The lender who owns the home is in control of when they answer any questions or send an agent out to do the BPO. Your agent and the listing agent can not move things forward at a faster pace. Most short sales take time. If you are still interested in this home continue to wait. It can take months to get to the finish line. In the meantime talk to your agent and continue to look at other possible homes. Your contarct to purchase this home may have a deadline posted for a response from the bank or a fixed closing date. Contact your agent and ask.
I have worked with successful short sales and UNsuccessful short sales. My advice is, hang in there, but keep searching with your agent.
I recently had a rough experience where I was working with a buyer client on a short sale (US Bank 1st mortgage and US Bank 2nd mortgage). We offered on the property in November, 2012. The BPO was done fairly quickly, then...nothing. The listing agent has closed many successful short sales and said that on this one our offer was gridlocked. Finally, by mid June, 2013 we had approval from the 2nd mortgage (US Bank), but not from the 1st. They needed to perform another BPO because the first BPO had expired. The BPO came back at the end of June at $60,000 higher than our offer price, btw we offered full list price. I was preparing my client for the uncertainty of short sales all along, but as you can imagine, she was still pretty bummed.
In conclusion, hang in there, but don't start buying new furniture quite yet :)
It must be very frustrating and even frightening for you. This is a very big purchase! If your agent is a licensed Realtor, his broker should be assisting you both through the process, training your agent and answering questions you have. Don't be afraid to request more guidance.
But a quick answer is, don't be surprised if the process takes 6-12 months. I usually don't encourage my buyers to put in offers on short sales- because they can come up short for everyone! There are many places where the process can break down- including you getting a loan! Foreclosures are a little bit better to work with, but there are still a lot of really nice houses available for good prices and more importantly- if you can get a good interest rate it will save you a lot!
God bless you,
Carolyn Jass, Realtor
Twin Cities Real Estate, Equal Housing Opportunity
To further make this a tough decision: the house has a property tax market value of $360k but was on the market as a private/regular for months listed at both $350k then $320k without a buyer. The listed short sale asking price was $298k and we offered $290k. Similar houses on same street have recently sold for ~$305k. The house need all new kitchen appliances and carpeting throughout and the basement is not finished. Is this really a deal?
Yes, unfortunately, the banks have not yet caught up with what they need to do to make this process go more smoothly. They are inundated with sometimes 10s of thousands of short sale requests in one week. Yet, nobody at these banks seems to see that they need to revamp how this process is handled. They are still working as they did when short sales were not that prevalent and do not have adequate employees to handle the deluge. I have a client with a short sale offer sitting on the table since May 17th and still no answer from the bank. Sheesh! It's only further complicated when the bank has "dumped the debt" and sold the mortgage. Good luck.
â€œA speaker at a short sale seminar I attended said 80 percent of all offers on short-sale listings do not result in a closed escrow. Combine that with an escrow of 90 days or more and the lack of cooperation from lenders and you can see why most practitioners will avoid representing buyers in short salesâ€
Quote from Stacey Moncrieff's Article in August Issue of Realtor Magazine Pg.6
Good luck! How far you want to go with this is directly related to your urgency and the actual value of the home to the buyer. If they are passionate, then sometimes it is worth hanging in there however, just know that these banks have STILL not set themselves up in a position where they effectively approve short sales in a timely manner. It's next to impossible sometimes.
Know this, keep calling and insisting that something be done. Make sure you are speaking to the right person (usually they hide behind about 2589 assistants!) You have to be relentless. Make sure the property is worth it.
Be patient, working with short sales and foreclosure can take weeks to even months. Every bank is different, however when you are working with a number of different banks it can even longer. If you love the home, my advice to you is to stick it out and wait. If you are in a bind and need to move sooner, then maybe you do need to bail out. I am not sure who you are working with, but I can tell you from experience that she may call them every day, but when you are working with a large company that is handling thousands of short sales and foreclosures it is very hard to speak to a specific person and get a correct answer. Once the ball starts rolling things should progress at a faster rate. If you are getting the home for a great price...be patient it will be worth it in the end. Good Luck to you!
It would depend on how much you like the house and how good of a deal you are getting. Once the BPO is ordered, they can get it within 24 hours...
Submitting offers on multiple homes and (possibly) having more than one of them accepted at the same time opens up an entire different can of worms....
If this is the home you absolutely love then you might try to wait it out. Otherwise you might want to consider canceling the purchase agreement and look for something else.