Home Buying in 23185>Question Details

Jess.bramble…, Other/Just Looking in 23692

Short sale?

Asked by Jess.brambley@gmail.com, 23692 Sat May 15, 2010

My husband and i were approved for a FHA Plus loan and we put in an offer today on a short sell. The good part is our agent talked to the bank withthe short sell and found out the "magic number" they would take. So that is what we offered. (plus the closing cost) how long will it be before we hear anything. I have read serval articals but nothing that give you a time frame.

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If your agent is the Seller's agent, then that info should be there as soon as everyone knows it.
If you have a Buyer's agent, then that person will need to see what offer the owner picked to go to the bank.
If your offer is the only one, then the bank has an option to accept, counter, or just keep holding out for a better deal.
That is why it may take some time. This also assumes the agents know what they are doing.

I would suggest you set a period of time, and then see if your offer was accepted.
Also see if there are other offers, or if the bank is waiting.
Short Sales are not like regular purchases. We do not recommend them for buyers needing to close quickly.
Good luck!
Web Reference: http://TalleyHurstHomes.com
1 vote Thank Flag Link Sat May 15, 2010
Sorry, but no real way to say. Each bank is different. I've had an offer almost through the process and the bank 'realigned' the short sale department to another state. That added another month. I've seen it approved in two weeks and I've seen 6 months. They are getting much better at it now. Does the short sale involve more than one mortgage or loan? That will definitely affect the response time.

The main thing to remember is the bank is not obligated to agree to do a short sale. We have one now that the bank will not pay more than 1 percent of the sale price in closing costs on an FHA loan.

Congratulations on taking the step towards home ownership!
1 vote Thank Flag Link Sat May 15, 2010
Jess.bramble

A Short Sale is anything but short. The corporate wheel moves very slowly. Agents who are dealing with short sales are dealing with employees of the bank on the other end of the phone line who work 9-5 and have a lunch hour and breaks. There is no sense of urgency. If one piece of the package is missing when they pick it up to review, it is placed at the bottom of the stack and the clock begins ticking again.

The big challenge is if there is a second mortgage on the property as well. Especially if the second is with another bank or lender. Sometimes they refuse to cooperate and that can put on the brakes rather abruptly.

I definitely think that Frank has given you the best advice which is have a backup plan.

Good luck,

Brenda Feria
Real Living Eudailey Real Estate VA
Real Living at the Beach SC
0 votes Thank Flag Link Fri Sep 24, 2010
Assuming the seller has submitted their short sale paperwork and is apporoved- the new guideline is the bank has 10 days to let you know. The process though is anything but predictable and timely. If it's Bank of America-good luck-I'd follow Franks advice and take advantage of the market and buy a traditional reliable resale with a motivated seller. The rates are too good to pass up and you don't have the luxury of time.

Jim Mellen.
RE/MAX Peninsula at New Town REALTOR
Web Reference: http://www.JimMellen.com
0 votes Thank Flag Link Sun May 16, 2010
Short sale purchases are multifaceted, and they’re just not about what “magic number” the bank may or may not accept. But as other agents stated, it could take anywhere from 2 weeks or 6 months - it just all depends on many other factors in addition to the price.

One of the first questions I always insist on knowing for the benefit of my buyers is whether the seller meets the criteria in order to sell short. That is, has the seller fallen ill and incurred huge medical expenses lately, or did they involuntary lose their job or were they forced to take a pay cut? If a home owner does not meet any of the criteria, then the bank has no reason to accept the sale for less. Ask your agent for this information and if the seller’s agent is not willing to disclose this to you, then that is wrong and your agent has every legal right to demand this information – as well as the name of the seller’s lender. You’ll also want to know how experienced the seller’s agent is in short sales too!

If I were your agent, and I knew that you had to be out of a place in 2.5 months, I never would have suggested you present an offer on a short sale - especially when there are so many other great opportunities available to buyers today. But since you’re this far along, I would create a backup plan such as making arrangements to continue in a month-to-month lease if you’re renting. I always suggest to my buyers to plan to go into a month-to-month when considering bank owned properties as one just can never be certain how long it may or may not take.

Best of luck to you and be patient, as these type of purchases are not for the faint hearted.

Frank Biganski, Realtor
Reliance Realty, Inc.
0 votes Thank Flag Link Sun May 16, 2010
It is a single mortgage. I have no clue who the lender is on the mortgage. But the seller disclosed the neg. price between him and the bank. That is the price we offered. I hope it goes through rather quickly. My agent thinks it will but i am worried about that. We have to be moved in in 2.5 months.
0 votes Thank Flag Link Sat May 15, 2010
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