Home Buying in Chelsea>Question Details

Johngreenink, Home Buyer in Allston, MA

Waiting for an answer on a short sale home.

Asked by Johngreenink, Allston, MA Thu Sep 17, 2009

I have put in a bid on a multifamily house in Chelsea, MA, that has been on the market as a short sale for over a year. The bid is very close to the asking price. I've now waited for two months with no reply. I know that this property can't sit on the market indefinitely, what could possibly be the hold up, and what can I do to make this move faster? I know already that short sales can take a while, but I was hoping to close on this before the end of November - is there any chance of that happening here?

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Short Sales are quite unpredictable without bank approval letter.

Just because the bid was close to asking price does not mean it is a price that the bank would accept unless there was a stated bank approval already in hand.

There are a lot of elements that factor into a bank's willingness to approve of a short sale, not the least of which may be how the seller is expecting to make up the difference (between the sale of the house the balance of the loan.)

If you are on a time schedule ... an "unknown" short sale may not be the right purchase situation for you. Buying a short sale requires patience.
Web Reference: http://www.commonmoves.com
0 votes Thank Flag Link Thu Sep 17, 2009
Hi - an updated to those who answered - the property for which I'd put in a bid was rather mysteriously taken under agreement this weekend with a different buyer. The property is now off the market and my two months waiting was pretty much for nothing. My realtor sent a strongly worded email to the listing agent/representative, but this doesn't accomplish anything.
Is it possible that you can put in a bid, get no response for 2 months, and then be told that the property has sold? I'm just shocked that we weren't asked about our bid and our willingness to change the bid. Does this happen regularly?
0 votes Thank Flag Link Tue Sep 29, 2009
The bank approval I was talking about is a letter from the SELLER'S bank stating that there is an approved price for the short sale. Without that, you don't know where the bank stands on this matter and that is where the majority of the delay comes from.

Mr. Garza had a great suggestion ... find out from the listing agent where a BPO happened and, if possible, what the result of that was and what is the time table the bank estimates after a BPO ... they should have some time table that may be longer than you want, but they should be able to commit to some sort of expectations.

Good luck!
0 votes Thank Flag Link Fri Sep 18, 2009
Thank you all so much for your responses, they are very helpful.

I have a pre-aproval from my bank, but there isn't an aproval from the property's bank. To my knowledge, there was only one other bid on the house. My realtor and I have expressed flexibility in pricing.

I have been renting in the Boston area for about 5 years, so waiting a few more months wouldn't hurt me (thankfully). My bigger concern is that I wanted to be eligible for the first-time home buyer's tax credit, and of course that eligibility ends on November 30th. Have there been any rumblings from congress about an extension of this program?
0 votes Thank Flag Link Fri Sep 18, 2009
Question 1: Has the seller signed and accepted your offer, in other words do you have an accepted offer by the seller? In the short sale they have to do that. If yes, then how far is the seller in the short sale?
If not, you have no deal so far.
Your buyer's agent ( I assume you have a buyer's agent) should have the answers to those questions and a few more answers that you will need in order for your question to be answered.
Good luck.
Yannis
0 votes Thank Flag Link Thu Sep 17, 2009
I agree with Greer. Short sales require patience and not for the buyers that want a quick close. NOT

What buyers don't understand is 'your offer" is not the only one they are dealing with in this economy. They have 100's and sometimes more than that. I have had some that took 6-7 months for an approval.
0 votes Thank Flag Link Thu Sep 17, 2009
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