Blake, with a non approved short sale, the listing agent list the home for the distressed owner. They slap an asking price on it. Then if it's a good deal every body gets in line with an offer. In Bakersfield the market is different just going across town. Then once the home owner accepts one of the offers it goes to the Bank to see if they will settle the debt for less. They are obviously trying to get the most money possible. So that is where the counter offer comes.
But the house can only sell for appraised value. So if the back wants more then the appraisal says it's worth. Then the banks price has to get lowered. The house we just bought was listed at 135k, in the rush of offers we offered 145. My wife loved the house. Then 3 months later the bank came back and said they want 165. So we countered again. My realtor told me she some times offers more and then put hidden concessions. So we did 155 with the 3.5% back. Which is means we really offered 150ish but it sounds like 155. The bank agreed and it is now in escrow.
Some times if there are more then 2 loans, the banks can never agree so the house just forecloses. The real estate market here is really hit bottom. I know a guy who short sold a house he owed 240 on for 80K. Crazy what the market is.
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