Home Buying in Midlothian>Question Details

Truffles_tx, Home Buyer in Midlothian, TX

How can I expedite the sell of a ShortSale?

Asked by Truffles_tx, Midlothian, TX Tue Sep 7, 2010

I recently got approved for a FHA home loan. My fiance and I recently found a home we both love. Well We signed a contract back in August, I have sent my earnest money and holding fee. The seller has already signed their portion of the contract... thing is the contract was nulled because the bank hasnt "OKed" the sell. Now we have been playing the waiting game. A few questions:

1. Should we offer them the asking price of the home or can we lowball?
2. Is there anything my realtor can do to speed up the process or haggle someone to speed up the process?
3. Is it really a buyers market? If so how come the bank hasnt jumped on the offer to sell the home?

Any advice/suggestions would be greatly appreciated. I am also a first time home buyer.Unsure if that is important info or not.

Help the community by answering this question:


Thank you all soooooo much for your responses, it is all greatly appreciated.

Ty you,
Grace Morioka
James Gordon
Pamala Bava
Scott Godzyk
Stephen FitzMaurice
Sameer Punjani

For all your repsonses. We will keep our fingers crossed and start looking for other homes just incase this one doesnt fall through.
0 votes Thank Flag Link Fri Sep 10, 2010
First off, short sales take forever. The government is attempting the speed up the process, but is failing to do so. If you really want to buy a home, get a bank owned or a regular sale. Unless you find a Wachovia short sale, these are the only ones I know that you can get a short sale approval in 10 days of submitting your offer, then close 45 days.

I've seen it too many times on mls where a property shows pending for 6 to 8 months. Then I wonder what the heck is going on only to turn out its a short sale thats, you guessed it " still in process"


0 votes Thank Flag Link Thu Sep 9, 2010

Thanks for the note, and for your effort in collecting this information.

First, the good news...

There's only one loan (especially good, since you are only dealing with one bank), there's a professional negotiator involved (and, hopefully, this is someone with extensive Chase experience), and the home is not currently set for foreclosure, which is great because it means that you'll have enough time to negotiate the sale. Also good is the listing agent is doing this the right way by hiring a professional negotiator to work with the bank.

Now the bad news...

This is Chase.

I regularly converse with many agents around the US who work short sales, and, guess what, we ALL have bad experiences with Chase. Previously, the "bad bank" spot was held by B of A, but since the implementation of their Equator program, they've gotten a little better (about 60 days faster), but Chase continues to hold the record for the most uncooperative and slowest bank in processing short sales. In fact, one of the Realtors in our group finally closed their Chase short sale after 18 months (yep, 1.5 years) of waiting. Personally, I think that Chase takes their time in the hopes that the market will improve or another buyer will come along who offers more, or the homeowner's financial situation suddenly recovers and they can begin paying their mortgage again.

Unfortunately, the bank's cooperation depends greatly on a few factors--1) loan balance; 2) number of loans, and 3) fair market value. If the bank can foreclose and get 60 cents on the dollar, but short sale and get only 40 cents on the dollar, they'll foreclose. Even if the short sale has been made between you and the seller, your agent should be regularly checking the comparables to see if values are going up or down, as this can incentivize or discourage the bank to take action. Your Realtor should be able to see the amount of the unpaid loan balance on this home, balanced against the cost of sales, and the market value. Your best bet for faster turnaround on the short sale is to make a reasonable offer at or close to market, and then have your agent regularly contact the listing agent for update. Hopefully, by nudging the listing agent, a similar nudge will be made to the negotiator in turn.

As for speeding up the process by haggling with a representative, Chase is very good about keeping their employees well shielded behind voice mails and first-name only communications, so they are hard to find--on purpose. I worked once with Chase on a REO and they were so slow that I did, in fact, do make a lot of rather forceful and pointed telephone calls to their mitigators and, while they begrudingly did what I asked, I swear they did everything possible to "slow down," so pushing never works.

As the others have already noted, if you are in a short sale, patience is your key. Also, keeping your options open to other possible home sales is good. Currently, in my opinion, the best banks to work with are (in no particular order) Citibank, Wells Fargo/Wachovia, PNC and--running last--B of A. Chase, unfortunately, is still topping the list of the longest "wait times" for short sales.

Good luck!!

