Balance on 1st approx 200,000. Home is in foreclosure with a sale date scheduled in less than 30 days. Parents have offered to buy 1st but only have 160,000 available to offer bank - funds can be verified and paid to bank in 3-5 days after bank's acceptance of offer. Will my bank go for such an offer? If not, the house will be foreclosed on. How common is this type of offer to a lender in this current real estate market - January, 2010?
This is generally called a short sale. In your state many banks are accepting these offers even if they are relatively low becausse of the crisis in housing. There is no legal answer to this question. It is up to the Bank to accept or reject the offer.
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