more then that in interest. This is all theoretical and indeed in that same time rates can go down further and you would be BETTER off! Just try to consider all angles. It may not hurt to ask, but if you really love the home consider all possible outcomes. If you just like the deal but are just so so on the home, then go for the 5k.

I would caution that you should be buying the home cuz you love the home, not just because it is a good deal because there will be plenty of good deals.

[PadreBrian]

Good reply.

If you love the place and don’t want the next one down the pike, then fold…but if you can live without it go ahead and call the bank’s bluff.

btw, I would have called the bluff. End all further contact if they back out…then in a week…lol the bank calls you back. you got the deal.

[PadreBrian]

Good reply.

If you love the place and don’t want the next one down the pike, then fold…but if you can live without it go ahead and call the bank’s bluff.

btw, I would have called the bluff. End all further contact if they back out…then in a week…lol the bank calls you back. you got the deal.

[PadreBrian]

Good reply.

If you love the place and don’t want the next one down the pike, then fold…but if you can live without it go ahead and call the bank’s bluff.

btw, I would have called the bluff. End all further contact if they back out…then in a week…lol the bank calls you back. you got the deal.

[PadreBrian]

Good reply.

If you love the place and don’t want the next one down the pike, then fold…but if you can live without it go ahead and call the bank’s bluff.

btw, I would have called the bluff. End all further contact if they back out…then in a week…lol the bank calls you back. you got the deal.

[PadreBrian]

Good reply.

If you love the place and don’t want the next one down the pike, then fold…but if you can live without it go ahead and call the bank’s bluff.

btw, I would have called the bluff. End all further contact if they back out…then in a week…lol the bank calls you back. you got the deal.

[urbanrealtor]

I would have something to offer but I think SD put it well.

Banks generally will do the math.
If they think they can net more as an REO, then they will. Sometimes they can. Often there are variables at play that you cannot decipher. For example, if their mortgage insurance only kicks in if there is a trustee sale, they might be willing to go a lot lower on the market value of an reo.

Bottomline, you really need to define your variables and play your game. If you spend your time trying to bluff them and end up losing something dear (money or a favorite home) you will end up with regret. Focus on what is most important here and act accordingly.

[urbanrealtor]

I would have something to offer but I think SD put it well.

Banks generally will do the math.
If they think they can net more as an REO, then they will. Sometimes they can. Often there are variables at play that you cannot decipher. For example, if their mortgage insurance only kicks in if there is a trustee sale, they might be willing to go a lot lower on the market value of an reo.

Bottomline, you really need to define your variables and play your game. If you spend your time trying to bluff them and end up losing something dear (money or a favorite home) you will end up with regret. Focus on what is most important here and act accordingly.

[urbanrealtor]

I would have something to offer but I think SD put it well.

Banks generally will do the math.
If they think they can net more as an REO, then they will. Sometimes they can. Often there are variables at play that you cannot decipher. For example, if their mortgage insurance only kicks in if there is a trustee sale, they might be willing to go a lot lower on the market value of an reo.

Bottomline, you really need to define your variables and play your game. If you spend your time trying to bluff them and end up losing something dear (money or a favorite home) you will end up with regret. Focus on what is most important here and act accordingly.

[urbanrealtor]

I would have something to offer but I think SD put it well.

Banks generally will do the math.
If they think they can net more as an REO, then they will. Sometimes they can. Often there are variables at play that you cannot decipher. For example, if their mortgage insurance only kicks in if there is a trustee sale, they might be willing to go a lot lower on the market value of an reo.

Bottomline, you really need to define your variables and play your game. If you spend your time trying to bluff them and end up losing something dear (money or a favorite home) you will end up with regret. Focus on what is most important here and act accordingly.

[urbanrealtor]

I would have something to offer but I think SD put it well.

Banks generally will do the math.
If they think they can net more as an REO, then they will. Sometimes they can. Often there are variables at play that you cannot decipher. For example, if their mortgage insurance only kicks in if there is a trustee sale, they might be willing to go a lot lower on the market value of an reo.

