Jay Rubin, Home Owner in Baltimore, MD

We have a Ratified Contract on a Short Sale house.

Asked by Jay Rubin, Baltimore, MD Sat Nov 10, 2012

We have a Ratified Contract on a Second Home. The house is a Short Sale. We are the fourth set of buyers to have a Ratified Contract on the house since it was listed February 2012. The other three set of buyers walked. On one of these sets of buyers, the Sellers received Short Sale approval. Our agreed-to sales price is right at the current State of Maryland appraisal for the house. the Sellers are both realtors and own many houses they rent. We gave them two months to obtain Short Sale approval. It s now week four. Are the odds in our favor that we will be the purchasers? We ARE patient and LOVE the house/Chesapeake Bay front property. Thanks

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In all honesty their is no way of knowing how long the approval will take. I can tell you in my experience dealing with banks on short sales for both buyers and sellers to expect atleast 60 days from the tme the offer is submitted for the approval letter. Really it depends on the bank they are dealing with. Do you know who the bank is that they are negotiating with?
0 votes Thank Flag Link Sun Nov 11, 2012
Hi Jay,

A lot of factors come into play as to why short sales do not work out and buyers move on that we could discuss for years to come.

The appraised price and the price the bank may want to selll house at are two different things.

The biggest thing is to exercise patient as you noted and due your due diligence.

good luck
0 votes Thank Flag Link Sat Nov 10, 2012
Doing many Short Sale transactions through-out Maryland, I can tell you that it really comes down to the Short Sale negotiator working on behalf of both you and the Sellers to get this property approved through the lender. We typically get Bank Approval and a Hud-1 within 90 days. If it took that long before, there is certainly more to the story. Your aggressive agent should be on top of this with the Sellers agent to find out exactly where the process is as each week passes.
0 votes Thank Flag Link Sat Nov 10, 2012
This isn't "rocket science." Putting your agent to work finding out all of the information possible from the seller's agent. Sounds like there's much more to the story that meets the eye. You should be questioning this transaction but for any one to comment from afar with the information provided, would be pure "guesswork."

By getting the facts, you may be able to come to your own good conclusion! A big issue here would be to determine why each of the previous sales didn't work out. Was it because of the seller, the buyers, the lender, or circumstances. You should be able to find out!

Good luck,

Bill
0 votes Thank Flag Link Sat Nov 10, 2012
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