Many short sales fall thru for many different reasons. if you truly like or love the home. It may be worth giving it a shot. Some buyers will back out if the short sale takes too long or they find another property.
Since Sharon said that sge loves this property, my recommendation stands to put in an offer. The only work involved is writing up the contract and, like I said, she can keep searching and if you find something better can always withdraw that contract to place an offer on another property.
Mortgage banking news posted that short sales on average are taking less time than previous years - "as little as 30 days for approval". The key is for the seller to have the correct paperwork submitted forbthe bank to approve them to short sell the house...and banks will rarely let the property go for less than 95% of the current market value so any offers submitted for less than that are likely to be met with no response from the asset manager handling the file. Getting a short sale approved is much like getting a new buyer approved for a home. The seller must provide income, asset and expense documentation to prove they can't afford the home. Many files are discarded because they are not complete because inexperienced agents take listings for short sales without understanding how the banking industry works on the secondary side.
Feel free to xall me to discuss more. I have spent a year investigating this process and could enlighten you on how to get short salesthrough in a timely manner.
check out my video on my blog.
If the bank is still reviewing offers then that would be an indication that they are not satisfied with the first offer that was presented to them. It does not matter what the home occupant accepts as they are not the true decisionmaker on the offer. The bank asset manager is the one who actualy makes the decision on whether or not to accept the contract, not the underwater homeowner. That being said, I would say put your offer in and keep your eyes open for other properties that might catch your eye. If you find another property before the bank accepts your contract then you can always withdraw your offer.
Check out my blog for more information on short sales.
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation