Home Buying in 05751>Question Details

Doghouse1, Home Buyer in 05751

Is this a normal process for a short sale?

Asked by Doghouse1, 05751 Wed May 23, 2012

I put an offer in on a short sale property. I was told the bank had to approve the offer, and that I should wait for that to happen. The bank approved my offer, and stated that the seller would need to sign a 5k promissory note for the sale to go through. After this approval (and the seller's agreement) I had an inspection done. I was recently told we are waiting for the bank to put the offer in writing...What is the point of them approving the sale if it needs to be re-approved in writing??? Additionally although I know a BPO was done a while ago on the property, I'm not being told another BPO needs to be done since the last one was over 120 days ago... Which again begs the question of how the sale was approved.

Would the bank just be able to change something at this point?? Or are they just delaying this to try to play real estate agent longer?

Additionally I am buying (or trying to buy) this house in cash.

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BEST ANSWER
Hi Doughouse1,

I can appreciate your frustration with trying to purchase a short-sale. Most of the time the steps, and resteps, do not seem to make much sense on the outside, but in essence, the financial institution is trying to ensure they get the property sold at the best price, while recovering whatever they possibly can from the current owner. Your offer would have had to be approved in writing. I would suggest reviewing the contract to see what 'special conditions' are noted to identify the areas where the institution may have flexibilities in delaying the sale. Regarding the BPO's, it is typical that they continue to have the price opinions done even after acceptance of a contract. It helps to ensure the property has not incurred further damage that the selling institution needs to be aware of and also checks in again on pricing. Best of luck to you ... purchasing a short-sale is timely and aggravating, but in the end, ideally you'll end up with a property with equity!
1 vote Thank Flag Link Wed May 23, 2012
Unfortunately this is normal. You have to just keep at it, good luck.
1 vote Thank Flag Link Wed May 23, 2012
The bank should have given the listing agent a written approval of your original offer stating what conditions are included. Maybe the listing agent just spoke with the banks negotiator and they said is "should" be approved and never actually got the approval. If you never saw a written approval it may not have been actually approved.
1 vote Thank Flag Link Wed May 23, 2012
Thanks for the answers guys. I guess I assumed with my agent told me it was approved I should have asked for paperwork. Well we'll see what happens with it and hopefully it goes through. Slow and steady, right?
0 votes Thank Flag Link Wed May 23, 2012
Sounds normal to me, why most of them never close. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Wed May 23, 2012
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