Everything you said seems accurate. With this new information, the seller could very well end up losing the home to foreclosure. Make sure to run the situation by your lender if you are getting a loan. That could be a bigger issue than the approval letter.
Keller Williams Realty
My partner and I have negotiatied about 300 short sales and have come across this issue many times. Luckily, Chase is one of the better banks when it comes to negotiating short sales. By submitting the addendum to reduce the purchase price, along with the repair bids will not completely shut down the short sale. Depending on your negotiator, what would happen is they would re-review the file with the new purchase price and repair bids, then come back with either a counter price, a new approval, or just let you know that they will not accept the new price and you will need to purchase it at the original approval price. The only way that the file would be shut down is if they did not approve a postponement for the foreclosure date (which normally they do when they are working on a short sale and have a buyer in place).
If you have any other questions just let me know!
Yes, they are correct that the process "may" start over. But that doesn't mean it "will" start over. Ultimately it sounds like the listing agent and negotiator just doesn't want to do more work than they need.
As for your agent, they should be demanding your best interest in the deal. Your the one paying for the property.
It sounds like the listing agent and negotiator need to do their jobs properly and get an extension on the pending foreclosure sale so that proper terms of the purchase can be worked out.
Have your agent find out if the foreclosure sale has been postponed before and if so how many times. It's not uncommon for sales to get postponed multiple times over the course of a year while a house is in a distressed situation. A good negotiator or short sale listing agent should have a real estate attorney who can simply write a letter that will allow for postponing a foreclosure sale.
You've got a tricky situation here and need the advice of an agent who is working for you. Dual agency (listing broker representing the seller) may not be the best for this scenario.
Robert L. Boerner
We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
In our experience, Camille has the bases covered.
Make sure the agents are not deciding the process, that belongs to Chase and hence the need for a skilled negotiator. A good short sale negotiator is so valuable when it comes to this type of situation.
Best of luck,
Mark & Kari Shea
Shea Real Estate
National Association of Realtors
CA BRE License 01713506