Is Your Short Sale approved?

By
Real Estate Agent with The Freedom Group - Keller Williams Realty Infinity 471.009781

 

Is Your Short Sale Approved?

Beware the REALTOR who claims to have an approved short sale.  It may be that the bank at one time agreed, in principle, to sell the home at a given price but I doubt many REALTORS are walking around with written approvals in their hands. 

I made an offer on behalf of a buyer for a home in Minooka, IL.  The listing agent advertised the home as an approved short sale.  We proceeded to pay for a home inspection and appraisal, assuming that the closing would occur as agreed in the contract.  The listing agent never questioned our June 24 closing date as being too soon (5 weeks after acceptance) and never mentioned that it might take a long time to close.  The attorney for the buyer sent a request for the written authorization to the seller's attorney, a request that was ignored.  The mortgage consultant provided the clear to close prior to the scheduled closing date. 

I called the seller's attorney directly to find out when we could get the closing scheduled and she told me that the seller did not have bank approval.  I had to tell my clients, who were already packing, that this may take awhile.  After waiting another month, with little to no updates from the listing agent, I called the seller's lender, Wells Fargo, and spoke to Yolanda in the short sale department.  She said that a preapproved short sale should take 10-12 days for a response.  Now, I've been waiting over 70 days for a response from a bank that claims that it is taking 25 days on average for all short sales to be approved.  I have an unhappy buyer, a listing agent that seems more and more inept each and every day that goes by and I'm losing patience myself and wondering when I tell my clients to start looking for another home to buy. 

Also, I'm wondering how many violations of the code of ethics to cite when this is all over. 

 

Posted to http://placesinplainfield.com/Today_s_Blog.html 7/27/10

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Steve serves the real estate needs of buyers and sellers in Shorewood, Plainfield, Joliet, Crest Hill, Romeoville, Bolingbrook, Oswego, Minooka, New Lenox, Aurora, Naperville and NW Will County.  Specializing in short sales, investment properties and first time home buyers, Steve attacks problems with a tenacious outside the box approach and keeps working where many others would have given up.   

To learn more visit steveroake.kw.com or download my mobile app. Specializing in Shorewood IL Real Estate, Plainfield IL Real Estate, Joliet IL Real Estate, Minooka IL Real Estate, Channahon IL Real Estate, New Lenox IL Real Estate, Oswego IL Real Estate, Bolingbrook, IL Real Estate, Romeoville IL Real Estate, Naperville IL Real Estate. Buyers can save between $1,000 and $5,000 by working with us! 

 

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Rainmaker
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Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Steve,

Wells Fargo is one of the few lenders that do approve a listing price.. an approved listing price is not an approved short sale.

An approved short sale is between the seller and a particular buyer. Wells Fargo approvals are buyer specific, so once they issue an approval letter for a buyer and that buyer does not close for some reason, another buyer cannot close on that approval. Wells has to issue another approval and Wells is likely to close the file and start over.

I have closed several short sales with Wells and they are a pleasure to work with. I am unsure of the details of your transaction but 70 days for Wells Fargo seems a little on the high side.

Lack of communication from the listing agent, in my opinion, in unacceptable. The buyer agents who bring their customers to my listing are treated extremely well and are flooded with information.

Jul 27, 2010 11:07 AM #1
Rainmaker
74,764
Steve Roake
The Freedom Group - Keller Williams Realty Infinity - Naperville, IL
Get Moving With Steve

Thanks for pointing out the distinction.  I think the listing agent I'm dealing with could use a lesson on it.

Jul 27, 2010 01:20 PM #2
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Rainmaker
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Steve Roake

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