Home Buying in Seven Hills>Question Details

Merm, Home Buyer in Aurora, CO

Short sale. How long must we wait?

Asked by Merm, Aurora, CO Fri Apr 11, 2008

We got a verbal acceptance on our offer from the bank. But still no paperwork. It seems the file goes from desk to desk. It's been about six weeks now. Thinking about moving on.

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Merm: The time-frame of every short sale (pre-foreclosure/ the Lender taking less than what is owed on a loan or loans)-----is different with every Lender. Since there is an abundance of short sales in the state-----the Lenders are backed up. Normal time 2-4 months. I have seen up to 6 months.
0 votes Thank Flag Link Sat Apr 12, 2008
I feel the exact same way as Terrence. I submitted an offer which was accepted the same week last sept 2009. i am still waiting on the banks acceptance. I have decided to wait as I can save some more for the down payment. I few things i have learned is to make sure the paperwork in in order from the buyer and seller and make sure your offer is at least 85% of the current worth of the house
0 votes Thank Flag Link Tue Jun 22, 2010
Yea, I am in the same situation. We submitted our offer on Sep 23rd 2009 and still haven't heard anything, everyday it's the standard answer of "yea, they are still working on it", so now I have withdrawn my contract and moved on to another house. I guess at the end of the day it is what it is. But the only thing that drives me insane is, evreryone knows the state of our economy and everyone knows the will lose, so why not cut your losses early? Why wait? And obviously no one can answer that, every agent wants to put their 2 cents in and tell us how the process works and blah blah. Anyone buying a house knows the process trust me. And then agents tell you (on here and in person) that we are the people who are responsible for this economy, because everyone got a loan easy without any documentation and so on so forth, but weren't you the agent who sold the house to begin with? I mean lenders can give anyone a loan but at the end of the day you need an agent no matter what. So stop with all your "BS" speach and take responsiblity for your own actions.. Well my advice for a short sale is, if you LOVE the house then it's worth the wait but if you don't move on till you find one. Good luck everyone. Terence
0 votes Thank Flag Link Tue Jan 12, 2010
I'm representing a seller of a short sale, and I can understand your frustration. We submitted our offer 8-14 and are still waiting for a yes/no.

Unfortunately, every bank is different. It's likely the folks in loss mitigation are experiencing a quadrupled workload, and are simply backed up.

Hopefully, your agent is (politely) calling the negotiator daily for a possible update on paperwork. I would suggest the agent propose the neg. email the paperwork versus fax. Sometimes the larger companies have a history of "losing" faxed documents...

Best of luck, and if you're getting a good deal on the property, try and wait it out, it will be worth it. Both agents have probably worked on the deal for many hours, and want the deal to go through just as badly as you do.
0 votes Thank Flag Link Fri Sep 5, 2008
I am in the same situation. I've been waiting since late july.. still no paperwork. the worst is the seller's realtor isnt very helpful. He ignored my agent's emails, phone calls.....etc. very difficult to deal with. Along with his misconduct, I am ready to fill complaint with the state when this contract is over.
0 votes Thank Flag Link Fri Sep 5, 2008
Thanks to all who answered and for the great advice! So, we haven't even been waiting two months yet. And I can't even imagine going six months! I think I will look around, and if I see something nicer, put an offer in and at least I'll know we'll be likely to close on that in 30 days.
0 votes Thank Flag Link Sun Apr 13, 2008
Sorry, Merm. You sounded just like my client. This is a very tough position for a renter who's month-to-month and waiting with no end in sight.

Perhaps you can look at houses that are either REO (bank owned) or even a 'regular - not short sale or notice of default' house that slightly above your price range. . Both can close much faster than short sale. This is a great time to negotiate. You will never know what the bank or the regular owner will accept in this market.

Vassi is right - make sure you officially cancel the contract if you want to move on.

But who knows, maybe you will hear something on Monday.

Good Luck!
Sylvia
0 votes Thank Flag Link Sat Apr 12, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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You have to keep calling or they just forget about you. If you want the home don't give up. Are you working with a Realtor?
0 votes Thank Flag Link Sat Apr 12, 2008
Merm, if you decide to place an offer on another property, you should further protect yourself by including a "cancellation of prior contract" rider to your contract. Good Luck.
Web Reference: http://www.VassiSaviano.com
0 votes Thank Flag Link Sat Apr 12, 2008
Thanks for your response, Sylvia. My realtor says we can move on anytime, that we have nothing in writing from the bank. But we've looked for a long time and rarely have we seen anything that was to our liking (in our price range anyway). So, we all (including the realtor, I'm sure) don't want to have to do that again. Still, although we are living month-to-month in our rental, I would like to be settled in....yesterday already!
0 votes Thank Flag Link Sat Apr 12, 2008
With the short sale, you almost have to call every single day to make sure things are moving along; and once they accept your offer in writng, they want you to close quickly.

I would go ahead and continue to look for other properties while this is still going on.

If it comes through and you still want the property , great. If not, and if you are protected by a short sale addendum saying that the contract is really not in place unless there is a lender written approval by a prescribed time frame and the lender approved within that certain time period (which does not seem possible from what I read), then you should be able to cancel the contract and go on with the new house you found.

Either way, read your contract carefully to make sure you can get out without losing anything before procedding - eveything is in the fine print. .

Sylvia
0 votes Thank Flag Link Fri Apr 11, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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