Make sure to record the name and contact information of the person you’ve been dealing with. Address the package to that person and send it via overnight delivery service.
It’s common for the lender to come back with a counteroffer, reducing real estate commissions and other expenses. Remember, the ball is in the lender’s court to approve or disapprove of the sale, so expect further negotiations. The lender may negotiate the agent’s commission directly with him. You should anticipate that. Real estate agents experienced in short sales understand this as part of the game.
Be prepared for the lender to refuse to allow payment for termite inspections, appraisals, repair estimates, etc. The lender expects the buyer to take the property “as-is, not repaired.
When an FHA loan is involved, the lender cannot accept less than 82 percent of the BPO, or less than 63 percent of the fair market value or BPO divided by the loan balance. A BPO will probably be in the range of 80 to 90 percent of the estimated repaired value. If a property is worth $100,000 after repairs, the BPO should be around $80,000 to $90,000. Multiply that amount by 82 percent and you’ll have a good estimate at a starting offer. For FHA-approved short sales, you’ll also need to fill out special HUD forms