Ever came across this scenario? You’ve made an offer on a house listed for a somewhat reasonable price, and make an offer on the short sale for less. Then the home actually increases in price instead of decreases as time goes on. Strange enough, more offers are made on the house and surprisingly, the bank ends up rejecting all offers on the house and now makes an astonishing move by placing the house for sale at an even HIGHER amount. What’s going on?

Well, if this yucky scenario happens, it’s because the lender has usually thrown out the option having the home sold as a short sale all together. If an appraisal comes in higher than the offers, they won’t sell the home at the lower price points. Although…time is on your side. With the amount of number of foreclosures and short sales starting to flood the market, something will have to give. Just wait out the house till it fits in your price range until the owner can no longer afford making the monthly payments.

From the banks point of view, they are waiting for the backlog of homes to clear off the market and hoping that prices will stabilize or go up. Of course, the price of real estate won’t go up this year. The banks are being stupid or trying to hold off what they can. The banks are attempting to spread their losses out over time than in one fiscal quarter to try to keep their stocks up and lessen the shock to their investors. Just keep looking and bidding.