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Lawton, Home Buyer in 94030

We are in the process of buying a short sale house. The first lender is B of A. After two months of waiting, they countered offer a higher price to

Asked by Lawton, 94030 Wed Sep 2, 2009

us. First, we only increased our offer by $5. Two weeks later, we increased our offer to match to their counter offer. After waiting another two months, the negotiator said our file was in their desk and tehy would have the answer in one week. But now it's been two weeks, we haven't heard anything from them. Do you think they will approve this short sale after we accepted their counter offer?

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This is a significant problem with short sales. Frequently buyers become frustrated with the bureaucracy and move on. Bank of America is no stranger to this type of buyer behavior. When you run into short sale deals where the listing is advertised as bank-approved at a certain price, the likelihood is that there was a buyer in place who moved on. By the time the bank got around to approving the terms, they buyer was no longer in the picture.

Is it possible to suggest to Bank of America that you need an answer? You've been fair and you've done what Bank of America asked. One of the agents or the hired negotiator should be able to reach them. You've all come this far. Be the squeaky wheel. You can get someone to look at the file and push it forward - it will just take some serious persistence.

Apart from that, your choices are to really move on or continue the waiting game...

What you are going through sounds fairly typical. I'm sure that's no consolation, but maybe if the parties involved felt like your patience was waning they would start pushing for action.

Good luck to you!

Jason
McGuire Urban Bay
415-420-1143
jchapin@mcguire.com
1 vote Thank Flag Link Wed Sep 2, 2009
Is that a typo with the $5? Sounds like you insulted them and they put your offer at the bottom of the pile.
1 vote Thank Flag Link Wed Sep 2, 2009
Get an appraisal, from what I understand here in the Phoenix area, banks have to go with the appraised value, so in the end you might get it for what you bid.
0 votes Thank Flag Link Wed Sep 2, 2009
All you can do is stay after them Lawton. Have you looked into buying REOs?
0 votes Thank Flag Link Wed Sep 2, 2009
Lawton,

Welcome to the world of short sales. I've taken on a few of them and they are not for the faint of heart. The lenders aren't really party to your purchase contract and national statistics say less than 20% ever close.

For sure they are heart stoppers right up to closing. Many times lenders will insist as a condition of the sale the seller accept a deficiency judgement before closing. We've recently heard of one where the seller decided to change their mind, staying in the property until it was foreclosed... That buyer's deal just went up in smoke and it's not likely they would get much satisfaction attempting to sue for performance of a contract on a property in foreclosure either. Ultimately anything can happen and your agent should be advising you. I wish you the best of luck!

On a short sale listing I'm representing, we have been waiting for the lender to approve a very good offer from some qualified buyers. It's been many weeks and more calls, faxes and emails than I can count since we submitted the offer. Thank goodness I have some in's with the lender - but we're still waiting too!!! There are no 'easy' answers as there is nothing 'short' about short sales.

http://www.238Hartford.com

Mike Ackerman
Zephyr Real Estate
4040 24th Street, San Francisco, CA 94114
415-695-2715 mail to: ABZ@ZephyrSF.com
0 votes Thank Flag Link Wed Sep 2, 2009
Hi Ls,

The statistics show that only 20% of short sales actually close escrow for a number of reasons. When the bank will approve your sale is hard to say. And then the seller can always change their mind and decide not to sell. I heard a story today in our sales meeting of a short sale that after the buyers loan had already funded (escrow usually closes the next day after funding) the bank came back and asked for an additional 40K even though the bank had already agreed to other terms in an email. I would say that nothing is certain until you have the deed recorded. Every short sale has a different story and some of them are good. Hang in there. Good luck!

Best always,
Lorraine

---------------------------
Lorraine Meier
DRE#01439005
Zephyr Real Estate
318 Brannan
S.F. 94107
cityrealtorsf@gmail.com
415.596.9362
0 votes Thank Flag Link Wed Sep 2, 2009
It's a typo error. We increased the offer by $5K from our original offer after we got the counter offer from the negotiator.
0 votes Thank Flag Link Wed Sep 2, 2009
The banks have no time table. I had a client by a B of A short sale. We ratified the contract in April, we opened escrow in July.
The bank would tell us, expect to hear from us today, nothing. Good news later today, nothing. Finally I realized that whatever day they accepted it would be the proverbial today they kept mentioning. Today to them is not the current 24 hour period it is whenever they get around to it.
Good luck and hope thay don't comeback and ask for another ten bucks.
0 votes Thank Flag Link Wed Sep 2, 2009
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
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