I am working on my first short sale. The house has been on the market for a year, and recently reduced listing price to 110k. The house’s market value is 120k. I am planning to stay in the house for 3 years and sell it for a profit. I am currently rent. My questions is
- My agent told me the loan balance is 80k, the offer price I am thinking is around 84k, which will be enough to pay off the loan. Will that satisfy the lender? Or will the lender get greedy, want more than the loan balance, and decide to continue the foreclosure. If that, why they list it as short sale anyway. I know it depends on the lender and who handles the case, but can someone tell me, from your experience, what are my chances?
- My agent told me, since he is not the listing agent, I cannot negotiate with the lender. The listing agent will prepare all the docs (hardship letter, authorization letter) and will negotiate with the lender. If it is true, then all I need to do is making offers, really that easy for a short sale?
- I do not get a chance talk to the homeowner. I do not know why they sell, how far behind the payment. Is this normal if you use an agent?
- My agent try to get me sign the exclusive buyer representation agreement. I can understand from his perspective. But is that normal for investors to sign that agreement. If your agent tell you a potential deal, or you pass a potential deal to your agent, do they also ask you to sign up the agreement?
I really appreciate any suggestions. I will follow up with more details if the deal goes through.