In the sale and purchase contract, what do you put as the purchase price when you are planning on doing a short sale?
The amount you’re going to offer the bank.
And have the HO sign another with the amount left blank, so when the countering’s done, you can fill out the final version.
I never send my offer with the origianl package. I always send it in after the BPO or appraisal. The BPO, or the appraisal, is the most crutial part of any short sale. They usually fluctuate 10% up or down. (on a 300k property that is the difference of 30k).
You need to do you best to influence the BPO to the bottom of the 10%. By putting your offer to soon you may be paying to much!
You also need justification of why you are offering the amount you are. Comps and repairs are the most common.
BAck up your offer with facts and prove your case. Don;t just offer the lender a certain percentage everytime because some guru told you to. Remeber, most gurus are teaching for a reason… they don;t practice any more and there techniques are most likely flaw or out dated. There some good ones though… I suggest Mark Sumpter (thewealthcollege.com).
The lender usually puts the final aggreed amount and the terms in writing (if they don’t request they do). I have the homeowner sign that package.
I am not sure what JDS is refering to with the blank copy. I have never had a SS play out this way. I am not saying his way is wrong but it is not the way I do things.