Home Buying in 42101>Question Details

Jessica Flen…, Home Buyer in 42101

If I am already in contract for a short sale, would making a higher offer speed up the process?

Asked by Jessica Flener, 42101 Fri Apr 15, 2011

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Jproduce,
Since your contract is nearly up, I would encourage you to start looking, online at least, for other options. Your agent should send an email to the listing agent telling them that unless the bank approves soon, you will be moving on. The bank may not care, but if somehow someone there does, it might help.
Losing paperwork is one of the most common reasons short sales take so long and often fail to close. I know from many personal experiences that I have successfully faxed in all that was requested. I've followed up within 48 hours and had the bank confirm my fax was received and it was complete, only to have time go by with no news and finally have someone at the lender tells me forms were missing. It's a very frustrating situation.
Regardless of the reason or who’s to blame, start working on two tracks. Tell the listing agent your done when this contract expires and start examining your other options.
0 votes Thank Flag Link Sat Apr 16, 2011
Jproduce,

Do the sellers have an advocate in addition to a RE agent. Those that do sometimes moce more quickly. If you have been tied up since September there may be more here than meets the eye. In my opinion, it may be time to ask some questions before evaluating your options.

Has all of the paper work been submitted?

Have the sellers submitted a "letter of hardship?"

Has a "loss mitigator" been appointed the the transaction?

Has the bank done an appraisal of had any BPO's done?

Has the lender assigned a "bank approved price?"

Are there multiple loans associated with the title?

Are there any liens on the property?

You have waited far too long already.....If you can get the identity and contact information of the "loss mitigator," this individual should be able to fill in the blanks for you. It's time to determine if you are wasting valuable time.....it sounds like either something is missing or there is something drastically wrong with the home's ownership that is making this difficult for the bank to unravel.

Time to start insisting on answers.......the answer at this point isn't offering more money.

Good luck,

Bill
0 votes Thank Flag Link Sat Apr 16, 2011
The agent is not experienced with short sales, but neither are we. We just went in her word that it would take anywhere up to a year, with 3-month contracts at a time. It's been since September and we're cutting close to OUR deadline for moving, so we probably won't be resigning the contract (which is up the end of this month). Unfortunately the "paperwork from the seller was misplaced by the agent (says the bank) or by the bank (says the agent) last month. We just really like this particular house so we're looking for last minute options before we commit to looking elsewhere.
The next one will NOT be a short sale lol.
Thanks for your responses. Glad I know not to waste our time with this. Hopefully we'll hear something before this contract is up, but I'm doubtful.
0 votes Thank Flag Link Sat Apr 16, 2011
Jproduce,

It's impossible to tell but in doing so, you would be bidding against yourself. Are there other offers or interest on the property? If so, increasing your offer amount may improve your chances.

Much of the "short sale" process is between the owner and their lender.....it's probably best to let things ride because once the bank has a clearer picture of the unknown debt associated with this property, they will likely ask you for additional money at that time.

What does your agent recommend?

Bill
0 votes Thank Flag Link Sat Apr 16, 2011
Jproduce,
I can't say no, but I don't believe it would. Banks have a process which only they can make any sense of. They take as long as they take. Your best bet to speed up the process is to make sure the agents and negotiators involved are competent and have done everything the lender requested.
One of the major reasons short sales take longer than they should is due to the seller or their agent not providing a complete package to the lender. If you can find out if the listing agent has a good track record with short sales or if they are using a short sale negotiating company with a strong track record. Your agent should be able to research this for you.
In the mean time, keep your eyes open for other homes you may want to switch to. If you are in a hurry, don't consider another short sale. Best of luck.
0 votes Thank Flag Link Fri Apr 15, 2011
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