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Monaarts, Home Buyer in

Sale Pending on Short Sale... What does it mean?

Asked by Monaarts, Wed Jan 2, 2013

I put on offer in on a Short Sale back in early September and it's been a long, agrivating process. I keep checking the listing site and it has always shown as "Active" but on Friday changed to "Sale Pending". I spoke with my agent and she said she still hasn't received an accepted offer and she has been trying to call the selling agent but hasn't gotten a return call yet. We were the only offer the bank was considering about 2 weeks ago. Shouldn't I have received the accepted offer by now?

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The agent probably didn't put it pending until recently which they should have the minute they had submitted your offer to the bank. Sometimes agents leave them active for a while to generate leads off of it but its not an ethical practice and a sad way to do business. I bought a short sale myself and it took 3 months. If there are two loans on the property it could take twice as long. Find out who is negotiating the short sale and reach out to them whether its an attorneys office or another licensed agent doing it for the listing agent. If the listing agent is not returning calls then you need to call their broker.
2 votes Thank Flag Link Wed Jan 2, 2013
Purchasing a home via short sale is not at all an easy process. A lot will depend on how experienced the Listing Agent is. You can expect for most short sales to take at least 3-6 months from when the seller first contacts their mortgage lender(s). If they have a 1st and 2nd mortgage, they must get approval from both companies.

Short sales have so many ways in which they can go wrong. Many short sales simply never close after several weeks or months of work. This is a fact that every buyer needs to completely understand. If you are purchasing a property and must close by a certain time, then a short sale is probably not your best option.

A lot of the reasons for the fallout depend on the seller. To qualify for a short sale, the seller must submit all of their financial documentation AND prove that that currently have a financial hardship. Many sellers don’t submit the proper paperwork resulting in delays. Some sellers cannot demonstrate the required financial hardship. If a seller files Bankruptcy during the process, that will cause a delay. There are countless things that can and often will go wrong. Some can be overcome, some cannot. No Listing Agent, no matter how good they are, can control every action of a seller.

A short sale is VERY time consuming for all parties involved. A Buyer’s Agent has absolutely no control in the short sale process. They are solely dependent on the Listing Agent and the seller.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Wed Jan 2, 2013
Remember, back in September, when your Agent told you that you have to be PATIENT; that it could take 5 or 6 months, and maybe even a year?

I hope you are not making her life miserable.

The Bank has absolutely no obligation to hurry this up for you.
In fact, the Bank has no obligation to say YES!

You should go back to being patient; you were patient before, right?
1 vote Thank Flag Link Wed Jan 2, 2013
Why I say "it's been a long, aggravating process" is because we started looking at houses here and there after we had the offer in on the short sale(which was the agents idea btw) toward the end of October and we found 1 we liked... Our agent spoke with the bank and they told her they want to move the house quick and it was already in investor hands for approval and that we should have an accepted offer by the first week in November. Come the second week of November we found another house we liked and thought about putting an offer in but the bank then said that the investor approval was delayed but will 100% be done by the end of November so we can close by the end of the year. Now here we are in January and there has been literally "0" houses in the areas I want to live in that meet my criteria.

I have been very patient... but starting December 1st my rent went up by 40% (from $840 to $1175) because I am now month-to-month. So I'm not really in favor of being idle at this point.
Flag Wed Jan 2, 2013
Short Sales take time. You should have asked yourself the questions, "Is the amount of money I may save off market value worth the unknown amount of time I would have to wait?" This should have been explained to you via your agent, if you had one. I would say typically 60 days will go by before any hint of verbal acceptance comes and some can take upwards of 10 months or longer depending on the situation, the type of short sale program being attempted, and many many other variables. Once you have approval you typically have to close within 30 days or less so make sure you are staying on top of your means to purchase be it cash or financing.
0 votes Thank Flag Link Wed Jun 12, 2013
Banks will only consider one offer at a time. If they have been working on your offer for the last several weeks, then they are probably still working on your offer. "Pending" simply means that the property is pending approval from the bank and is not available for other offers at this time. For you that is a good thing. Ron is absolutely right, you have to sit and wait patiently. The banks have a process and they pass paperwork from one department to another and it just takes a lot of time to work through the process. I have closed hundreds of short sales and foreclosures. Some are quick and easy and others take up to a year.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
http://fredyancy.crye-leike.com
0 votes Thank Flag Link Wed Jan 2, 2013
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