Buying or Selling a Home/full price offer

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Expert: - 10/14/2007


Question
We have made a full price offer on a home listed with a real estate company. The home is in short sell. The bank that holds the mortgage on the home has just come back on our offer stating they will not take the full price that they listed it for,unless the owner that has the mortgage with them pays 30,000 more. do we have any rights, they still have the home listed for what we offered them.

Answer
Hey, Tammy.

It sounds like the real estate company didn't get approval from the mortgage company for the short sale. That quite often happens when both the home owner and the real estate agent are not familiar with the short-sale process. One cannot simply sell the house for less than what is owned on it, call it a short sale, expect the mortgage company to say okay, and go on one's merry way. In all instances that I'm aware of, the mortgage company should, perhaps has to, agree to the short sale beforehand. Otherwise, as you have found out, the mortgage company can say no unless the owner comes up with the difference between the price and the mortgage amount owed.

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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