The article linked below tells you a little about the patience and risk tolerance required from a buyer in a short sale situation. My opinion of short sales for buyers? High Risk, Low Reward.
To sum up the article. 1. Buyer waits a long time for the bank to anything. 2. Buyer has to sign banks counteroffer that is full of anti-consumer clauses. 3. Buyer has to pay nearly full market value. (discount, if any is much tinier than you think it will be) 4. Bank can cancel the sale at any time up until close of escrow, with no consequence to the bank and no compensation to the buyer
In my not so humble opinion ( imnsho,) ) The reasons why the failure is above 80% are:
1. Many sellers don't qualify, they think that being upside down and hating it is enough.
You must also be undergoing hardship not of your own making. such as illness, unemployment or natural disaster. Stovall gives a few other reasons.
2. Prospective buyers think that these are bargains, so very few buyers offer close to full market value. The banks will not approve sales at huge discounts, tiny discounts: yes.
3. The wait, 4. the paperwork, the wait 5. the anti-buyer addenda, the long wait 6. the uncertainty of the sale, still waiting 7. the perception, if not a reality, of bad faith dealing by the bank loss mitigation managers.
.I linked below to an article in Broker Agent News by Steve Stovall. He gives a pretty good description of the short sale process, seller, property, paperwork, and buyer requirements
I am with Dot on this one... I have not seen nor heard about this being an option AFTER the bank has made a formal, on paper acceptance of an offer. However, if what you have is actually the seller's (property owner's) acceptance and the negotiator signing off on the deal but don't have the lender's formal acceptance in writing then, yes, they can continue soliciting other bids until they are in contract.
Of course, generally speaking, most of the major changes in Real Estate transaction paper work in California tends to originate in Northern California and then migrates down through the state. So, this could just be something that is beginning to happen in your neck of the woods, but has not, as of yet, started to filter to mine.
Read over the documents you have received from the seller's agent to see if there is indeed anything hidden in fine or not so fine print.
In my experience, however, once I received the payoff statement from the lender, as long as they received the amount they agreed to by the date that they specified, things moved swiftly and smoothly to a successful conclusion.
Good luck with your transaction. I will hold good thoughts for you.
Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922
I don't see how the bank could have the right to auction the house off before they foreclose on the property. Do you have a Realtor representing you? This doesn't sound right at all!