Did the listing agent not provide you with the approval letter? Sounds to me the listing agent may have been sitting on the letter?
Good luck, I hope it works out for you.
I spoke with an agent yesterday about a pre-approved short sale who said it was of little or no consequence whether or not the short sale had been approved. The bank(s) were finding all kinds of reasons to confound the process. She was frustrated to the point that I could hear it in her voice.
My guess, since the latest data shows improving prices, banks are prolonging the process in hopes of a better offer. She stopped short of saying that my offer would not be considered, even though there was an offer pending.
Patience is a virtue. But the squeaky wheel gets all the attention. If time is running out on you,
let them know that it is running out on them too. Current market conditions dictate more constraints on them than you. Do keep your credit intact, it is very difficult to get approved for a mortgage loan these days.
Not an agent... an investor.
Unfortunately, as bad as the major banks are servicing short sale requests, BofA is, by far, the least customer service oriented. They tend to under pay, under train, and over work their employees. That then leads to massive turn over.
The best advise I can give you is to summon more patience than you may ever have.
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None of us, not even you, have access to all of the data BOA has on this file. For all we know BOA might be better off foreclosing on the property, some times that is the best option for the lender.
There is a mathematical formula that would make it clear but I donâ€™t know what it is. A couple of the components would include some number that represents how much you think it is a great deal vs what the lender would receive if they just take it to the court house auction. If they come out better doing that they donâ€™t want your deal to close.
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Financing Kentucky One Home at a Time
Unfortunately the short answer to your question is this: there's nothing you can do. Even when the negotiator representing the seller in a short sale (Realtor or Attorney) is sharp and on point, at the end of the day the entire short sale process is dependent upon the efficiency of the Lender who must approve it.
The confusing thing for me is this: BofA was the first to adopt the "Equator" system for approving short sales. Folks I speak to here in New York have told me how efficient the system is and how timely the BofA short sale approvals are.
My guess is this: the Seller dragged their feet on this transaction. "Garbage in, garbage out," as they say. If the Seller and/or his negotiator did not present a complete package to BofA in a timely manner, then you really can't fault the bank.
As for the foreclosure, yes, it's a little realized fact that often in the short sale process the Lender is also moving to process a foreclosure simultaneously.
Not much you can do. If you are completely frustrated I'd recommend what I tell all my clients here in New York: DON'T BUY A SHORT SALE!!!
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Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
Bank of America - an "F" graded lender
Wells Fargo - an "F" graded lender
Short Sale - The most convoluted buying option EVER.
Time constraints - Not compatible with short sale
Buyer - the least significant position in the transaction
Desire- you REALLY want the house. 70% of short sale offers never close as short sales.
If there are multiple loans, insurance companies and investors involved, the outlook becomes even more bleak. With such a list of ingredients one can only expect a wild ride trying to bake this into a home sale.
Read the overview of a short sale your agent provided including the disclosure document you signed. Come to terms that it's all true. Now, you must wait and/or have a plan B ready.
As the least significant player in the process, and very likely the first buyer to make an offer, you need to realize you are the 'token' buyer for the seller. Your role is solely to get the bank to respond so they can move to the next phase, usually the next buyer. You will realize why shortly.
You must keep reminding yourself that his may NEVER happen. This is so uou will not be all that disappointed when the predictable occurs. Should a miracle occur, you can truly rejoice. When a real estate professional advises a buyer that short sales are not for everyone, especially the faint of hear or impatient, they really mean it!
I wish you the very best in buying your new home.
Real Estate transactions are not handled by ORAL communications.
Banks do not give ORAL approval of Offers.
If you have in the CONTRACT that there will be a 45 day Escrow, (No Bank would approve the wording; 45-60 days), then that cannot be chnaged ORALLY!
You would have to receive a WRITTEN adendum.
Everything is so screwed up, it is unbelievable!
The offer on a short sale is subject to the seller's lender approval. And their approval may come with conditions and restrictions.
The listing agent could attempt to convey to B of A your time line and request B of A to push out the foreclosure date. Perhaps it needs to be escalated to higher management.
Short sales are not for the faint of heart. Your agent is your best resource.
All the best to you.