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?
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.
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.
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?
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.
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.