Home Buying in 22015>Question Details

Cheshire, Home Buyer in 22015

Suntrust indicated they no longer accept short sales with "closing date set within XX days of approval", they want an actual date. Is this?

Asked by Cheshire, 22015 Wed Jul 7, 2010

new? I am the buyer and the sellers negotiator just sent this, claiming suntrust needs us to addend the contract and list a specific closing date. We were first told to just set the closing date to 30 days from suntrust's approval, so we did. Now they want a date? I thought leaving it open allowed suntrust to control the date. We still have no indication when they will approve, but the seller indicated the appraiser conducted the BPO. The seller is asking us to a closing date with an addendum. Is this common? I originally was told by the Suntrust short sale phone person to leave the date open because no one knows when approval would happen.

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Jason Stevens’ answer
Chesire _ I agree with Thom. Being involved with many Short Sales something doesn't sound right. If they counter $25K over market value then donn't hold your breath any longer waiting for a response to your counter. Send them in writing that your offer is no longer valid, and I suggest you move on. There are many other Short Sales., REO, and seller owned property's available that won't give you the run around. Happy House hunting..good luck..oh and get a good Realtor if you don't already have one...
0 votes Thank Flag Link Wed Aug 11, 2010
Cheshire -

Help me understand.... Do you have an agent respresenting YOU ? It doesn't sound like it. If you are representing yourself, or if you are using the Listing Agent, this transaction will likely never close at terms you want. The "negotiator" is responsible to the SELLER and actually should have no communication with you at all unless you are representing yourself.

I'll say it again, this sounds shady. Is this the ONLY property you want to buy - is there NOTHING else that you want? I would suggest hiring a REALTOR (the seller pays for it), continuing to look for other properties, and being sure you have every "i" dotted and "t" crossed in your current contract.

If it walks like a duck, smells like a duck, quacks like a duck - it's a duck - be careful.

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage. It is never beneficial to the Seller or to the Buyer and it is only beneficial to the Agent.
888-391-5245 Direct Cell
thom@thomcolby.com
http://www.thomcolbyproperties.com
0 votes Thank Flag Link Wed Aug 11, 2010
Cheshire here,

As an upate, on 7/20/10 the seller's negotiator and the Suntrust negotiator in thier private discussions determined that 8/31/10 would be a good target date. This means Suntrust must approve by 8/11 to allow for 20 days for closing. On 7/20/10 I agreed (to keep things moving) to add an addendum to set a close at 8/31/10, but left an opening to say if the date was not met we revert back to a general close within 30 days of approval, just in case.

As soon as I signed the addendum, the Suntrust negotiator countered for 25K over the contract offer, way above market value. I responded with a counter equal to the highest sales price in the previous six months in the same condo building. It was still lower than the Suntrust counter, but I could back up the price with comps. Anyway, I sent my counter (with comparative comps) to the seller's negotiator to discuss with the Suntrust negotiator. Three weeks later 8/11/10, no response from Suntrust negotiator to the counter. Am I glad I added contract language to revert back to 30 days of approval if the date cannot be met!

As a buyer, this process has been really strange:
1. I cannot contact the seller agent (they send back rude or vague responses, if at all).
2. I am paying the seller negotiator fee, even though I cannot contact this person for updates, direct thier
activities, etc.
3. The Suntrust negotiator counters with a price higher than current sales.
4. I have to pull all the comps to justify the offer price (what is the negotiator I am paying for doing)
5. Thought with a short sale you get a decent price, but end up waiting six months, just to try to figure out
the market value to pay at the end of the process?

Anyway, still waiting for a response to my counter from the Suntrust negotiator as of 8/31/10


Already
0 votes Thank Flag Link Tue Aug 10, 2010
Cheshire,

I agree with Michael's answer below. Something just doesn't seem right. 100% of my business for the past 3 years has been short sales as a LIsting Agent. I enjoy them because, I'm helping people. I also work as a 3rd party negotiator but I am a licensed RE Broker which is required in my State of California and the agents pay me from their commission not as an added expense to the Buyer!

Back to your question, Tell your agent (hopefully not the same person as the Listing Agent) to show you the communication from Suntrust - on Suntrust Letterhead ("Show me the money") If Suntrust said it, they should have no problem proving it. If it's not true - it will show through right away.

At the end of teh day, if you have a contract signed by btoh you the buyer, and the seller then the bank can either approve or deny the short sale. Remember, Suntrust is NOT a party to the contract - only the buyer and seller are !

Best of luck,

Thom Colby
Broker / Owner
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We never double-end a transaction at our brokerage.
0 votes Thank Flag Link Wed Jul 7, 2010
Hi Cheshire,

You're right, usually the closing date is left open until the final stages of a short sale so addendums are not continually extending the date.

A couple of things bother me about your question.

How long has it been since the offer was submitted to Suntrust? If a BPO was completed by the lender it sounds like some progress has been made.

Moreover, it sounds like your seller is using a 3rd party negotiator, which I am always wary of; many times they are unlicensed entities who don't have the homeowners best interest at the top of their priority list.

Can you provide some more details?
0 votes Thank Flag Link Wed Jul 7, 2010
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