The Background: Nine months ago my client submitted a totally fair and reasonable offer on a condo which was substantiated with numerous relevant comps. The Buyer submitted his pre-approval for a mortgage, Verification of Funds, and evidence of her high FICO score. The Lender began their process of reviewing the offer and requested the Seller submit his financials so they could determine if they would allow the Short Sale to proceed.
The Process: For three months the "Negotiator" reviewed the file and then requested updated financials from the Seller. For another three months the Lender asked for further information, sometimes requesting the same documentation several times. This went on for another three months.
The Result: Finally (after 9 months), the Lender agreed to accept the Short Sale offer, with the following stipulation - The sale needed to close in 14 days, otherwise the Buyer would be charged a penalty of $100 for each day that the transaction continued.
As we all know, it takes at least 30-days to finalize and fund a mortgage in the current market environment.
With that in mind, how can the Bank make such a ridiculous and unrealistic demand on the Buyer?
What sense of reality, if any, do the people working at the banks have?
Until Banks have a serious "wake-up call", the fiasco with Short Sales will continue.