Home Buying in Coral Way>Question Details

Goodlord, Home Buyer in Miami, FL

After accepting an offer for a short sale how long can an owner postpone to provide info requested by title co. to complete pack to send to lender?

Asked by Goodlord, Miami, FL Mon Jan 17, 2011

I put a cash offer on a property /short sale and the offer was accepted by the owner who signed it and send to the title company that is preparing the package to send to the lender.
The title company requested more information from the owner to complete the package.
Four months had passed and the owner never provided the info.
I'm still interested on the property and try to find a way to expedite this process.
My realtor talked to the owner's realtor and she was so ashamed and said that we are in the same boat.
How long can a owner postpone to provide the information requested?
Any suggestion ?

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Answers

11
Gerard J. Carney’s answer
If it is a short sale and the owner accepted the offer, there is still no acceptance of the offer, the third party, the bank in question, which allowed the short sale is the the only party that cements this deal, once you have a go from thebank then you have a contract. Your title company should know the routine by now on short sales, yu have nothing until the bank accepts the offer and has sent back to you their very long list of addendums which will come with the acceptance. There should be verbage in the contract that you have signed and think is valid. It can have your signature and the property seller's signature, but as a short sale tis is not a valid contract without the blessing and condictions dictated by the third party, thebank!
1 vote Thank Flag Link Mon Jan 24, 2011
The seller does not have to perform, there is not set time table unless it was written into the contract, and then it only portects the buyer in that if the seller fails to perform, the buyer can move on to another property more quickly
1 vote Thank Flag Link Mon Jan 17, 2011
Sad to say, many short sale sellers are gaming the system to live there for free while they are falsely compliant with the bank procedures and hurdles. The attempt at loan mod also is a possibility that stalls foreclosure, and did I mention they get to live there free??? It is too hard to plan a move for your family and coordinate a move out/move in with a short sale is impossible. Also the short amount/deficiency could be at issue here too and the seller attorney is working the bank over to get a zero deficiency judgment against the seller. Bank owned REO's are the way to buy, skip the short sale homes, 80% end up foreclosed anyway. Focus on already foreclosed homes in your price range and targeted community.
0 votes Thank Flag Link Tue Feb 15, 2011
Rather clearly the owner does NOT want to sell the property. Time to move on. Actually it was time to move on as soon as the owner started to dilly dally.
0 votes Thank Flag Link Mon Jan 24, 2011
Sounds like the owner is not longer in the mood to sell. Owner has the right to keep it and maybe decided to make a modification of the mortgage. Look for another property if you have no response in the next 15 days.
0 votes Thank Flag Link Mon Jan 17, 2011
Dear Home Buyers

In this market good Short Sale Negotiator will process and close Short Sale with good buyer/offer in 3-4 months. (all depend on how many lenders was involve) . Its very important that the Seller provide the negotiator with all necessary document on time. If the bank asking for additional documents the usual time to submit is 3-7 days after that the bank will close the file without letting you know (most of the time). It is extremely important for the seller to provide all necessary document s on time and within the time frame.
If the seller did not provide the necessary documents after 4 months I guarantee the bank close the file. I suggest you hire Short Sale Negotiator it may cost you $300 to $600 (you can ask the seller to split the cost of the negotiator) but at least you know the work is getting done. Good luck :)

Sincerely
Roza Radkiewicz, MBA, PA.
Certified Short Sale Negotiator
1031 Exchange Specialist
The Law Firm of Andrew D. Tarr, Esq.
The Real Estate Club, LLC
18660 Collins Avenue, Suite 107
Sunny Isles Beach, Florida 33160
Direct: 954.993.8747
Fax: 305.614.3101
email: rozaradkiewicz@yahoo.com
http://therealestateclub.com/rradkiewicz
0 votes Thank Flag Link Mon Jan 17, 2011
Like Phil, I agree that the seller isn't motivated to actually perform on the short sale. Even though it appears the seller is breaching the contract terms; there really is no recourse due to the buyer (you) has not been financially harmed by the breach. As a cash buyer, if the property is in a distressed state and is proceeding through the foreclosure process you may just wait till the property is at the foreclosure auction and purchase the property then, or wait till it becomes a bank owned property and then purchase.
0 votes Thank Flag Link Mon Jan 17, 2011
The owners have no time restriants. The most common problem when dealing with shortsales is finding a seller with true intentions of selling. Because of the lengthy process time , and no guarantees on the results, leaves the window open for either party to change their mind and back out of the deal. If the seller is not willing to cooperate, I would suggest moving on and look for another home. Never leave all your egss in one basket . Especially with a shortsale.
0 votes Thank Flag Link Mon Jan 17, 2011
Right up to when his bank forecloses....
0 votes Thank Flag Link Mon Jan 17, 2011
The answer to this is in your contract.

The short sale contracts that are standard in Florida have a clause that states the timeline for completing the short sale request and forwarding it to the lender. I use 5 days. Outside of that, the seller is out of contract.

I agree with Phil Rotondo (one of the other answers) that you should move on. This seller does not seem to be very cooperative. To complete a short sale, seller cooperation is imperative.

If you decide to stick it out, keep this in mind, you have waited 4 months already. If the seller complied today, it may be another 6 months before you hear from the lender. I am sure you can find a better purchase in that time.
Web Reference: http://www.dkrealtor.com
0 votes Thank Flag Link Mon Jan 17, 2011
Good Afternoon Goodlord;
I would have been complaining after one month had passed.
It sounds like the owner is not interested in short selling the property....or at least is not motivated to do so. At this point I don't think there's anything you can do accept to (a) move on, or (b) wait until it hits the foreclosure list.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 17, 2011
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