Home Buying in Winchester>Question Details

Kelly, Home Buyer in Winchester, VA

Under contract on a short sale since August, are we wasting our time? (see details below)

Asked by Kelly, Winchester, VA Wed Aug 25, 2010

We have been under contract on a short sale since April. The house had 2 mortgages on it. The first bank approved the sale quickly, the second bank didn't approve it until July and asked for a closing date of August 23. The closing did not take place because the second bank did not send pay off instructions. The second bank now wants proof of our financing, which our bank sent. We now have no clue when the sale will take place. Are we wasting our time, why did they wait so late in the game to ask for proof of financing?

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7
Janice Copeland’s answer
Hi Kelly,

Unfortunately with short sales, everyone is at the mercy of the banks. Although your particular instance sounds odd, with short sales there can be several delays. I would say this question should be directed to your realtor for his/her answer. Your realtor is hopefully receiving updates from a short sale negotiator-- either a 3rd party or the bank's negotiator. Good luck to you! With patience, short sales can be a great purchase option!!

Take care,
Janice Copeland, REALTOR
0 votes Thank Flag Link Thu Aug 26, 2010
Hi, Kelly.

Long wait times on short sales are generally the norm. I'm representing a buyer in a transaction that has a contract date of early Jan 2010 and not finished yet with only one lender. I know from experience that this case is not usual, but short sales can drag out.

If this is the house you really want, stick with it. I know I'm repeating comments from several other profesionals, but it's good advice. If you walk away, you just start over. No gain.
0 votes Thank Flag Link Thu Aug 26, 2010
That's the big issue with short sales! The longest I've waited with a buyer for a final acceptance was 16 weeks and she finally withdrew her offer and moved on to another property.
0 votes Thank Flag Link Thu Aug 26, 2010
The proof of financing I.E. pre-approval should have been sent in with the offer- way back in April or March whenever the Purchase Agreement was first submitted. Do you have a buyer's agent?
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Wed Aug 25, 2010
All good answers here. Hang in there, it sounds typical. Things can take longer than you like, but resolving the second is always the holdup. So much so that I ask that question first when showing a short sale.

Good luck to you and hope it happens soon!

Jay
Web Reference: http://TalleyHurstHomes.com
0 votes Thank Flag Link Wed Aug 25, 2010
No, it sounds to me as though you are very close to sealing this deal. Stay cool and on top of the details as best you can - I always counsel my buyers to continue to look when we are bidding on short sales, even after acceptance. But it sounds to me as though you've just bumped into more bungling and red tape with the bank. Not surprising to hear about the second bank asking for a quick close after taking a long time to approve. I've bumped into this myself - nothing, nothing, then surprise - approval and rush to close. Banks tend to want to clear their books end of month, so be prepared for the possibility of end of month urgency.

Good luck to you - hope you close soon!

Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Aug 25, 2010
Wish I could give you info... but it sounds like progress is being made. I'd hang in there if you like the house and the deal you've got.
0 votes Thank Flag Link Wed Aug 25, 2010
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