Home Buying in Frederick>Question Details

C.quinones, Home Buyer in Frederick, MD

I just got word from my Realtor that the bank did the BPO. What happens next ? On the contract, the bank has 45 days to respond.

Asked by C.quinones, Frederick, MD Sun Sep 23, 2012

What happens if they miss the deadline?

Help the community by answering this question:

Answers

4
Laura Roskelly’s answer
Hi C,

The bank does not have to abide by any of the timelines in the contract. However, they give you the option of terminating the contract if you haven't gotten an answer in the time frame. I can tell you that as an experienced short sale agent, the shortest approval time I will write into a contract is 90 days and that would be optimistic.

I've seen sales approved (or counter offered or rejected) within 90 days of a BPO but I've also had them run much longer.

I am so sorry that your Realtor did not explain the short sale process to you up front. It is not a guaranteed purchase. The bank can come back and say no, particularly if the property was sold way below market value. The only person controlling the final yes or no answer is the bank. And they do that on their schedule which is generally 90 days to 9 months from the time you sign your contract.
1 vote Thank Flag Link Mon Sep 24, 2012
If your real estate agent used the MAR contract and MAR short sale addendum, there is nothing that speaks directly to the BPO. As a buyer, you give the bank a specified number of days to issue an approval. If the bank does not issue an approval in that time period, the contract becomes null and void. After the bank completes the BPO, they should be fairly close to issuing an approval if all of the seller's documents are up to date. i hope that helps.
1 vote Thank Flag Link Sun Sep 23, 2012
The bank does not have to answer by that deadline. That is the amount of time you have agreed to give the bank before you are aloud to exercise your right to cancel the contract on your end. But that doesn't mean that you have to cancel either. The bank is going to take as long as they need. Hopefully once the BPO is finished they will be reviewing the file soon as get you an answer.

Best of luck!
0 votes Thank Flag Link Thu Mar 20, 2014
Since you have a Realtor, you really should direct your questions to him/her. The answer to your question will be in your contract, which your agent can explain.
0 votes Thank Flag Link Mon Sep 24, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer