Home Buying in Plano>Question Details

Tra, Home Buyer in Plano, IL

My parents have been in a long process on purchasing a short sale home.It is in the final stages. Is there anyway they won't get the house?

Asked by Tra, Plano, IL Wed Nov 9, 2011

It has been over 90 days .Their offer was accepted on the house, they had their apprasel, their loan was approved and they have dotted all their i's and crossed all of their T's. Everything is where it should be and their lawyer said it was all good and that now they just have to play the waiting game.My parents are worried that the deal will fall through. Can that happen and why?

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Teresa, Congratulations I hope all goes well for you and your parents. Please contact me when it all is completed. I really am curious to see that everything closes on time without any setbacks.

Sincerely,


Rob Hughes: Long & Foster Real Estate Inc.
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(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

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0 votes Thank Flag Link Wed Nov 16, 2011
My parents are now waiting on the closing date so they are coming to the end of the short sale. Thank you all for your advice. Teresa Kropiwiec
0 votes Thank Flag Link Wed Nov 16, 2011
Of course it could fall apart, any transaction can. Too late to worry about it now, your parents knew they were buying someone else’s problem. They took this path because of a real or perceived value which raises the level of pressure they are feeling.
Tell them not to worry; they do not want to rush the problem because they want clear title. Mistakes happen when people get anxious, ride it out.

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0 votes Thank Flag Link Tue Nov 15, 2011
Hi Tra-

I would ask the same question...who accepted their contract? The bank or the seller? What appraisal was done..your parents or for the bank- BPO (Broker's Price Opinion) on the home they are buying? When you say final stages do you mean it's in investor review or there is a verbal approval? By answering those questions we would have a better idea of where your parents are at in the process.

Once a bank gives a written approval on a "short sale" the whole process will move quickly as the bank will normally want to close in 30-45 days.
0 votes Thank Flag Link Tue Nov 15, 2011
Tra, the below answers are basically true. However, everyone in the transaction needs to be aware that the bank-lender is calling all the shots. They don't have to do anything if they don't want. Nishika is accurate that 6-10 months is a normal time for most short sales, especially if there are more than 1 lender. First the homeowner Must have a hardship, medical, divorce, significant loss of income. Owner must provide a detailed and current financial status of that owner to the bank. The appraiser or Opinion of values are also serious. If the bank appraises the property higher than the current offer will need re-negotiation.

Best thing is your parents are pre-approved with nothing to sell or be cash buyers, get all inspections done up-front, as most Short-sales are sold AS IS in my experience. Also have 1 contact person who is authorized to communicate with the lender. They don't respond to multiple calls/emails for the same property well. Extremely important to track the Sheriff sale or Auction date as Lenders foreclose simultaneous while the short-sale is being processed. They want to be able to move directly to foreclosure without wasted time if the transaction does not close. Your folks need to press the person communicating with the bank weekly, and track the foreclosure date.

Lenders have to explained to their investors why they took such a loss, and it is a very time consuming event. Banks like Bank of America, and ASC/Wells Fargo have thousands of these properties all over the country, and you are dealing with wage earners getting paid whether the property sells in a short-sale or gets foreclosed. Sad but that is the reality.

If your parents are able to wait, then most likely the closing will eventually happen. However' in my experience the majority fall-through because buyers just can not wait any longer. I just went to closing today on a 5 month long short-sale. And that is because the process was started with a previous buyer who backed out after 4 months.

I wish you all the best,


Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

Cell# 484-410-9765 (Preferred)

http://WWW.DELVALREALESTATE.COM

http://WWW.ERICMAYMORTGAGE.COM
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Tra,

As previously stated, it's not in the final stages until the bank that the current owner has requested short sale approval from approves the sale and agrees to accept less than what's currently owed.

The timeline for a short sale varies across the country and with different banks, but 90 days could still be considered relatively early in the process. It can easily take at least 6 months with some short sales.

Unfortunately there's not much certainty in the purchase of a short sale, but with your parents completing everything required of them, now the most you can usually do is wait.

Best wishes,
Nishika
0 votes Thank Flag Link Wed Nov 9, 2011
As Ron says, it depends on who accepted their offer. If it was the sellers, you're in the beginning stages, not the final stages. And, yes, there's a very good chance the deal will fall through. It could be foreclosed upon in the meantime. The lender may not approve the contract. The appraisal may come in below the offering price.

If the lender approved the offer, then your parents should be near the end of the process. It could still fall through, but the odds of it succeeding are pretty good.

Hope that helps.
0 votes Thank Flag Link Wed Nov 9, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Crital Question:

You say that their Offer was ACCEPTED; by WHOM?
If it was ACCEPTED by the HOMEOWNERS, then they do not have a CONTRACT!
If it was ACCEPTED by the BANK, then they should have a signed Contract, and it should not be much longer:
Kinda blank and white.

Good luck and may God bless
0 votes Thank Flag Link Wed Nov 9, 2011
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