From what you are telling us you seem to be in the final stages. What is really important is are you preapproved? Did you get a DU preapproval? I have been a Fha lender for 20 years if I can be of assistance, please feel free to call me.
However, if the counter offer was from the lender, even though you accepted, this is only to get it to the next stage... there are a number of reviewers that will look at this file as it moves through towards shortsale and in the very end the investor at the end of the line can unapprove a previously approved fee on the settlement statement and again it will come back to the buyer to cover the cost. This can happen even on the day of closing. I just had a short sale that was fully approved and on the day of closing, the closer said that the final hud was not going to get approved because the investor would not pay a certain fee. After the buyer accepted that, there was another fee that was not accepted... this went on 4 times before we got final hud approval. If you look at the approval letter, it will usually have a line that this is an approval but still requires final hud approval prior to closing.
On to your second question... if fha does not agree with the bpo... this is 2 different things. The bpo is for the lender to determine market value and use that to figure out how much they will net (loose) if they go with your offer amount less costs. FHA is (I am assuming) your type of loan and they will perform their own appraisal after when you get your approval and open escrow. They will then be determining if the property is worth what you are offering. The bpo and fha will not be sharing reports. Happy to assist.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
By now, since you are getting counter offer from the short sale lenders, the listing agent (or whoever is negotiating the short sale for the sellers) should have direct contact with the short sale lender's negotiator. The process should be really fast.
On the other hand, depending on how the short sale approval reads, by accepting the counter offer, you might be able to go directly into escrow.
Really depends on what the process is and how the short sale (or counter) reads.
Check with your Realtor, he/she should be able to advise you on that.
On your second question, if the appraisal comes in short. you will have to present that appraisal report to the short sale lender and re-negotiate. It might be a problem, especially if you are getting credit back (meaing the purchase price can be inflated).
How long before you get an approval? Truth isâ€¦we all wish that we could answer your question. Not only for you but for everyone who is buying a short sale property. I just closed one for a buyer client. The offer was written last November. Approval from the lender came in June and we closed in 30 days. That is not an unusual story. Many go more quickly. Some take even longer.
Your lender will do an appraisal for your FHA loan. If the amount of the appraisal is lower than the banks approval amount, more negotiation will have to be done.
Good luck on a nerve wracking process.
IF bank accepted the short sale they would return an executed agreement
FHA does their own appraisal HAS nothing to do with the lender BPO.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors