Home Buying in 92821>Question Details

Buyer, Other/Just Looking in Brea, CA

If i placed an offer on an " approved short-sale" will the process go faster???

Asked by Buyer, Brea, CA Tue Feb 10, 2009

The asking price was 450,000-475,000 and I offered 435,000 with 230,000 cash down. Should I be okay on this? and how long will it take to get some kind of response????

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Answers

12
Veruska,

IT depends onwhat the listing agent meant by "Approved" Some agents use this phrase when only the seller's hardship has been approved. Your agent should ask the listing agent if an offer has been submitted to the lender. IF not, then there is not yet an "Approved" price. With the listing price was in this variable range it could be that the lender had approved the price at $475,000. Being outside the range could cause the offer to go back to square one on the approval process and therefore a longer time period till closing. Communication between your agent and the seller's agent is key to knowing how long the process will take. Every short sale is different and many variables can effect how long it takes for your deal to go through.

I hope this helps.

Bill M GGodwin
First Team Real Estate
949-606-5669
Bill@BillMGodwin.com
Web Reference: http://www.BillMGodwin.com
1 vote Thank Flag Link Tue Feb 10, 2009
Hi........

Offers are not worth the paper they are written on for some very specific reasons and you may never hear back...even with a large down payment .

However, you can leapfrog over the competition with one specific strategy our team wrote the book on.

I would share this strategy in this forum but our methodology is proprietary information.

Kurt Steinhebel
Century 21 Award
Anaheim Hills, CA
0 votes Thank Flag Link Sun Feb 21, 2010
Each of the banks has a different process. The main thing you need to know is if your offer was accepted by the seller and if the agent presented your offer to the lenders. Do you know how many loans and how many lenders are part of the transaction?
0 votes Thank Flag Link Tue Feb 16, 2010
Yes, It's possible. It would depend on the bank.
0 votes Thank Flag Link Tue Jan 19, 2010
It would go shorter if you offer the approved price, otherwise negotiations can keep going with the lender, it will be a shorter process since the negotiator has already been assigned. If you have more questions just call at 714-264-5890, or you can search for properties that are not short sales and the process is shorter...
Web Reference: http://www.theOMLS.com
0 votes Thank Flag Link Mon Jan 11, 2010
Hi,

If the entire short sale process has been completed...including the bank appraisal....and an approval has been issued, then 'yes' it should go faster. But that's if you offer the bank the approved price....since you didn't, they are going to have to send it back for further review and that can take awhile. I wish I could say that banks care if you are putting lots of cash down....but they don't. They really don't have any common sense at all. The short sale lender negotiator knows that another offer will come along and they are trying to show that they got the most they could for the home.

Karen
0 votes Thank Flag Link Mon Jan 4, 2010
Short sales take always more time and have to go through a certain process. Keep in mind that the bank will lose money on a short sale so they are not necesseraly in a hurry to close the deal and lose money.

If you were to lose money on a deal you would probably think very carefully at your decisions. Banks have a lot of short sales to deal with, your is not the only one and they may have to go through other first before they work on your approved short sale.

I would suggest you to go after REOs, because those properties have already been repossessed by the banks, so faster to deal with. Short sales may even take up to 9 months. If there are more than one lender then you can bet that those will take a long time.
0 votes Thank Flag Link Sat Sep 26, 2009
Approved short sale does not necessarily mean the leader approved the listing price.The listing price could be $475,000, this does not mean the leader will accept an offer of $475,000. It is almost impossible to know up front what a bank will take until they have gone through the process. It's hard to get a handle on the price that a bank will take until they do their own BPO Brokers Price Opinion.
0 votes Thank Flag Link Sat Sep 26, 2009
Bill's answer is great. There are so many agents working short sales that do not have a clue. Approved or not, short sales are tough. A REAL approved short sale will move more quickly, but your still looking at 45-60 days to close. Most take up to 90, although it seems just over the past month or so banks are becoming easier to work with. There are so many factors that are out of your control, so they are always unpredictable.

Like Bill said, communication is key. Make sure your agent is on top of this each day, and hopefully the agent on the other end is also experienced with short sales as well.

Good luck to you and I hope for a speedy closing for you,

Jeremy Lehman
Century 21 Beachside
Jeremy@LehmanHomes.net
0 votes Thank Flag Link Tue Feb 10, 2009
Bill Godwin's answer is spot on. for whatever it's worth.

Jeff and Cheryl Fox

Properties Plus
818-995-9108 Office
800-917-8080 Toll Free
818-207-2013 Cell
Email: mail@jeffandcherylfox.com
Webstie: http://www.jeffandcherylfox.com

16133 Ventura Blvd. 7th Floor
Encino, CA 91436
0 votes Thank Flag Link Tue Feb 10, 2009
From what I understand, an approved short-sale SHOULD move quicker, simply because the bank is already involved. But remember, it is a bank, not a person. There are no guarantees.
0 votes Thank Flag Link Tue Feb 10, 2009
If you offer what the short sale was approved at, the process will go much quicker. If you offer less than the approved price, then it is "subject to lender approval" all over again. Have your Realtor inquire what the approved price is and then offer that if you want a fast process and if you want to move into your home by spring time instead of summer time ;-)
0 votes Thank Flag Link Tue Feb 10, 2009
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