Good luck sorry your home buying process is less than exciting
The only problem with this is that the seller needs to submit an accepted offer,signed by both seller and buyer and now a contract, to the bank. It will be subject to bank approval. The bank approval is a contingency to the contract.
Since the seller has accepted an offer, now a contract, then the buyer needs to meet the contingencies and deadlines stated in the contract. Inspections, mortgage contingency and any other contigencies need to be performed or met by the dates and deadlines per the contract. If not met, then the contract could be considered in default and any back up offer that has met it's contigencies and deadlines could move into first position.
Both seller and buyer would need to agree to an extension for inspections and contigencies if waiting for bank approval before doing any inspections.
Personally, I recommend that inspections and other buyer expenses do not take place until after the short sale approval is given to me in writing when I am the buyer's agent, for just this reason.
Ask your agent to get you more information about where this short sale stands, how it is being processed and what the story is with the middle man.
Short sales are often complicated. I tell both buyers and sellers to plan on about 6 months from the initial acceptance of the offer (by the seller NOT the listing agent). For people who want a quick move or a guaranteed time frame, a short sale is not the answer.
With short sales, the offer is with the seller not the bank. The seller can agree to anything, but it will be subject to bank approval. The listing agent is working for the seller and the seller is asking the bank to approve the sale. The listing agent is in contact with the bank, but only for information not working on their behalf. Doesn't really sound like the listing agent has done anything wrong here. They just relay what the band requires or counters on the offer. If the bank rejects or alters the offer, there isn't anything the listing agent can do.
Guess it all depends on what side you represent. ; )
I include a clause that says all buyer contingency periods commence after all creditors have approved the short sale in writing and the seller has accepted the terms of their approval. No need for extensions then.
Since you only mention the listing agent I will assume you didn't get your own agent that would have asked all the pertinent questions like how many liens are on the property? If it had been more than two your agent would have directed you elsewhere and you wouldn't have spent all this time waiting and money on inspections prior to short sale approval.
You have a choice to make stick it out and wait for approval or withdraw your offer and move on to the next one. I also recommend you find an agent that will represent just your interests.
Have a great day,
Is your contract signed by the Seller (per public records)? Are you buying it from an "investor" that already has a contract with the owner and is attempting to defraud the underlying lender by "hiding" your higher offer.
These vultures and their listing agents are getting investigated by the FBI so hopefully we will see fewer and fewer victims.
Ask your Realtor to dig deeper into what is going on. No reason for a 5-6 month delay unless they're attempting something fraudulent or they could be renting out the property and collecting rents.