Going through the process to stop foreclosure could introduce you to the term known as a short sale counter offer. This is a situation where a bank or mortgage lender has denied the request to short sell your home. The entire theory of a short sale is one big negotiation. Your formal request to stop foreclosure with a short sale is put in writing. A mortgage lender will have the request reviewed and could wind up refusing the offer or submitting one to counter it. This is a very real and more common scenario than you might think. Just because a counter offer is requested does not mean banks are any closer to stopping foreclosure. It is helpful to understand why a counter offer happens if you are presented with one.
Short Sale Counter Offer
There are generally two reasons why a counter offer is made after a request for a short sale. The first reason is that a bank or lender might have found that the offer is too low. You have to remember that what you are asking your lender to do is to forgive the mortgage for a lesser amount. If you have a $100,000 house and owe $97,000, your lender might not settle for something less than $60,000. The remaining $40,000 is what will be totally lost by your lender. This is a big amount and it could have credit consequences for you. The assessor that reviews short sale requests for lenders could submit a counter offer before approval is granted.
You do have the ability to dispute the appraised value of your home. Lenders go by the actual value from previous appraisals. To expedite a short sale approval, you could ask that the home be reappraised to make sure there is an accurate figure to work with. Not every bank or lending institution is willing to make a counter offer. It has become quite common for these lenders to ask for upfront money. Some offers are approved only with a cash stipend that is listed in the counter offer documentation. A cash payment is usually not an option for homeowners that are underwater and facing imminent foreclosure. The idea of spending more cash for a home you cannot pay for is a troubling one.
“Short Sale Counter Offer”
Avoid Foreclosure experts know the pains of going through a short sale. We are short sale specialists and know all of the dirty tricks that lenders and banks try to pull. You are made to feel helpless and hopeless for a reason. Your lender wants you out of its house as fast as possible. That’s why we’re here to help you. You don’t have to feel embarrassed about seeking help online. Our assistance is freely given to homeowners in every state that are getting the sort sale runaround. You can call 1-800-589-4106 or fill out the simple form on this website. The sooner you start to do something to stop foreclosure you will be happier. You should not have to suffer because your lender knows the inner-workings of foreclosure and can make an unexpected short sale counter offer.