You mentioned she signed another extension...was this an extension on her loan lock or an extension of the closing deadline contained within the original real estate agreement between Buyer and Owner/Seller? Yes, lots of questions. If she is waiting for the short sale appraisal then her offer is not truly 'accepted 'by the short sale lender. Their appraisal process is also at their own sweet time. They will get to it, just continue to be patient, have your Broker stay in constant communication with the Seller's Broker (who should be in regular communication with the short sale negotiator) and be certain that your offer remains in the number one position. If the appraiser she is waiting on is for her own loan approval to purchase the home, get on the phone today and everyday thereafter and do not stop until you are satisfied. Do not be afraid to ask for a supervisor or someone in higher authority at Wells Fargo, she deserves the service they promise.
I specialize in short sales and bank foreclosures. If I can be of help to anyone, please give me a call.
Howard Page 503-516-7121
I'm sending you some links to more about this new lender requirement. its basically an attempt to remove any influence the lender could have over the valuation process. My company Mortgage Trust, has a fairly good solution to mitigating these problems, but they still exist. Also, if your friend is getting a VA loan, all bets are off. Those are pretty much a crapshoot on the appraisal front.
note- the blog post i'm referencing here is fairly old. It says that HVCC does not apply to FHA, but as of Jan 1 2010, it now DOES apply.
Anyway, it sounds like your friend might be connected to a sup-par lender.
If Wells Fargo is the lender, your friend is using for purchase funds, you should know they are almost a month out in underwriting currently. If Wells Fargo is the mortgage servicer for the seller's mortgage, then what others have already posted is correct. It could be that Wells Fargo is the seller's mortgage servicer and also required the buyer to pre-qualify when them as part of the offer. Typically they only require this of their foreclosure sales but they have been trying to request this more and more lately. If your friend is using Wells Fargo, I highly suggest she call for other quotes. I'm sure she will find lower rates, fees & better turn around times other places.
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RE/MAX Equity Group
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Get your hands on the document and see for sure. If you have it then it is just a waiting game. Better get clarification.
Bets wishes and tell her to hang in there.
Re\Max Metro Gold
If your friend was lucky enough to get heer offer accepted, and is able to stay in that position till the transaction finally closes, then she should consider herself blessed. Many short sales are eventually completed through time and patience. Many other short sales, however, blow up at the last minute, when the property ends up going to foreclosure, despite the accepted short sale offer. This is all perfectly legal, and not uncommon. All contracts and short sale documents must be read carefully.
Best of luck!
I am sorry to hear about the upset your friend is feeling with the short sale purchase. As you can see by the responses below there are a lot of answers.
The short and the long of it is: "short sales" take time and realtors/brokers and the buyer's lender have very little control over when the sale will close.
When working with buyer's and selling short sales, I let my clients know that it can take 6-18 months to close the transaction. In very simple terms a short sale goes through a few more steps than your traditional purchase and sale.
- BUYER WRITES OFFER
- SELLER ACCEPTS OFFER
- OFFER IS SENT TO BANK TO REVIEW & ACCEPTE OR REJEDT (It can be month's until you hear back on this).
- OFFER IS ACCEPTED, REJECTED OR COUNTERED BY THE BANK/CREDITOR WHO HAS THE LOAN ON PROPERTY -- THIS CAN BE MORE THAN ONE BANK AND CAN TAKE TIME.
- CREDITOR/BANK PEFORMS A BPO - OR PRICE APPRAISAL ON HOME
and now and only now
-BUYER IS WORKING ON A TRANSACTION TO CLOSE
and it is still not 100% the bank will close on these terms.
It is important to understand the bank is taking for example 70 cents on the dollar and the second loan could be taking 30 cents on the dollar. The bank or banks will and do whatever they can to try and get as much money as possible on the home and closing quickly does not always work in the banks best interest.
SHORT SALES ARE NOT IMPOSSIBLE -- They just take a little more time.
ALIA MARIE HAZEN
Your Neighborhood Realtor
RE/MAX Equity Group
The next step is a level 2 negotiator which reviews all paper work (which can take 4 to 6 weeks) and if approved then they order a BPO or appraisal (another 1-2 weeks).
Then another review is done once the BPO or appraisal is in the hands of the bank (another 1-2 weeks)
Then the SS lender can issue a SS approval. Is this where they are at?
Next normal closing time lines start (2,3,4 6 week process, the buyers inspection, appraisal, documents etc) and then sign and close.