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