Chad.....

There is nothing you can do to pressure either agent. These banks march to their own drummer and there are time when they finally approve the sale and then the market has dropped even further. Then it's back to renegotiating.

A good point Barbara made. A seller must "qualify" for a short sale before the bank will even consider it. Many listing agents do not do the research first to get the paperwork together, and be sure the seller meets the rules to qualify. One being that they can prove they do not have the money to pay the loan, AND THEY DO NOT ANTICIPATE ANY WAY IN THE FUTURE TO PAY THE LOAN. Just losing a job does not qualify. So a lot of time waiting can also be due to the bank researching the qualifying rules.
I have been in Real Estate for 30 years, and every time the market conditions change, a new way to sell pops up. Unfortunately, many uneducated consumers buy into the hype fed to them by marketers. Watch your money and learn before investing. Make sure your Realtor is up to date and informed with CORRECT information. Setting proper expectations up front can make for a less stress transaction.
I hope you get the property you want!
Debi Quade

Did you know that properties listed as a short sale are over 30% of the homes for sale?

Buyers are attracted to short sales because they THINK they’re getting a good deal. A potential buyer finds home online or by making sign calls listed for a price that is TOO LOW for a home in that neighborhood. They are really excited and want to jump all over it. They’re getting a DEAL! But before jumping, ask yourself, if this is too good to be true, maybe it’s not for real after all. You may be about to make an offer a pre-foreclosure, short sale home. At best short sales are unpredictable. They are never short.

You’ll spare yourself a lot of grief by educating yourself about short sales.

Of the all the properties listed as a short sale, how many of these sellers qualify to short sell their property? Is their bank accepting short sales? How many lenders are involved? Does the listing agent know how to transact a short sale? Few short sale transactions have been completed since January 1st. Not a very good tract record.

What’s wrong with Short Sales?
A short sale SHOULD mean the seller's lender will accept less than the mortgage payoff and release the existing mortgage. Properties listed as a short sale does not mean the lender will accept your offer, even if you offer the listing price and if the seller signs the sales agreement. In other words it’s NOT necessarily FOR SALE.

The other responses present a pretty accurate picture, including Nancy's comment that if you want a house and are willing to pay what's owed, then you'll have no problem getting a quick response. In fact, if your offer is enough to pay off the mortgage, then no bank approval is necessary.

Most people who pursue short sales or REOs appear to be looking for "bargains." Now, sometimes they are bargains, and sometimes they're not. A house that sold two years ago for $600,000 and is being offered today for $450,000 is no bargain if other houses in the neighborhood are selling for $395,000. That's where due dilligence comes in.

So, if you're looking for a bargain, be prepared to work for it. You're not going to get a property $100,000 under current market value handed to you on a silver platter. You're going to have to negotiate. You're going to have to search. You're going to have to be patient. You're going to have to stay emotionally unattached to the outcome.

What to do at this point? First, if you can acquire the house for what you've offered, or close to it, is it a bargain in today's market? I don't care what the "markdown" from the last sales price is. I don't care how much the bank has to lose. And neither should you. Just: Is it a bargain in today's market? If the answer is "no," walk away now.

If the answer is yes, then ask yourself whether the savings are large enough to justify the stress, the hassle, and the uncertainty. If the answer is "no," walk away now. If the answer is "yes," then hang in there and hope for the best.

Maybe not what you wanted to hear, but that's reality in today's market.

Hope that helps.

If your offer had been enough to pay off what the sellers owed you wouldn't be waiting. Your greed in trying to take advantage of someone elses pain is why your waiting. Banks readily except offers that cover what is still owed them very quickly. Maybe you should up your offer if you don't want to wait.

Dear Chad,

I recently asked the banks for an explaination as to why the process took so long....the answer I was given was that in many cases the lender you are making the offer to has if fact sold the loan on. So they are working with another lender through this process. Plus, quite thorough due diligence is done on the lenders behalf. While it can be frustrating it can also be rewarding.

Good Luck!

Vanessa Schwartzel
Century 21 All- Islands
Kauai

Dear Chad,
It can be quite frustrating being involved in a "short sale" for you and the agent. We have seen it take seven months to get a bank to answer us on a short sale. Unfortunately this is tying up your deposit as well as your housing plans. The only advice I can give you as well as my clients is to be prepared to wait to see if you get the property at the price you want it.
I would recommend you speak with your agent and ask if a contact from you every 2 weeks for an update, would work for both of you. This may remind them to check for you on the transaction. Any sooner then that is not helping. The bank does not want to be called too often and may shut you out if you persist.
Good luck. Debi Quade

Deborah said it perfectly. If you're involved in buying through a short sale, you have to have a lot of patience.

The sellers agent is just as frustrated as you are. This is not within the control of the sellers agent. If agents acted like banks, and sat on offers, made promises of responses, or wrote their own rule, I can’t imagine how loud the outcry would be. Unfortunately, it’s the bank……and the bank can get away with this behavior. It’s common. I wish I could give you a better remedy, but there isn’t one. The bank won’t talk with you, or your buyer agent. The bank will talk w/ the seller, and the sellers agent with a power of attorney. Regardless of what attempt you make to add pressure to the sellers agent, it won’t change the bank’s timeline. Polite follow up is understandable. If you start heavy handed pressure tactics, it will likely cause tension without any positive results.

I am involved with a few short sales at the moment. I thoroughly cover with buyers what is to be expected on a short sale from the moment they look at a property identified as such. I hope that your agent gave you fair warning.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey