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SW, Home Buyer in 08080

Short sale - under seller contract - Southern NJ

Asked by SW, 08080 Tue Feb 26, 2013

We have a seller contract with $2K deposit. A tentative 4/19 settlement date. Our realtor says we came in at the end of the process, but everything I've read is saying that us signing the contract with the seller is the beginning of the process and could take 6 months before the bank even looks at the contract. Are the chances pretty good that the 4/19 date isn't going to happen.

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No two short sales are the same. Ask the REALTOR what they mean when they say "the end of the process". That could mean the short sale has been approved, it could mean that there was another contract and that fell through. It could mean a lot of things. Ask what that statement means in this case!!!
0 votes Thank Flag Link Wed Feb 27, 2013
This is a blog post what buyers should know about short sales

If a realtor truly believes they are at the end of the process you need to know what that means.. an updated approval or a verbal has been made and awaiting a written approval, or the seller has submitted the paperwork and they are waiting their approval to have a short sale(which means the short sale price still has to be approved by the bank)

Honestly, you need to find out
how many loans on the home? If more than one... then realtors should have an idea who the banks are and their procedures. Even if an attorney is handling the negotiations. Knowing what the steps are and familiarity of the banks procedures is important to both sellers and buyers. How many liens are very important and what type of liens are they. These questions and answers will greatly make a difference as to how long the short sale will take to be approved or not approved.

To get a short sale approved is not a problem, getting it approved and releasing all the liens is the real art of negotiations. A sellers obligations must come first and then the sales price you are offering becomes next.

Ask for info in writing....That way you know exactly what someone is talking about. when they say end of the process, or waiting for personal judgments to be cleared or the second mortgage was approved ans we waiting for the first mortgage to approve or the short sale is approved... You should get the approval letter within 2 days of their receipt of that letter.

Short Sales are usually good deals. Remember you are buying "as is"... Not a bad thing just make sure you get all your inspections completed and get the seller to provide you with a disclosure now if you are waiting to get your inspections until later.

Search foreclosures and short sale here: http://www.BuyNJShortSales.com

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0 votes Thank Flag Link Tue Feb 26, 2013
Thanks for the great advice.
Flag Wed Feb 27, 2013
Hi. I handle many short sales. In the beginning of the mortgage meltdown years when short sales were just beginning to become more common there were no set procedures and it could easily take 6 to 9 months for a home to make it all the way through the haphazard process. A big part of that was losing buyers who couldn't wait it out, so the process would have to start over. Check the dates of the blog posts, articles and comments that you've read. It has gotten better. Now, the major banks pretty much have it figured out and will lay out a timeline for each part of the sale process. Unfortunately that still does not guarantee a smooth ride. The most important factor is making sure that all paperwork is submitted exactly to the bank's specifications. If it is not, the timeline could be compromised. On average my short sales with the major banks are taking 45-120 days, depending upon many factors such as quality of paperwork submission, type of offer (cash vs. finance); number of mortgages, who owns the seller's mortgage and a myriad other factors. Your realtor's comment may mean that the seller had to apply for a loan modification, they've done that and were denied, and that the short sale has been sanctioned by the bank. If the bank has already ordered an appraisal then the process is well underway. Ask your realtor exactly what she means by that statement. Ask how many mortgages are on the property and be patient. If you are getting a great house at a great price then it's worth the wait!
Best wishes on a smooth transaction.
Kimberly Thomas, Broker-Associate
Brown & Pope Realtors
2105 Voorhees Town Center
Voorhees, NJ 08062
Email: kim@kimcanhelp.com
Web Reference: http://www.KimCanHelp.com
0 votes Thank Flag Link Tue Feb 26, 2013
You said "Our realtor". If the Realtor really is 'your realtor' then he/she is not working for the seller and should be able to answer your question since they would have done some due diligence prior to helping you submit an offer.

Ask your Realtor.
0 votes Thank Flag Link Tue Feb 26, 2013
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