Posted by River City on May 08, 2008 at 10:49:52:
In Reply to: Short sale owner accepted, bank wants more$ posted by Sonia A. on May 07, 2008 at 11:00:57:
Steve is correct. The bank has to agree on the amount of the sales price.
For some reason, people seem to have a problem understanding that the bank must approve the short sale.
Look at it like this: Let's say you loaned someone $300,000 to purchase a house, and after some problems, they could not pay you the $300,000. BUT, they have found a substitute purchaser of the home for $250,000. Do you think you should HAVE to accept the $250,000 (losing $50,000) instead of the $300,000? The bank is the one that loaned the money and they have their depositors to protect. They have to do their risk analysis and determine just how low they will go. They are not required to do short sales at all. Luckily for you, they will, at a cost to everyone else.