by Sean Hess (Sean@StAugTeam.com), Broker and Manager for St. Augustine Team Realty (www.StAugustineTeamRealty.com). Join us on Facebook.
How can the bank raise the asking price in a short sale?
Duh, because they own the mortgage. Because maybe their net would be better at a higher price than the seller is offering it at.
The bank can raise the asking price on a short sale.
The seller owns the home and sets the price to try and sell it, but it is the bank that’s on the hook for the loss. So the bank has to look at the price and see if it will bring an acceptable net.
“Short Sales are anything but typical,” said Grants Pass, Oregon, Broker Sharon Vest in a recent online post. “Just remember, the bank or lender is under NO OBLIGATION to approve the price and in many cases they prefer to simply go to foreclosure rather than sell short, especially if there is mortgage insurance or any other funds available to subsidize the payments.”
The thing is, you can’t be worried about what the bank thinks the best price is, or what the seller thinks the best price is. Instead, you have to be worried about what the best price for the HOME is. If you’re getting a good deal on a property and the bank raises the price $5000 and it’s still a good deal…take it, and quit whining.
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