Submitted 09/21/12 04:50 AM
Q. I am in the process of buying a short sale. I have been waiting since July 13,2012 that is when the seller accepted my offer. Since then I have heard very little, I know that we have been assigned a negotiator and I just signed and got a document notarized saying that I do not know the seller. So my question is where am I at on this how much do I have done and how much longer is this process going to take?
Submitted 09/21/12 09:48 AM
Okay, this is a loaded question. Now that the negotiator is assigned and I am assuming that the short sale has been accepted by the bank. I would think that the bank will do their own appraisal etc. to match and see if it is in line with your offer. So, this process if it hasn't been done can take a little bit of time for the bank to get the whole picture on this property. Remember, these banks are usually in another state and they have no idea about specifics on this property and they will spend a little time to get it. As far as how long will this take well that depends on who the bank is. Some banks are fast and some are super slow. I just closed a loan for my buyer who the bank was in India. This took about 6 months. I had another one that took almost a year and that one was with Bank of America. (since then they have gotten a little faster) not much! lol I had another that closed in less than 3 months. Either way when you buy a short sale be prepared for the long haul. It is a lot of work for your agent and the selling agent. They earn every penny of their commission! I don't know what kind of loan you are getting but be prepared that if the appraiser on your loan calls out repairs that you may have to get them done yourself prior to close. the current owners that are short selling usually have no money or they are unwilling to put any money into the house and forget asking the bank to do the repairs they also usually NEVER will pay to have them done. So, discuss this with your current loan officer and buyers agent to come up with a strategy to handle any of these issues.
Good luck and hang in there!
Submitted 09/27/12 09:27 PM
So what does the agent representing you say???
Submitted 09/28/12 02:04 AM
He's giving me all the information that the seller's agents are telling him. That it is a private lender, that the seller is calling there real estate agent just as much as I am (def. good to hear because atleast I know she is motivated). And he said that it really shouldn't take this long to receive a acceptance letter from the bank.
Submitted 10/05/12 09:10 PM
Any word? Feel free to reach out to me if you would like insight on turn around times and the timelines associated with closing a loan.
Submitted 10/08/12 04:14 PM
Short sale transactions require a lot of patience and perseverance but most of the time, they are worth the wait. I have sold many short sales and my clients have been so satisfied at the end. The bank makes the calls even though the seller is signing off on the contract. As long as the listing agent is experienced and the buyer's agent is in touch with all parties, you should be fine. Please be prepared, there can be last minute hiccups in short sales, with third/private party liens, IRS liens, unexpected mishaps.
Submitted 10/10/12 11:55 PM
I agree with Lina. Short sale transactions do have a lot of things that come into play during the whole process. Yes it's good to know that the seller is showing her eagerness to get over with the deal. It will take its course and will take place sooner than later.
Submitted 10/17/12 08:18 AM
I don't understand why you would need to be on a real estate blogging website for the answer to a question your REALTOR should have for you. And if you are just trying to get the second opinion, then maybe you picked the wrong agent. :) TheTruth!
Submitted 10/18/12 01:22 PM
Short sales are the longest sales in the world (with exception of one that listed to close we had in 31 days- yes 31 days!). There are so many moving parts to a short sale, so many factors, nothing is cut and dry. On short sales we try our hardest to have a full package to the bank with the exception of the offer on the day we list the property. This gives us time to talk about all the details and dot our i's and cross our t's - during this time frame, it is basically due dilligence on the listing agent's part a number of tidbits of information come to light and I would suggest a title search to determine how many lenders we are dealing with and also if there are any other liens on the property. From there each sale is independent as far as a timetable. Have patience, it is a gamble. The comment above dissed the Realtor, it could be that certain buyers are not really candidates for the short sale process as well. Patience as mentioned numerous times throughout this string of comments has it's rewards.
Submitted 10/18/12 04:39 PM
Its the wait that is killing me its just I don't get why a short sale doesn't have time frames for each thing it can be a month or it can be up to a year it all just depends on how fast the bank is moving. the latest thing I have heard is my realtor said he received a email from the bank saying that they are reviewing the file and we should here from them shortly my realtor said I would not take shortly as being literal which makes sense because its been 3 weeks since then.
Submitted 10/18/12 06:52 PM
Your pain is the same pain that us Realtors feel when dealing with short sales. It is a long process, and we sometimes don't understand why it takes so long for something simple. But what we all forget is that while you're dealing with only one purchase, and your agent is maybe dealing with 4 or 5, or maybe more, pending sales, the short sale negotiatior is dealing with maybe a hundred or so short sale files. While this sale is important to you, it's just another task that the faceless negotiator needs to get through when they get to it. It's pretty much first in, first out where they are concerned.
Most of the bigger banks have timeframes in place, but they're still working on bringing their staff up to the levels to meet those timeframes. Short Sale Negotiator should not be an entry level position, but the banks are at the point of bringing in any breathing body they can get to train and do the job...and it shows.
If the bank is sending you correspondence, that's a good sign that they are now looking at your offer. It may take a few weeks for them to get to it, but they will get to it. Just keep after your agent for weekly updates, and make sure your agent is keeping after the seller's agent. And if you are taking out a mortgage to buy the house, keep your lender in the loop, because once the bank approves your contract, they'll usually only give you 30-45 days to close.