Home Buying in Whittier>Question Details

Futuremrsoro…, Home Buyer in Whittier, CA

Short sale offer submitted, seller accepted and signed, offer is at the bank, loan application signed...let the waiting begin! Any good advice?

Asked by Futuremrsorozco, Whittier, CA Tue Apr 12, 2011

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Make sure the listing agent CUTS OFF ALL ACCESS TO THE PROPERTY NOW! It is imperative that the listing agent or your agent meet the banks' appraiser at the property with their own research for comps in hand. Your agent or the listing agent NEEEDS to know the inside & out of all comparable sales.

Another option: Have you lender order your own appraisal right now. Forget the bank & their valuations. Get your own done & have the listing agent submit that! This way you know what fair market value is NOW rather than in 2months.

Find out if there are any EQUITY LOAN 2nds or cashed out equity on a 1st lien. This WILL make a difference in the end & it could mean that you'll need to contribute with cash for the 2nd or 1st lien holder to release the lien paid in full to the seller.

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
Short Sale Expert
1 vote Thank Flag Link Tue Apr 12, 2011
Yes, push to get conditional loan approval from your lender prior to getting the short sale approval letter. Watch the interest rates. Don't do anything that effects your credit score. Don't change jobs.

Hopefully you have got a good one. Some questions to ask your Realtor, in case you don't already know the answers, would be:

One loan or two?
If two, are they different lenders?
Who is the note holder/s?
Is there a notice of default or trustee sale date scheduled?
If so, what is the policy of the note holder concerning postponement?
What is market value for the property?
Is your offer within 5 to 8% plus or minus of market value?

The answers to some of these basic questions can indicate the likely hood of success.

And of course as others have said patience.

Good Luck!
1 vote Thank Flag Link Tue Apr 12, 2011
In addition to patience just be aware that short sales are wildly inconsistent. I've had one past client somehow managed to get her home through a short sale process in about 60 days. That was the one and only "success" I've been a party to. We've had 5 other families all give up after 5-6 months and go buy a foreclosed home or regular resale home that could close in a timely manner.

Short sales can be great bargains but tough to wait out while interest rates increase or other perfect homes for you are listed and sold.

We're lenders, not real estate agents, so that's the view from my vantage point.
1 vote Thank Flag Link Tue Apr 12, 2011
If you are a bit concerned about being approved for this, make it personal. Take a family picture, then describe your thoughts about the house. Personal thoughts of why you want "This house", why it would be such a great thing if YOU were the one to get this house. Find a way to get your personal story to the lender. This hopefully will make it a bit more "Real" the the lending officer that is handling your house and they will go a bit faster for you.

Good luck and remember, there is always a perfect house waiting just for you.
0 votes Thank Flag Link Fri Apr 15, 2011
On a short sale having the seller accept you offer means nothing. What you need to move forward is the lender that currently has a lien on the property to accept your offer. Sometimes there are two lenders. One on the first position loan and the other on the second. Good luck.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Apr 12, 2011
Heck I don't think I can offer up anything that hasn't already been said. But instead of a six month cruise I'd use the time to do some surgical due diligence. I'm assuming you've already been down that road before you submitted your offer but it doesn't hurt to keep your finger on the pulse.
0 votes Thank Flag Link Tue Apr 12, 2011
Go into hibernation for a few months, then come out ready to jump through hoops to get the deal done fast. So do have all your ducks in a row and ready to go because once the bank decided to approve the SS they will usually have a bad ass attitude that if you don't close within their authorized time limit they will recind the SS approval - and sometimes they actually mean it...

BTW, awesome avatar picture!
0 votes Thank Flag Link Tue Apr 12, 2011
Don’t get your hopes up until the bank gives you their BPO! Hate to be so straight forward but without knowing what the BPO price and what the bank/lender will agree to—all offers are just a “shot in the dark!” Wait until you know the Approved Price and then submit your loan. Of course, this is just my humble opinion and your situation could be very different your success will also depend on who the lender is and how reasonable the are.
0 votes Thank Flag Link Tue Apr 12, 2011
If you are confident in the process and patient you will most likely be just fine. Make sure to have your agent keep up on potential trustee sale dates and get them postponed if they are scheduled. Other than that you may need to pay more than the accepted offer based on a brokers opinion of the value and how the bank reacts to that. The sellers agent has to do an outstanding job of submission on all the sellers documents and it's the #1 cause of delay in a short sale. Don't think that it is the loan processor delaying the process all of the time. Keep in contact with the sellers agent and make sure all required documents are being submitted on time. Wish you well
0 votes Thank Flag Link Tue Apr 12, 2011
Patience. Ask for regular updates and be ready to stay in the game. Communicate any concerns with your agent so that they may address them. Keep an eye on your interest rates, ask you lender to give you a heads up if they see any changes which may affect you. Also, keep in close contact with your lender regarding any changes to your job, finances etc. You don't want to mess with that.

Good luck on getting seller acceptance!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue Apr 12, 2011
Have your agent contact the listing agent to get regular updates.
In the meantime, you have time to take a 6-month cruise.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Apr 12, 2011
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