Home Buying in 44240>Question Details

Life_aquatic, Home Buyer in 44240

How do I know if a short sale has been approved by the seller's bank. I made an offer on a home in June. The closing date was set at 45 days

Asked by Life_aquatic, 44240 Wed Sep 30, 2009

from seller's banks approval. In mid July seller's agent informed me that the bank had approved, so we set closing for Aug. 31st. My first loan was denied because the house is on leased land, and the lease did not conform to Fanny Mae rules. I filed for an extension of the closing date to Sept 23rd, after finding another bank that would deal with the lease. The 23rd came and the title company said there was no approval from the bank. Now I've been playing the waiting game, and the sellers agent keeps saying it will close in a few days. How do I find out if this thing was ever approved in the first place?

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I would ask for the Short Sale approval letter from the bank. If there isn't one that means it was likely not approved yet.
0 votes Thank Flag Link Mon Nov 17, 2014
First you have to find out about the land being leased or not. Because FHA will not finance leased land. If you are buying a manufactured home or mobile, typically FHA is the only way to finace this and there are several items in addition for them to finance. I have handled several short sales and would have no problem answering any questions that you have, since you are already working with the other agent you don't have to worry about someone giving you a line to pick up a buyer! My cell phone is 330-221-4716. 3-5 months is not unusual for a short sale depending on the lender/lenders whom hold the mortgage. If there are two mortgages it is almost impossible to do a short sale because the 2nd almost never agrees because they always lose out the most. If something was going to close your own lender should be calling you and talking to you about the loan, what the requirements for the property are and what can and cannot be done. That is unacceptable that they have not. Virginia Edwards Century 21 Wilbur Realty. vedwards2@neo.rr.com
0 votes Thank Flag Link Tue Dec 8, 2009
Do you have an agent that you are working with? That is the person that should be proactive and get your answer. You mention that there is a seller's agent, but no mention of you having a buyer's agent. It can take months to get a short sale approval from a bank, but that is about to change. New regulations give lenders 10 days to approve a short sale just passed through legislation. There are not a lot of lenders that would approve a loan when the home on leased land, as you likely discovered.

Behind the scenes, there is no guarantee that your offer is the only offer that is being considered. Often, out of need or out of aggravation, a buyer will withdraw an offer and seek another property. Short sales are about the biggest headache that buyers and agents have to deal with - hopefully, the new regulations will speed up the process. Good luck.
0 votes Thank Flag Link Thu Dec 3, 2009
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