I think the banks hold back on anything in writing hoping that the next offer in will be the "golden one"....You know the next offer with the purchase price $50k higher....and then they woke up!!
Mike is very knowledgable and an expert in that county. You won't get anythiing in writing from the bank until right before the close of escrow because they are going to wait and see if anything better comes in. If you want to buy short sale house get an agent like Mike who knows the process and the value of the properties. He can apply the correct pressure at the correct points on the listing agent and supply the bank with the data that bankers love. Eventually and it really is eventually, everyone might see things your way and the property is worth what you are willing to pay for it and they won't do any better if the forclose and sell as na REO.
I am actually the buyer in this case. I have already made a formal offer thru the seller agents to the bank for their â€œsupposedly already approvedâ€ short sale. They came back after a while and said the bank rejected the offer â€œverballyâ€. I tell them that doesnâ€™t make any sense, I filled out 10+ papers and went thru the whole process for making the offer and then the bank just verbally responded? You canâ€™t do nothing in this country without something written being exchanged, and now all of sudden everything is verbal and so relaxed? The seller and his agents act very erratically and make contradictory statements. So now they say if you want to make another offer you need to go thru all those 10+ paper and formal process again and I tell them since everything is so informal and verbal, Iâ€™ll just make a â€œverbalâ€ offer, how about that? But thatâ€™s a no, no. Thatâ€™s why I asked about the process, in particular bankâ€™s response to a formal offer. I am not sure if something is going on behind the scenes with them and I canâ€™t quite put my finger on it or things are truly this unbalanced.
They are very tricky when it comes to "approval". Some will give you a very generic letter not naming the subject property as they use this as a defense to take a better offer up until the last minute of the deal. Here in California they are going to eventually give instructions to escrow for pay-off of the loan. When that happens get in their and close the puppy!! Don't be surprised, however, if the Seller finds an unsecured note for a portion or all of the forgived loan amount!! in other words, don't order the moving trucks, order any appliances or furniture or change your mailing address at the post office UNTIL you here "Your on Record!". So work out an arrangement with the Seller for occupancy (if your the listing agent) or if the Buyer, be ready to give on this issue. Many of these Sellers are moving out anyway or have already. So this might be a mute point! Good luck.