patrick.net

To answer your questions...

1. Remember that your offer and negotiations are with the Seller. THEIR negotiations are with the bank. You should technically receive a counter in writing and have every right to ask for one. Having said that, there is nothing unethical about the listing agent giving you a verbal heads-up.

2. It is not typical for there to be 2 days to decide, but the reason may be the time of the month. It's likely that the negotiator gave you two days to get this officially wrapped up by the end of business March 31st. There could be some month-end/quarter-end bonus/quota thing happening.

3. It depends on the negotiator. Some expect to go back and forth. Others just give the bottom line and never budge. It never hurts to try...just make sure you have the counters in writing so you're protected in case another buyer moves in.

Good Luck!

I too am involved in a short sale and am just waiting for the bank to counter me 100k lol.

Anyone know of an ethical limit that they will counter me by before they completely just refuse the offer?

I know the demand for those houses + low inventory combined will put this house at about 510k+. The listing price for 400k (which was obviously a marketing price), and I've offered 430k, and was accepted by the seller.

Thanks for the responses everyone.
I just spoke to my real estate agent and he said that the offer that was proposed yesterday from the bank is off the table, and now it is 80k above my offer. Is this even possible? My agent said the banks first offer was not in writing, banks never put offers in writing, and at best send it in an email.
Does this seem legit or am I being misrepresented?

Thats what I thought. It feels like i am getting the runaround from my agent, but he is animate that banks never counter in writing.

Sounds more like a counterfeit offer than a counter-offer

I bid on a Short Sale recently. The seller accepted my offer, and the bank accepted my offer. Then out of nowhere came the fact that there was an 80K second mortgage. They wanted to know how much money I was interested in throwing toward settling an 80 grand debt. The seller offered Chase 20K toward the second and we tossed in an additional $1000 toward that. The "negotiator" for Chase told my agent he didn't think Chase would accept it. It's been weeks and we haven't heard anything.

inkt2002 says

Thats what I thought. It feels like i am getting the runaround from my agent, but he is animate that banks never counter in writing.

He is right. The banks don't counter in writing because you aren't negotiating with the bank. This isn't an REO. You are negotiating with the seller, not the bank. It is the sellers who should put it in writing.

It's reasonable that the listing agent gave you the verbal offer first. If you guys are going to walk, then there isn't much point in wasting the time to put it in writing. Is it perfect? No...but it is not unreasonable.

Your frustrations should be aimed at the loss mitigator, not the agents.

If it's a short sale, deal only with the seller. The seller has some leverage with the bank if they know how to use it. Always put a time expiration on any offer, no matter what your agent or advisor says.
This keeps the deal clean and keeps you from becoming the prey. If they can't make a decision in 72 hours, then walk the deal. Contract offer expired ' time decay ' it's not like there isn't any inventory out there.

Thanks again for the responses.
Zlxr,
Everything you have mentioned already happened. The seller and agent accepted my offer to send to the bank. That was the only offer the bank received. After 2 months of waiting, the bank rep told my agent that they countered my offer (40k more). But there is nothing in writing in regards to this counter. Seems a bit strange.

inkt, can you let us know how much your offer was, and how much the other houses in the area are going for?

Zlxr says

From the sellers viewpoint - when one is surrounded by vulture buyers and vulture Banks - and vulture real estate agents - it’s easy to say yes (at first - because no one lets you back down). Then you start thinking about what your consequences are going to be and whether or not you’re going to come out ok and it’s very disheartening. I would not be surprised if they feel very vulnerable, don’t trust their own realtor, aren’t sure what to do and feel like telling everyone to F Off.

I think this is the most likely case. The owner probably realized he needed another 80K to really get out of trouble. In that case, your realtor should've been honest and told you so. In any case, Good luck

dont_getit says

I think this is the most likely case. The owner probably realized he needed another 80K to really get out of trouble. In that case, your realtor should’ve been honest and told you so.

Totally false and fairly typical of the misrepresentation regarding real estate transactions and the "agent is always sleaze" take that is in abundance on this site. What actually happens in a short sale: the offer is negotiated with the seller with the contingency that the offer is “subject to lender acceptance of a short sale.” The seller has virtually no leverage in a short sale because the lender, the secondary lien holder after the property taxes, is taking a loss that they have a right to accept or reject. Putting a time frame on short sale will result in only having that offer thrown in the trash. Most lenders don’t even assign a negotiator to a short sale offer for 30 business days and then it goes to a loan committee for final review, often another 30 business days are required. Each short sale is unique as far as what the lender will be willing to accept. That's because of a variety of issues, including the possible existence of a private mortgage insurance policy, what the financial situation is for the lender, the amount that the property has currently appraised at, the strength or lack thereof of the buyer’s ability to obtain a loan, etc. The agent representing the BUYER has ZERO knowledge as to the situation of the lender. The lending institution will not give any information to a buyer’s agent due to their legal fiduciary responsibility to their client, the current owner. The listing agent obtains the right to negotiate on the seller’s behalf via a signed affidavit by the seller granting him that right.

Making the statement that “your agent should have been honest” with you is a statement made out of pure ignorance as to the actual mechanics of a short sale. Again, very typical of the ignorance on this site as to how the real estate industry actually works.