Foreclosure in Appleton>Question Details

Jane, Home Buyer in Wisconsin

How do I get the negotiator to respond to my offer on a short sale home?

Asked by Jane, Wisconsin Fri Sep 12, 2008

We have a negotiator assigned to our case, all the necessary paper work has been completed and we have an accepted offer from the sellers, The bank has told us that the negotiator should contact us soon. It has been three weeks and no word. We were told he had 72 hours to contact us by a bank manager. Now that 72 hours has passed, we were told that we were misinformed and it will take 30 business days. How can we get the negotiator to look at our offer, and why is the bank willing to loose more money on this house by being disorganised, when we are willing to buy it today? Shouldn't we as a buyer have any time frame rights?

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7
Jane,

Welcome to the fickled world of short sales. this is exactly the reason many agents are steering clear of these nightmarea and recommending customers to consider traditional sales or foreclosures.

There are many agents who want more for their customers and try to protect them from this type of experience that will no doubt leave a bitter taste regarding this process.

Our recommendation....move on, find another opportunity, and end this frustration.

Good luck
1 vote Thank Flag Link Fri Sep 12, 2008
Unfortunately there is a lot that goes into a short sale and a lot of work that can't be done until an offer is submitted. The real negotiating starts when an offer is submitted even if the sellers have sent in all the correct paperwork. If there are liens on the property the process may take longer as well. In which the listing agent should know as well.
An agent shouldn't tell you that it should take 72 hours as it's just not realistic with how large the banks' case loads are per negotiator. The agent should've prepped you and informed you about short sales prior to making an offer. It also states in the contract you signed with your offer that the time frame is based on lenders discretion in so many words.
We as agents would love it if the time frames were more cut and dry as would the sellers (home owners) and you as the buyer. It's a frustrating process but in the end it's most likely that you are getting a great deal and ultimately helping the sellers (home owners) as well by preventing them from a very public foreclosure. If you have the patience and love the home it's well worth it in the end. :)
If you have further questions or concerns don't hesitate to reach out further!

Wish you the best and patience!! :)
Kelly Podmolik
Apple Valley Realtors
715-492-0019 (direct/text)
kelly@applevalleyrealtors.com
0 votes Thank Flag Link Tue Aug 9, 2011
It seems like everyone else has said what I was going to say but from a realtors point of view. I am speaking from a buyers point of view and they are right. I have accepted offers on two properties by the same owner that died 9 months later beucase I simply couldnt get Countrywide to move (wonder why?).

The bank often is taking a loss in these situations so unless you can scare them into thinking they might loose a lot more money in the near future by holding the property any longer (approaching winter and vacant homes dont mix well), they dont have much incentive to move with the same level of enthusiasm an investor about to make a good profit would have.

I have also dealt with realtors that are representing such homes and they maybe looking at two things. Maybe 20% of the offers they submit on such properties actually reach a closing table. This results in realtors investing A LOT of time into deals that do not go through. Then the percentage splits are usually not the greatest as compared to conventional sales. Finally many banks require that listing agents have to carry certain cost associtaed with the property. This can range from utilities in thier name to repairing drywall damage, yard maintenence and changing locks. Even the most dedicated agent/broker person will get worn by these odds.

Having said that you do need to set time constraints.....on yourself. The bank is losing money and I doubt they will ever make rules to force a bank to move faster for the convienence of buyers. Make a decision how long you are willing to wait for a response and then stick to it. I have currently submitted offers on two four units in Wisconsin each worth 100k more than my offers. That is a great.......if they close. I am giving them two months then moving on.
0 votes Thank Flag Link Wed Dec 3, 2008
Hi Jane..... Some of my clients have also had this same problem with short sale transactions. Short sales are definitly not quick sales and can take months to complete. My clients ultimately had to forget about the short sale property and look for another traditional sale. In my humble opinion, these negotiators (no matter what bank you are dealing with) are salaried "suits." They get paid whether the sale takes one month or six months to complete. Often sellers facing foreclosure, who find a willing buyer, are ultimately forced into foreclosure due to the inertia of these negotiators. I agree with Bill Eckler... you might have to move on.

Yvonne Baker, Real Estate Consultant
http://www.YvonneBaker.com
ycbaker@kw.com
Web Reference: http://www.YvonneBaker.com
0 votes Thank Flag Link Fri Sep 12, 2008
Banks are overwhelmed till recently usually responsded approx. 72 hours. I always notify my buyers foreclosures, short sales is drama. I would keep looking an continue place offers on other properties. Till you have an executed contract. Sellers not banks at times easier to deal with faster close
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Sep 12, 2008
Hi Jane:

Are you working with a buyer's broker and/or an attorney who can review the documents / offer and give you expertise, while also helping with the communications directly with the bank? The accepted offer is a key piece - there probably is more to this than meets the eye. I'd check with an attorney at this juncture; you might need a designated hitter.
0 votes Thank Flag Link Fri Sep 12, 2008
Who is the lender? My guess is it's Wells Fargo by the way you described their process. I've delt with numerous lenders and my advice is to call them on a daily basis. Even if they've said in the past, the negotiator will call you, the agent should be calling, calling, and calling again. Sometimes it's over looked by other deals on the table, but if you're persistant, they will get a move on it.
Web Reference: http://www.JeremyCudd.com
0 votes Thank Flag Link Fri Sep 12, 2008
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