Home Buying in 02780>Question Details

M, Home Buyer in 02780

Should I have a say in the closing date on a short sale?

Asked by M, 02780 Mon May 5, 2008

The home I'm purchasing is a short sale. My agent has told me repeatedly that because the seller's bank is involved that I have absolutely no say in when the closing date will be and it is entirely up to their bank to set the date. This doesn't seem fair. Is my agent telling me the truth?

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Jeffrey Smith’s answer
To further complicate that answer, the bank is under no obligation to accept anything less than what is owed to them. If you are entering into and agreement to buy a property in which the seller does not have sufficient funds to close, there is no guarantee the seller will be able to perform. There are other risks to consider as well, such as rate lock expirations and rate increases. I have handled several short sales in mass and not one has closed in less then 60 days. There are benefits to short sales, but the transaction is much less stressfull if you know the risks going into it.
2 votes Thank Flag Link Tue May 20, 2008
I sell quite a few short sales and believe me the bank pretty much has all the say. It doesn't seem fair but it is often true. In many cases, the bank will come bank with an answer and will require the Buyer to close within two weeks. Short sales can be a good deal but you have to be patient and accept the things you cannot control.
2 votes Thank Flag Link Tue May 20, 2008
Yes, The truth hurts sometimes! Short sales are notorious for taking 30-60 days to close and you are at the mercy of the lein holder. I think it is in their job description to drag their feet and test your patience!!! If it's the house you really want and you and your agent are willing to jump through all the short sale circus hoops--it will be worth it!!!!! Hang in there!
2 votes Thank Flag Link Mon May 5, 2008
Your Agent is partially correct. You need approval from the bank or lender involved for the short sale and the acceptance of your offer before anything more can happen. You can howerer state in your offer that you want to close X amount of days from the the effective date of the contract , which should stipulate as the date you receive notice of approval.
2 votes Thank Flag Link Mon May 5, 2008
Your agent could be correct depending on the circumstances. Usually, there is a closing date set in the Purchase and Sales. It is not common for the agreement to continue forever. I would recommend having an attorney review the P&S to determine your rights as a buyer. The waiting game is often the price to pay for dealing with a property involving an bank on the seller's side, whether it be a short sale or an REO.
2 votes Thank Flag Link Mon May 5, 2008
This is correct. Short sales can take up to 2 months to close sometimes longer!
It important to know that this process can take less time if you know the right people to talk to.
My team of Short Sale Specialist have received bank approval in under 2 weeks!

1 vote Thank Flag Link Thu Jul 24, 2008
I have been on the listing side of short sales and closed on several. The sellers bank has the buyers at its mercy. Whatever the sellers lender says.. goes. We don't like it. It just "is"
1 vote Thank Flag Link Wed Jul 23, 2008
Hi M,
Yes, your agent is correct. When it comes to short sales, Patients reaps rewards.
1 vote Thank Flag Link Mon May 5, 2008
You mean to tell me that you wan't a say in how and when you are going to spend hundreds of thousands of dollars?! Ha, ha! Dear sir/ma'am, my sides are splitting.
Web Reference: http://www.bowenboston.com
0 votes Thank Flag Link Thu Jul 24, 2008
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