Grace Morioka
Area Pro Realty
0 votes Thank Flag Link Wed Sep 8, 2010
@ Grace

Here is the info you requested, hope it helps

1. How many loans are on the home? Just 1
2. Who is/are the bank/banks holding the liens on the home? Chase
3. How much experience does the listing agent have in negotiating short sales? A little, I'm not sure
4. Is there a professional negotiator involved in the short sale? There is a negotiator involved
5. Is the home set for foreclosure? When? No
6. What is the fair market value on the home? $145,000 or above
0 votes Thank Flag Link Wed Sep 8, 2010
Find out if the bank has ordered a BPO - if they have determined the value of the home. Sometimes the banks are so overwhelmed with homes the process can drag out. A good agent should be able to find out where the bank is in the process and how long (in general) they have to go.
0 votes Thank Flag Link Tue Sep 7, 2010
Another option is to buy the property with with seller financing rather than via a short-sale.
0 votes Thank Flag Link Tue Sep 7, 2010
Thank you all so much for your quick responses. I will email my realtor those questions that Grace posted and hope to post them by tonight for more feed back.

Again, thank you all soo much in helping me understand this process.
0 votes Thank Flag Link Tue Sep 7, 2010
The assest mgrs any bank have approx. 4000 to 10,000 properties THEY DEAL WITH their files only... so you are only a mere number in line.

Listing agent needs have communications with the bank HOWEVER it is process for any short sale we notify our clients although you placed a sales offer on short sale BEST keep moving your offer IF BANK DOES NOT LIKE we may never receive a response.

In most instances it takes up to 45 days have a response !

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Sep 7, 2010
Truffles with a short sale, the sellers bank will only approve a short sale where the price is at or near current market value. They will not accept a low ball offer, they dont have to. They will assess what the home is worth in todays market, assess what they wil net if teh do foreclose and use their formulas to accpet or counter your offer. By putting in a realistic offer from the start it can cut the amount of time down.

In the best of time the process takes 6 weeks to approve. Once your offer and teh short sale package is sent into teh bank, they have 10 days to assign a negotiator, that negotiator then has 10 days from then to review teh offer and order the appraisal, teh appraiser has 2 weeks to complete the appraisal, then th asset manager could take 2 weeks to make thier decision on the best case scenario. if there are more than 1 loan it can and usually is longer. if your offer is too low it will be longer, if the negotiator for teh seller has not sent everything in, it could take longer. The key is constant communication.

Please see my blog for tip on getting a short sale approved.
0 votes Thank Flag Link Tue Sep 7, 2010
Welcome to the world of short sales. Short doesn't stand for short time to close as you have probably realized. I would say depending on how many loans on the home (let's hope only one) you might be farther then you think in the process. Banks are all different, there are no set guidelines for realtors to go by with these types of sales. We have to bring our patience to the table with ss's. So many things are involved. My last one, the negotiator at the bank decided to go on vacation and not tell any one so while she was away we heard nothing. We were just about three months into it and the emails stopped, of course email is the only way we can communicate with the banks. We were a little ticked when we heard this to say the least, we almost withdrew the offer. Somehow we managed to get things in high gear after that and close. It was a little over three months. If you really like the house and want to wait, be patient, we are at the mercy of the banks with ss's. You would think they would want to get them off their books fast, but I guess we all have different definitions of fast.

Good Luck
0 votes Thank Flag Link Tue Sep 7, 2010
Truffles every market is different and the price range and area you are in may not be a buyers market. There are some price ranges and neighborhoods in my area where it is more of a sellers market.
What did your Realtor® come up with for a fair market value on the home? Asking price may be a lowball depending on comparable sales.
As for speeding up the process I have listed properties all the way from where we had an approved price when I listed the property up to properties that had 2 mortgages and the first would not start the process until the property had been listed for 90 days.
If you like the property hang in there but some agents list a property at a very low price hoping to get the short sale process started with the lender to find out what the lender will take.
0 votes Thank Flag Link Tue Sep 7, 2010
Thanks Truffles for your post.

Before we can answer effectively, can you answer these questions:

1. How many loans on the home
2. Who is/are the bank/banks holding the liens on the home
3. How much experience does the listing agent have in negotiating short sales?
4. Is there a professional negotiator involved in the short sale?
5. Is the home set for foreclosure? When?

Based on your answers above, most of us who play in the "short sale" arena should be able to answer your questions about expediting the sale, offering more, etc.

Good luck!!

Grace Morioka
Area Pro Realty
0 votes Thank Flag Link Tue Sep 7, 2010
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