Home Buying in West Allis>Question Details

Quinn, Home Buyer in Wisconsin

Have great credit scores and 20% down to buy a short sale but it's taking too long.

Asked by Quinn, Wisconsin Mon Dec 26, 2011

Will it help if I preapprove for a loan at the bank that holds the original loan (alreardy preapproved with a lender). Bank of America is holding us up, if we are doing business witrh them will it help?

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6
Quinn I doubt this would shorten the short sale process. Many times it can take as long as 6 months to find out the lender won't allow a short sale. Your best bet is finding a realtor that can help you negotiate on a non-short sale to get a good deal. With 20% down & good credit you are a dream buyer. Let me know if you need any help.

Mary Skanavis
Homeowners Concept
Owner/Realtor
marys@homeownersmke.com
0 votes Thank Flag Link Tue Dec 27, 2011
Short sales can take months and months and in the end not even get approved by the bank. If you are looking to get to closing any time soon I would suggest not dealing with short sales.
0 votes Thank Flag Link Mon Dec 26, 2011
Quinn,

Short sales can be fantastic deals but also quite challenging (as you are finding out). You didn't specify how long it has been as far as your offer but if they have gone past your original deadlines it may be time to cut ties and find something else. There are deals everywhere to be had, even non-distressed homes.

Please let me know if I can be of assistance with your home search.

Troy Miller
TOTAL Realty LLC
414-333-3723
troymiller@totalrealty.com
http://www.totalrealty.com
0 votes Thank Flag Link Mon Dec 26, 2011
Keep in mind that short sales are by no means fast sales, no matter who buyer's lender may be; much will depend on the number of liens involved, who is negotiating the sale on behalf of the seller, was all the required paperwork submitted, etc.; therefore, ask you agent to check for any updates...
0 votes Thank Flag Link Mon Dec 26, 2011
If your sale doesn't go through, I would urge you to look at Approved short sales (where the bank has already agreed to a price, at least theoretically) or REO (Bank-owned) properties. Generally, those sales go faster than unapproved short sales. Talk to your agent (you have an agent to represent your interests, right?) and they can help guide you through the process. If you don't have a (Buyer's) agent, and this sale falls through.... find an agent!
0 votes Thank Flag Link Mon Dec 26, 2011
Simply put "Not likely"... First it depends if the original loan was a fha loan or had PMI (mortgage insurance). if so in is not BOa but them who have the final decision to approve or deny. The key is if the offer is close to current market value and how good the negotiator is for the seller. The approval is based clearly on if the seller is quailified to complete a short sale and if teh sales price is at or near market value. If either answer is no, the short sale could be heading for rejection. The key is to have your agent contact the listing agent or the negotiator for the seller to get ahold of the banks negotiator for a real life and up to date summary of where the sale is. In short sale we communicate with our banks daily on our listings, if you do not, it sits and sits...
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Dec 26, 2011
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