Home Buying in 95135>Question Details

edlundmar, Home Buyer in San Jose, CA

I have a loan for a short sale home. I cannot get the bank to give me a closing date. closing date from the bank.

Asked by edlundmar, San Jose, CA Tue Mar 26, 2013

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Thank you for your question:

As Cindy Davis pointed out, the short sale lender sets the price and the terms.

Short sale lenders work on their own time schedule. Some are better than others, but in almost all cases the short sale lender will not give you a time and a date when you can expect approval.

However once the short sale lender gives you approval they will give you a time schedule that they expect you to meet with no exceptions.

That is one of the reasons that you should expect a substantial discount from the fair market value for the purchase of a short sale.

if you are going to be forced to put up with the uncertainty and delays in getting the approval from the short sale lender and then comply with time deadlines that are set by the short sale lender and the fact that those time deadlines set by the short sale lender are often unrealistic and unreasonable.

At the very least you deserve a substantial discount from the fair market value of the property to compensate you for putting up with the behavior of the short sale lender.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
1 vote Thank Flag Link Tue Mar 26, 2013
Thank you for your reply
Flag Fri Mar 29, 2013
I am the buyer, and was told the bank wanted to close in 45 days, by the realtor. I got my loan for the short sale home and it is now over 60 days, and the bank has not given me a closing date. I had to have my bank do an extension, which will cost me $425 at closing, for the extension.
1 vote Thank Flag Link Tue Mar 26, 2013
I'm not clear if your are the seller or Buyer. In any event your agent is your best resource.

Short sales are anything but. And depending on all the nuances of this transaction, will determine how it turns out.

All the best to you.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Tue Mar 26, 2013
I am the buyer, and was told the bank wanted to close in 45 days, by the realtor of the short sale home. I got the loan, and now it has been over 60 days and the bank has not given me a closing date. I just got an extension from my back on the loan for the short sale house. It will now cost me an extra $425 at closing for the loan extension. I had an inspection done, paid the bank $988 and have heard nothing from the realtor , as far as a closing date.
Flag Tue Mar 26, 2013
It's a matter of waiting until THEY are ready and willing to cooperate - there is nothing you can do to get them to speed things up or give you any specific date. It’s just the way it is – VERY frustrating, but very real.
1 vote Thank Flag Link Tue Mar 26, 2013
Unfortunately, that's not quite common. Hopefully your Realtor explained what you were getting into with a short sale...every detail, price, terms, dates, are all on the bank's terms.

Hang in there...and best of luck.
1 vote Thank Flag Link Tue Mar 26, 2013
no my realtor did not, and thank you for your reply
Flag Fri Mar 29, 2013
Be sure your agent is trying to keep a friendly flow of information coming from the listing agent. The process generally involves a large bureaucracy (original lender) which provides little information and provides it slowly. Unfortunately don't be too surprised to see last minute demands (for more money).

Good luck,

Juliana Lee
650-857-1000
Top 2 agent nationwide at Keller Williams Realty

Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Sun Mar 31, 2013
Are you meaning that they are not giving you an approval?
0 votes Thank Flag Link Wed Mar 27, 2013
no, they wanted to close in 45 days the sellers bank, and it has been over 60 days, so my bank gave me an extension on my bank loan, but I have to close before April 22.
Flag Thu Mar 28, 2013
@Charles Butterfield

You wrote: “At the very least you deserve a substantial discount from the fair market value of the property to compensate you for putting up with the behavior of the short sale lender.”

While I agree with the theory, your statement does not bear out in this current market. Inventory is so limited that short sales are selling strongly, quickly, with multiple offers and for full asking price and above.

If a buyer embraces your theory and makes offers that reflect an expected discount due to time lag in obtaining approval from the short sale lender, that buyer will be writing losing offers in the current market.
0 votes Thank Flag Link Wed Mar 27, 2013
When Lenders approve a short sale, they issue the approval in writing. This written short sale approval document spells out the terms of the (short) sale. In addition, it states when the transaction is expected to be closed. Please ask your agent to get a copy of the Lender short sale approval from the listing agent. Also, inquire about other possible liens in the property title. If the first lienholder approved the short sale but the second and/or third lienholders have not approved, the transaction will not close. Keep in mind that all the lienholders need to have agreed to some term and their approval needs to be in writing. Your agent can help you investigate with the listing agent and/or the listing agent's short sale negotiator.

Good luck!
0 votes Thank Flag Link Tue Mar 26, 2013
Thank you for your help. The realtor is denying she told me to get a mortgage within 45 days. I may not get the home after April 20, because my bank has to pull another credit report, and they had me close accounts.
Flag Wed Mar 27, 2013
Unfortanately you may not have been told how a short sale really works. First rule is only believe what you see in writing from the sellers bank. they can say anything but it is only what they put in writing that counts. You may have worked faster than they can. you need to have your agent get real answers from the listing agent where they are in the process and something in writing if they have or have not got approval for the shorts sale from the sellers bank.
0 votes Thank Flag Link Tue Mar 26, 2013
This just doesn't sound right:

You should have been "told" anything; you should have a piece of paper in your hand!
We are used to seeing an ADDENDUM from the Bank which will give confirmation of the ACCEPTANCE.
You should know who the TITLE COMPANY is; and you and your Realtor should be communicating with them. The TITLE/ESCROW company works for the Buyer and the Seller, equally. The Title Company will give you the Closing date; do not rely on any communication from the Seller/Bank!!!

I would bet that you are not in an Escrow, that you do not have a Contract: I would put money on it!
0 votes Thank Flag Link Tue Mar 26, 2013
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