Home Buying in Clearwater>Question Details

marycolletti, Home Buyer in Clearwater, FL

I have contracted to buy a short sale and it is almost 4 months. The contract price is the same as identical comps in subdivision.

Asked by marycolletti, Clearwater, FL Mon Oct 1, 2012

The Seller is anxious to sell he has an attorney helping him. My realtor is working very hard to try to push the sellers realtor and the sellers attorney. Still getting nowhere. Is there anything I can do to speed up the process. Thank you

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11
Mary,

In "short" Short Sales are anything but SHORT. Even if there is only one loan-one lender, that loan may have been sold to 5 different investors and the bank negotiator has to get them all to agree to the same terms. The fall through rate for short sales is very high. If there are two or more liens the fall through rate increases dramatically - the average rate we are often given is over 70%.

There are no guarantees with short sales. Even if you give a full price offer. The lenders will do an appraisal or broker price opinion. More often we are seeing the lenders counter with higher prices. At the same time the foreclosure process may be going on on a parallel path.

Then you need to consider the Seller's motivation. Are they cooperating or taking as long as possible for their own reasons.

If you have any time contraints of when you have to be moved by, then you are probably not a good candidate for a short sale.

As far as escalation and hounding...every lender-title company- attorney negotiator is different. There is a fine line between keeping the pressure on and annoying the one you need, to the point of putting your file on the bottom of the pile. Walking the fine line is an art form and hopefully your Realtor is experienced at it.

I truely understand your frustration, I have had an offer in on one since February of this year. The file has been shut and started over 3 times....some for extremely illogical reasons. I really do understand your frustration. This is why I counsel clients, go through a lot of questions about what they can and are willing to put up with before showing short sales.

In summary as most have pointed out...if this is the house you REALLY REALLY want...wait it out and you might get it. If not and you are at a point in the contract that you can exit and get your escrow back...it might be time to consider that option. Good luck which ever you decide. I feel an informed client makes the best decisions regarding their real estate needs.

Sincerely,

Pam Cohn
Broker Associate, GRI, SFR, CDM, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
pcohn@prutropical.com
727-204-7155
0 votes Thank Flag Link Tue Oct 2, 2012
Unfortuantely, each short sale is different. The deciding party is the bank or banks holding the mortgages. Just be patient. Working in your favor is the fact that banks are now more receptive to short sales than they were in the past.

Vangie Pappas
Pappas Realty & Management Co.
0 votes Thank Flag Link Tue Oct 2, 2012
Unfortunately every short sale is different. Some take forever, some are quick, and some don't happen at all. If you can find out how many lien holders: 1st mortgage, 2nd mortgage, mortgage insurance company, homeowners and unsecured debt. This will help in telling you how long it may take. I just had a buyer close with mortgage insurance and two loans but it took over a year. If you can't wait move on.
0 votes Thank Flag Link Tue Oct 2, 2012
Mary...unfortunately what you have heard hear is, for the most part correct.....short sales take TIME, and the buyer must be patient....without an escalation to the bank's executive offices, you probably will get nowhere. Like Suzanne, I had a short sale which made perfect sense to close on, but the seller was nonresponsive. You might try getting the seller to escalate the offer (I bet I know the bank you're dealing with!).....

The other option is to walk away (providing your contract allows that, and most do after 3 months)....else be patient and wait even longer!
0 votes Thank Flag Link Tue Oct 2, 2012
There is nothing short about the time frame of a short sale.

the Sellers Realtor has a great impact on how quickly the short sale can proceed.

The Sellers Realtor understanding of the procedures, and which "on Line" site such as Equator to use for the short sale process.

Best of Luck
0 votes Thank Flag Link Tue Oct 2, 2012
I recently called the Office of the CEO at a major bank because I was experiencing a similar situation with my listing. They assigned someone to look into the situation within 24 hours and now, less than twl weeks later, we have a response from the bank that is reasonable. You may want to suggest the listing agent and/or the seller's attorney try that tactic. It worked for me!
0 votes Thank Flag Link Tue Oct 2, 2012
"My realtor is working very hard to try to push the sellers realtor and the sellers attorney."

Marry,
There is every reason to believe those involved on the buying side of this short sale may be terribly misinformed regarding the nature of a short sale. Badgering the listing agent accomplishes NOTHING except the need to get a few back up offer in place.

As a buyer for a short sale you have volunteered to play for the team that loses 70% of the time! It has nothing to do with the sellers willingness to sell, the buyers willingness to buy but with the patience of the buyer and the shenanigans the bank/investor/insurance co will pull during the process. In the overwhelming number of failures, the buyer frustrates themselves by demanding and badgering a process that can not hear them. Buyers of this type, often bail out of the process after making life miserable for those who had advised, as the buyer, you are the least significant player in the process and you must patiently wait for the process to move forward, in silence and with mind numbing slowness.

Short Sales are only suitable for a small segment of the home buying population. This 'Wild, Wild, West of Real Estate," where there is an illusion of rules, should be avoided by most buyers.
0 votes Thank Flag Link Tue Oct 2, 2012
Mary,
Short Sales can take a long time. On your part, you have to make sure everything asked of you,you present in a timely manner. You have to be very patient. Get all your stuff in order, so that when everything is ready to go, you can close quick.
0 votes Thank Flag Link Tue Oct 2, 2012
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You may be over a year from closing...IF EVER!

Then get ready for another BPO and the price to go even higher right before closing...IF it ever closes.

Move on, find a good deal on a re-sale or foreclosure, negotiate seller credit to pay your closing costs and close now, so you can Homestead the property and while rates for qualified buyers are in the 2% range!

http://www.pro-option.com
===
0 votes Thank Flag Link Tue Oct 2, 2012
You may be a year away from closing
0 votes Thank Flag Link Mon Oct 1, 2012
You are dealing with a bank. The bank may have 100 different shortsales going, maybe 20 forclosed properties and maybe 1 or 2 people who have to make sure the bank is getting the best deal possible. Maybe the originl loan owed still is 300k and comps are all 250k. The bank has to decide, lose the 50k allow the sale, forclose and hope by the time the home s ready to be sold the prices have risin to -hh
0 votes Thank Flag Link Mon Oct 1, 2012
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