Bottomline, you really need to define your variables and play your game. If you spend your time trying to bluff them and end up losing something dear (money or a favorite home) you will end up with regret. Focus on what is most important here and act accordingly.

[SD Realtor]

By far, by very very far, the best way to cope with a short sale is to build all the possible variables into your offer. Use this case as a learning process. In your next short sale offer, make sure you build in a credit for non recurring closing costs, recurring closing costs, and repairs into the original offer. That way it will be included in the HUD that the listing agent delivers with the short sale package. Even though you don’t do any diligence prior to submitting the offer at least you will have some built in cash back. Now by doing this of course you may (will) weaken your offer but at least you will not be quibbling over a few thousand dollars on the purchase of a home worth hundreds of thousands of dollars.

If you are making an offer on a short sale and you are coming in like 20% down I would advise not to weaken the offer in such a manner. However if you are coming in fairly close to the asking price AND there are no competing offers, then yeah go ahead and build it into the offer.

The worst thing as a buyer that you can do to your chances with a short sale is to change things up, which then require another HUD (most of the time) and then throws a wrench into the process. It essentially gives already overburdened loss mitigation departments more excuses for more delays.

[SD Realtor]

By far, by very very far, the best way to cope with a short sale is to build all the possible variables into your offer. Use this case as a learning process. In your next short sale offer, make sure you build in a credit for non recurring closing costs, recurring closing costs, and repairs into the original offer. That way it will be included in the HUD that the listing agent delivers with the short sale package. Even though you don’t do any diligence prior to submitting the offer at least you will have some built in cash back. Now by doing this of course you may (will) weaken your offer but at least you will not be quibbling over a few thousand dollars on the purchase of a home worth hundreds of thousands of dollars.

If you are making an offer on a short sale and you are coming in like 20% down I would advise not to weaken the offer in such a manner. However if you are coming in fairly close to the asking price AND there are no competing offers, then yeah go ahead and build it into the offer.

The worst thing as a buyer that you can do to your chances with a short sale is to change things up, which then require another HUD (most of the time) and then throws a wrench into the process. It essentially gives already overburdened loss mitigation departments more excuses for more delays.

[SD Realtor]

By far, by very very far, the best way to cope with a short sale is to build all the possible variables into your offer. Use this case as a learning process. In your next short sale offer, make sure you build in a credit for non recurring closing costs, recurring closing costs, and repairs into the original offer. That way it will be included in the HUD that the listing agent delivers with the short sale package. Even though you don’t do any diligence prior to submitting the offer at least you will have some built in cash back. Now by doing this of course you may (will) weaken your offer but at least you will not be quibbling over a few thousand dollars on the purchase of a home worth hundreds of thousands of dollars.

If you are making an offer on a short sale and you are coming in like 20% down I would advise not to weaken the offer in such a manner. However if you are coming in fairly close to the asking price AND there are no competing offers, then yeah go ahead and build it into the offer.

The worst thing as a buyer that you can do to your chances with a short sale is to change things up, which then require another HUD (most of the time) and then throws a wrench into the process. It essentially gives already overburdened loss mitigation departments more excuses for more delays.

[SD Realtor]

By far, by very very far, the best way to cope with a short sale is to build all the possible variables into your offer. Use this case as a learning process. In your next short sale offer, make sure you build in a credit for non recurring closing costs, recurring closing costs, and repairs into the original offer. That way it will be included in the HUD that the listing agent delivers with the short sale package. Even though you don’t do any diligence prior to submitting the offer at least you will have some built in cash back. Now by doing this of course you may (will) weaken your offer but at least you will not be quibbling over a few thousand dollars on the purchase of a home worth hundreds of thousands of dollars.

If you are making an offer on a short sale and you are coming in like 20% down I would advise not to weaken the offer in such a manner. However if you are coming in fairly close to the asking price AND there are no competing offers, then yeah go ahead and build it into the offer.

The worst thing as a buyer that you can do to your chances with a short sale is to change things up, which then require another HUD (most of the time) and then throws a wrench into the process. It essentially gives already overburdened loss mitigation departments more excuses for more delays.

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