Congratulations on being the offer presented to the bank. From what you are saying about the listing agent, it is clear that they know what they are doing. Some agents believe that they have to submit ALL offers to the short sale lender. That cannot be farther from the truth. The bank wants to see the BEST offer only, and then everyone hopes that the buyer sticks with the process and actually closes on the house.
Unfortunately, the lender is Bank of America. They are known to be the slowest to answer. Although their internal guidelines, if followed, would result in an answer in 60 - 75 days, they notoriously take longer. I have had two B of A short sales took over a year (although those were extreme cases as the short sales started out at Countrywide and then got a little lost when the operations were merged in 2009). Unfortunately, they do tend to take 5 - 6 months to get through the approval process, even with constant calling by the listing agent. They claim that their new automated system will speed up the approval process. I have not had a new Bank of America short sale since the system came on line. Hopefully they are correct.
If you really love the house stick with it. One positive to B of A is that if your appraisal comes in lower than the approved short sale price, they will lower the price to the appraised value. Both of the "long term short sales" that I negotiated benefited by saving over 15% on the purchase price of their home because of the delays in getting the short sale approved. Make sure that the your agent and the listing agent communicate regularly so you will know what progress is being made. Then hold on for the long haul and you will most probably be rewarded. Dare to Dream.
Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
Also, the listing agent needs to follow up with the bank to ensure everything they've sent, has actually been received. Many times it takes faxing after refaxing and, most definitely, confirmation calls to the bank.
Your agent needs to stay on top of not only your offer, but the status of the process. If the listing agent takes anything for granted and doesn't give aggressive follow up, you can be left lingering for months. Once you have that approval, however, it's like a normal escrow just with some added paperwork.
Lastly, if there is a first loan and a second loan on the house, it may slow things down a bit while the listing agent works with both lenders to qualify the seller. There are many variables, the bank is looking to recoup a fair market price based on their independent appraisal, but it can be worth the wait if you've negotiated a good deal. Be prepared for a counter offer, however, banks will sell short but are reluctant to just give a property away, no matter what a listing agent may think. It's all about maximizing their numbers.
Follow up is key. With good communication between your agent and the listing agent, you'll have better confidence that your patience will be worth the wait.
Good luck to you!
yes, the average is about 3 -4 months but can be either shorter or longer (especially if BofA). If you really like the home than put your patient hat on and the time will pass. Good things come to those who wait ;)
Don't give up. It can take even 6 months to get an offer accepted or rejected. It depends on what the bank decides on the property being worth. It's important to know that no one knows how long it will take or what the bank will accept. Sit tight. Bank of America is slow as a snail with short sales. Hopefully, you can get updated on where you are in the process by your agent. Hang in there.
The Carrabba Group
Keller Williams Hollywood Hills