My associate attempted to negotiate a short sale with X that was supposed to go to auction today. She succeeded in getting the auction postponed, but to do so X required a prequal letter.
The only one she had was her own for $500K.
We were hoping to get the note from X discounted by 30K to 40K. But because she was prequalified to over 500K X says they will not discount the note.
That was an expensive lesson!
What does her level of credit qualification have to do with the reality of what the property is worth?
sounds like you are dealing with an inexperienced rep at the bank.
You’d normally submit an approval letter close to the amount of the sales price. Also, it sounds like you need to negotiate better. Just because you’re approved for a certain amount doesn’t make the house worth it. Maybe you can bring in an experienced short sale specialist. I wouldn’t let the bank bully me into buying a house at a higher rate because I had good credit and the ability to pay more.
In reply to all…
I negotiated the second, she negotiated the first. Overall we’re at about 80K in propspective profit, but we were hoping for about 30K more, which X was fine with until they got her prequal letter.