If you are under a time crunch, you aren't a good candidate for a short sale. It is sad, but the bank could care less about your time crunch. There are other good opportunities in Crossroads, Aubrey, The Colony, Little Elm, Oak Point, and other parts of the North Dallas/Denton County suburbs. If you have an agent, there is a file number assigned to this short sale and they can call to check on the status. They may get no response, as in Texas, no response is required by a seller. If you get no response, you should move on to another property and give up the short sales. I have one buyer who closed at 5 weeks on their short sale, and I have a buyer I started working with two weeks prior to that buyer who is at 8 weeks and holding for a response. Fortunately, that buyer has no time crunch, since she still lives at home with her parents. It's going to be hit or miss on which bank you are dealing with and how eager they are to resolve the situation.

Have a blessed day!
Ronda



Ronda Allen
Realtor, Realtor Life Coach, and Certified Purchasing Manager
RE/MAX Dallas Suburbs

Get your realtor to call the mortgage company! On short sales, they are quite slow, so be patient!

Supplimental, I hope it's not Wells Fargo...I withdrew one for a client in Providence (address witheld) last month and we went elsewhere to a resale .

I blogged about this a few days ago Lainie. As a Realtor I advise all my clients that short sales are not for the typical owner occupant. By the time you actually hear something it's entirely possible that there are multiple offers and yours may not be the best one. The bank can take their bailout money and lets these homes rot for all they care and it's not fair to buyers. If a person understands what they are getting into, so be it, must most buyers don't. As Jim said, high risk, low reward is correct. Investors can sit back and write offers all day long and if they get a hit, fine, but again, not for typical buyers.

I am hearing of time frames of 30-60 days, and even at that, the bank may not bite on an offer. The problem lies in that the listing agent will place a property for sale before the bank even begins to process anything and the bank does not care about who made an offer first, it's "highest and best".

You do have the option to pull your offer and go find a resale than an individual has listed through an agent and make it easy on yourself. Good Luck.

he article linked below tells you a little about the patience and risk tolerance required from a buyer in a short sale situation. My opinion of short sales for buyers? High Risk, Low Reward.

http://www.brokeragentnews.com/news/residential/2008_2/2_4_2…

To sum up the article. 1. Buyer waits a long time for the bank to anything. 2. Buyer has to sign banks counteroffer that is full of anti-consumer clauses. 3. Buyer has to pay nearly full market value. (discount, if any is much tinier than you think it will be) 4. Bank can cancel the sale at any time up until close of escrow, with no consequence to the bank and no compensation to the buyer


In my not so humble opinion ( imnsho,) ) The reasons why the failure is above 80% are:

1. Many sellers don't qualify, they think that being upside down and hating it is enough.
You must also be undergoing hardship not of your own making. such as illness, unemployment or natural disaster. Stovall gives a few other reasons.

2. Prospective buyers think that these are bargains, so very few buyers offer close to full market value. The banks will not approve sales at huge discounts, tiny discounts: yes.

3. The wait, 4. the paperwork, the wait 5. the anti-buyer addenda, the long wait 6. the uncertainty of the sale, still waiting 7. the perception, if not a reality, of bad faith dealing by the bank loss mitigation managers.

.I linked below to an article in Broker Agent News by Steve Stovall. He gives a pretty good description of the short sale process, seller, property, paperwork, and buyer requirements


Web Reference:

I put a bid on a house the beginning of November. It was a short sale. I was not the only person to have put a bid on this house so you may want to verify if there are other bids. By the time a negotiator was assigned to this, there were 5 bids in. By the time the negotiator had reviewed the file and got back to the bidders, there were 8 bids. I lucked out because I wasn't in a rush or time crunch and most of the others were. In the end, my patience paid off on January 30th when I closed on the home. I didn't hear much of anything for 6 weeks and even after that, it was information that trickled in bit by bit. So that was my experience and it worked out for me, but I had time and patience on my side. Good luck! I have friends that live in Providence and love it there.

Bruce summed it up with 3 sentences.
A short sale does not stop the foreclosure process. Sometimes the bank will choose to foreclose as a better option to a short sale. The other answers provided contain good information as well and
In order for the bank to approve a Short Sale there are several other factors in play involving the seller's financial situation, hardship and time on the market. If the seller qualifies for a short sale a case worker at the bank will be assigned and a BPO(Brokers Price Opinion) will be ordered and so on. Depending on the evaluation of the property by a 3rd party broker, the bank may or may not have a case to present to the Mortgage Insurance or investors absorbing the loss.

Because of the huge volume of defaulting loans, banks are running behind in processing the overwhelming amount of paperwork required to be considered for a short sale.
We now have a "Short Sale" amendment to our contracts that should be used on all Short Sale offers to give the buyer an option to terminate the offer/contract with seller after a pre-determined period of time. Hope that helps

Short sales can take forever, if they ever even go through. They are often a very frustrating experience. You jump through all the hoops, and they still won't budge. There are just so many factors outside your control. If you're looking in Providence there should be several homes for sale that have already gone through forclosure. That's not always a speedy process either, but perhaps faster than a short sale situation. Can we help you with one of those instead?

With short sales, you are at the mercy of the bank, there is no way to know how long before they reply. Some take 6 weeks... some 8, some longer. Patience is one thing you must have. After all that waiting, it doesn't mean they are going to accept your offer, they may just counter or decide to pursue another one.

I have an offer out since end of October on a short sale and just last week, we found out that the bank has assigned someone to the case finally!!!!!!!

I would recommend that you continue looking and don't limit yourself to foreclosures or short sales, there are a lot of motivated sellers out there and you can just as good of a deal.

There are 49 homes on the market in Providence Village right now.

I've talked to several agents in my office recently regarding short sales and I'm being told that some are waiting up to six weeks for a response.