Who told you that Banks will answer in 2 days on a Shortsale?
2 to 6 months is more like it!
ps. The banks do have a soul; they don't care if you are a veteran.
pss. So you offered $6,000 EXTRA, (less closing costs [which can exceed 6% on that house]; what is the house WORTH? That's what the Bank cares about.
ppss. Thanks for serving.
Certainly a separate email (I am old fahsioned - I pick up the phone and actually call people!!) would have been more appropriate.
Best wishes in the future!
Trying to buy a Shortsale, with a VA loan and multiple offers is doomed to fail.
The Bank will normally refuse to look at the VA offers because they will make less NET on the deal.
And when they can demand CASH offers; so much the better for them.
There is no emotion, no espirit-de-corpse for Veterans by the Banks; it is all about $$.
It is amazing that you got an answer that quickly; Usually, the Banks will take their time, choose only the top offers and ask for thier "best and final" and ignore the rest.
Your Agent did nothing wrong or enethical; if 4 buyers wanted to make an offer, what was she going to do; refuse to take them?
It sounds like she did act very professional, everything considered.
Debra I know that by law our realtor was not in the wrong but her way of notifying us was not appropriate. She sent an email to us and the other buyers who also submitted offers through her cc'd in. She could have copied and pasted her response into 4 different emails. This probably is also not illegal but we do not agree with her ethics in this case and hope to find someone more professional.
That's only the beginning of the very arduous process of buying a short sale.
So - don't think signing, or accepting the contract means it is a "done deal"............the bank will now sit on this offer until they get aorund to having an appraisal done...........and whatever else it is they do which usually, imo, makes no sense anyway..........this part of the prcess can, and usually will, take MONTHS, not days!
The bank may come back with a counter offer way down the road..........the counter may or may not make sense......banks don't have to explain what they do or why.
So.........why not put your effort into buying a home from a seller who doesn't need to short sell the house............you will have a much smoother road to home ownership.
And........your agent did nothing wrong by submitting other offers.........I am sure the sellers and their agent were waiting to get all the offers in front of them before making a decision...."taking until the next morning" to submit your offer didn't cause your to lose the house.
Your terms or price did - someone outbid you, plain and simple.
You can't expect your agent to refuse an offer from another client just because a different client also has interest.
Better luck next time.
We were told that with VA financing that the buyer cannot walk away with cash from closing so whatever was left over legally cannot come back to us but must go to the seller or their bank. If this info is correct then one or both parties do have a chance of making more that listing.
Please keep in mind I don't know what the market is like in Hudson, so this are general points.
With asking 6% in closing cost, they will actually keep $240 above asking price, so them "walking away with more than asking price" is not a real consideration here. It will be viewed as an offer at asking price by them.
Also, will the home appraise at 96,000 or lower? Remember that as a Short-Sale the owner/resident doe not set the final price, that gets done by the lender/mortgage holder...so if the seller accepts your offer it does not mean the lender will. You will require 2 acceptances to actually have a contract. Frequently the lender comes back asking for more than the seller advertised for.
What if they received another offer at 90,000 in cash, with 3000 in escrow? They will without doubt take it because once the short-sale period is over they know it can close fast. On your offer, once the short-sale period is over then they have to wait extra for the VA loan to process.
Unless they are people who you know from the neighborhood, church or school... an emotional letter could backfire by turning some people off. This is business, and you must make it good business proposition for the seller to want to work with you.
Realize some things will be out of your control (like which offer seller chooses), and that this is a financial transaction (not an emotional one) and follow the advise of your Realtor who should guide you in to the best possible outcome (if they are experienced). Good Luck. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".