Home Buying in 22079>Question Details

Thao Doan, Home Buyer in Lorton, VA

Can you push the mortgage company to speed up the short sale processing time?

Asked by Thao Doan, Lorton, VA Fri Jul 25, 2008

We have a contract with a short sale property and it has been a month since the contract was signed by buyers and sellers. The status for the contract is "Mortgage company has ordered BPO" for the last 2 weeks. We locked the interest rate @6% and it is coming to expire soon. Is there anyway that we or the agent can pust the mortgage company to speed up the processing time? Interest rate is going up crazy lately and we don't want to miss the rate of 6%.

Help the community by answering this question:

Answers

7
Danilo Bogdanovic’s answer
Nope. If you push them more than just very diplomaticaclly and very nicely, they'll push your deal to the bottom of the stack and it'll take even longer.

Btw...the typical response time for short-sales is 3 months.
Web Reference: http://www.LoudounScene.com
1 vote Thank Flag Link Sat Jul 26, 2008
Some short sales take 3-5 months.....which is why home buyers looking to buy a short sale home should have patience and not be in a rush.
Web Reference: http://www.cindihagley.com
1 vote Thank Flag Link Fri Jul 25, 2008
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
and that is not even the worst....waiting.
i went through 4 short sales and beyond the ridiculous waiting period, some wait for last minute bids of higher than list price and/or decide to even take it off the market or make it a foreclosure.
the problem is that they can be sitting on your contract and several others that offer more knowing that they wont pick yours but wont tell you anything until 3rd party approval.
in the mean time, they can continue receiving offers but you cannot do another offer until you cancel this one...lots of missed opportunities.

i waited on 2 short sales for months and both foreclosed even though the seller was very motivated and all contracts were kicked out.
one house in fairfax list price was $200k and sold for $276k, had 26 contracts and sold after 9 months.
unless you can wait 6 months, dont bother.
0 votes Thank Flag Link Fri Oct 3, 2008
No bank are overwhelmed with everything work on their own time. The staff do realize how important to close however not much anyone person can do. Short sales use to take 30 days to close WE NOW tell our clients 60 days.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Jul 25, 2008
Unfortunately the simple answer to your question is NO! The listing agent has no control over the response time from the negotiator on a short sale. Even calls from the distressed seller don't seem to do the trick. If you are worried about losing your interest rate lock you might want to take a look at foreclosures where you are working directly with the bank. They can make a decision quickly.
Web Reference: http://varealestatetalk.com
0 votes Thank Flag Link Fri Jul 25, 2008
If you made the choice to make an offer on a short sale, then I hope your agent warned you. There are likely to be many delays, and this is only the first. While it is true that some short sales close within 60-90 days of the offer date, it is also true that MANY go far longer than that, 9 months is not unheard of... and, worse yet, the sale may not go through at all and you might not know that for 6 months. In fact, I have an offer in negotiation on one of my listings right now. They waited months and months only to learn the short sale was not going to go through. They ended up homeless and are now in a hotel, scramblng to find a home they can move into before school starts. It happens every day.

Having said all of that - if you are still ready willing and able... the squeaky (but polite) wheel does get the oil. So, constant follow up will be the best way to keep things moving along. Send the asset manager a "bouquet" of cookies for their hard work - after that, I am certain you'll get special attention.
0 votes Thank Flag Link Fri Jul 25, 2008
Short sales can be extremely frustrating. There are an overwhelming number of short sales crushing a small number of employees in the "work out departments" and so they are awfully busy. Secondly, the BPO agents have large numbers of properties to process as well. Several short sales we have worked with recently have required over 90 days before we even heard back from the bank about whether they would accept the offer they seller accepted. The bank also prefers to wait about 60 to 90 days or more waiting for other competing offers to appear on that property. So sorry for your situation though because it is making your monthly payments more costly as time passes. Is there any way your mortgage lender will extend your current rate? Remember that the closing agent will also have to research the title to be certain that there are no outstanding liens, for example. These are more prevalent with short sale property sales and must be resolved prior to or concurrent with closing. We strongly advocate title insurance rather than title opinion alone. Good luck with this. I hope it will be the exception and require less time.
0 votes Thank Flag Link Fri Jul 25, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer