Foreclosure in Wayne County>Question Details

Jennifer, Home Buyer in Wayne County, OH

I put a cash offer in on a short sale 1 week ago asking price was 69,900. We offered 55,000 whats the wait? is it a good offer? Bank is Wells Fargo

Asked by Jennifer, Wayne County, OH Mon Feb 28, 2011

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Agree with Phil. My actual instances with this bank have not been pleasant. Be patient is the motto!
1 vote Thank Flag Link Mon Feb 28, 2011
Jennifer;
If you put an offer in on a short sale, assume you will have to wait 2-6 months for an answer (regardless of price). Welcome to the wonderful world of short sales.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Mon Feb 28, 2011
Jennifer,
Shortsales a bit more complicated than a traditional transaction, it can take a few weeks to a few months, depends on investor requirements, PMI (Primary Mortage Insurance) this is when a buyer puts less than 20% down they also need to approve the Shortsale. The seller and the buyer have to accept the offer, then the Realtor gets the updated information needed from seller that the lender requires, or if they have a 2nd mortgage, submits them to one or to both lenders. The file is assigned to a negotiator, they will order an appraisal on the home, then they have to have to submit the appraisal to the investor ( fannie mae, FHA, or any of the over 500+ investors) for review, The investor may counter or accept the offer. If accepted, then the shortsale approval is issued. It is imperative that you hire an "Experienced" Realtor ( has completed a minumum of 50 shortsales) Is a CDPE (Certified Distressed Property Expert). I recommend asking for references 2 current clients, and 2 previous clients. I hope I have helped you. Good luck!
Sincerely,
Cindy Keil CDPE
0 votes Thank Flag Link Mon Mar 28, 2011
Jennifer. Did the sellers accept the offer and sign it? That's the first step in a true short sale. You negotiate directly with the seller - then once accepted it is sent on to the sellers loan holder to accept. The sellers have to have all their ducks and paperwork in a row....It's alot of documents they need to submit with the contract.

If the sellers accepted you are under contract BUT - it will be subject to their banks approval. We have done a lot of these this year. It's hard on you the buyer to wait so long - and it is even harder on the seller, not knowing and scrambling for paperwork needed.

The longest one I had was nearly 4 months. The shortest one - we just closed a couple weeks ago and it was 72 days.

Your agent here in Wayne County should be able to help...have them get weekly updates from the other agent and/or title company and lender. be prepared to "sit and wait" - it's just not an easy process for any of us but there are some great houses at great prices if you can just hang in there.

Let me know if I can help.
0 votes Thank Flag Link Tue Mar 8, 2011
Everyone is speaking correctly. Two month minimum to get any answer at all, good or bad. If it's less than that timeframe simply count your blessings. Then another couple of months to get to closing, depending on if there are any liens on the property. Six months to close is a basic timeframe for sure.
0 votes Thank Flag Link Mon Feb 28, 2011
if you are 15-20% less than comp , then your offer is a bit low in my opinion. $69.9K doesn't mean any thing.

Four months ago I bid $65k for a shortsale listed at $69k. I didn't hear from them until last week that it was coming back to MLS as REO and listing at $59K with (already) multiple offers. Gezz ... go figure ... so I dropped my bid down to 60K (Comp around 68-70) ... don't think I am going to get it, but if I do, it would be the strangest deal I have ever encountered. This is AZ market, not sure the same for OH.
0 votes Thank Flag Link Mon Feb 28, 2011
Jennifer the only way to know if it is a good offer is to check with the Realtor® representing you. If the property is already underpriced you may get a counter back over list price. As for the wait, you just started, be prepared for another 2-3 months before you hear anything back in my opinion.
0 votes Thank Flag Link Mon Feb 28, 2011
Depending what stage the short sale is in the negioatiater assigned to the file at Well's Fargo should answer within 72 hours I would ask my realtor to check into it. It is a long progress depending on which bank even if its CASH Offer. Could take up to 6 months to complete. Good luck
0 votes Thank Flag Link Mon Feb 28, 2011
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