Yes A Bank Will Negotiate a Price Reduction on a Short Sale
We still have many short sales in Connecticut, and while their numbers are getting smaller they are still a strong part of the market. In my area of towns around a center hub of Waterbury CT, short sales accounted for almost 25% of all closings in 2016.
I have one short sale going through the process in Watertown CT. We were under contract with 10 days after going on the market. The short sale was approved 2 1/2 weeks after all documents were sent to the bank, and then the buyer's did their inspection.
The property was found to have a cracked septic tank as well as suspicions that the leach fields were ready to collapse. Hard estimates were collected and we submitted a challenge to the lender for a reduction for the value of the repairs. The buyers were not in a position to come up with an additional $30,000 to have the system corrected.
When making the appeal to the bank, the inspection report as well as the estimates for the repairs were submitted. At the top of each document was the State license number of each party who's reports were being submitted.
In addition, the listing would need to be corrected to reflect the failed system should the bank reject the appeal and the buyers were to pull out of the transaction.
After a reasonable amount of time, the lender came back with an acceptance of the reduction and a new letter was offered so that the deal could proceed to closing. New HUDs will need to be prepared once we are ready to close and contract addendums sent forward as well.
Working with experienced real estate professionals as well as a broker with a successful track record on short sales is a must for Connecticut home owners trying to avoid foreclosure. I am here to help Central Connecticut home owners through their issues and get a successful short sale.