Confused on Short Sale counter offer

[khogg]

Hi all. I know there is a short sale section on the forum and that this is a repost from there. I know that some members don't always look at both, and wanted to get opinions.

Please help if you can, or have any insight.

I am buying a short sale. Current servicer is Wells/American servicing co. All addendums and requirements have been met by homeowners. Now I am negotiating with the bank. My first offer was countered to what negotiator referred to as FMV. Is this "fair market value", or "full mortgage value"? It is very close to the mortgage value.

This offer was waaayy to high for me. I submitted 2nd offer. They responded with "investor wants 85% of FMV" also stated was that seller will contribute $5k to closing and $5k to escrow. This is where I am confused. It says "seller" will contribute! I happen to know that the people who lived in the house (abandoned btw) will not pay anything (I don't fault them). So, who are the "sellers"?

Last thing. On the "offer worksheet", it has a history of our negotiations. On the bottom line it lists the "net offer". Is this the figure that includes these "seller" contributions?, and/or does that "net" number include realtor commissions?

Thanks for any help and input. It will be verrrryy appreciated.

[Cat Damiano]

Hi khogg,


Do you not have a real estate buyer's agent helping you with your transaction? They should be able to handle these types of question with ease. They are earning a commission from the sale, and part of their responsibility would be to go over the contract with you until you are able to understand the transaction and what it entails.

[khogg]

Hi khogg,


Do you not have a real estate buyer's agent helping you with your transaction? They should be able to handle these types of question with ease. They are earning a commission from the sale, and part of their responsibility would be to go over the contract with you until you are able to understand the transaction and what it entails.

Thanks for the reply Cat. Yes we have a buyers agent, however the terms set forth are very vuage. Also, I don't think this is a common thing for him to deal with. I know I should be working with someone who knows all the in's and out's, but short sale are a little rare in our market.

I would still appreciate any help/ideas defining the terms in the OP.

Thanks in advance!

[Cat Damiano]

FMV is the Fair Market Value and the net number is the amount that the lender has figured on walking away from the transaction with, the 5k should already be figured into the transactions net number. Without being a part of this transaction and reviewing all documents it would be very difficult for us to render any credible advice. Also if your agent is unfamiliar with the short sale process, you may want to speak to his/her managing broker as this is an important transaction for you.