Century 21 Flag Agency, Inc.
An alternative for you might be to pursue this property via a short-paper transaction.
Please feel free to PM me for more details.
So the short answer is.....if you want to be sure to qualify, move on my friend and find yourself a great traditional deal - they are out there!
Unwavering Commitment to Service
Here is a great article that hits the nail on the head with short sales. Pete, you need to read the FAR Short Sale addendum. The language specifically states that offers will continue to be accepted unless otherwise noted.
I do not know where the statistics come from on short sale closings, but I hear from everyone that I speak to that the house is closing fater than we thought, or it is a cash buyer. People must also realize that a short sale is already at the bottom of the price the bank can take. They get between 65% to 75% of what the original mortgage was. Then you can only try and negotiate about 8% from that.
Again I feel that you have not been told the entire story as I see usually done.
Don't just walk, run! Only about 20% of short sale properties ever close and in the mean time most lenders will require the listing to stay active and continue taking offers. I personally will not show short sales to my customers for those reasons. More than likely the bank and or listing agent have done nothing illegal. The general perception is that this is a buyers market when in fact most of our inventory, between 60-70% are short sales and unlikely to close. This has caused a very competitive market for the remaining listings. Feel free to call me if you have any questions.
What it sounds like is the short sale was approved with a different buyer who dropped out. In this case some banks just quickly approve the new buyer ("transfer the approval") and others make you go through the whole process. I don't think the agent deliberately lied to you.
Decide whether the tax credit is more important than this house and also if there're non-short sale homes available on the market that fit you criteria and act accordingly.
In the meantime, if you need a mortgage loan, my husband and I own a mortgage brokerage and we do loans all over the state of Florida, so if you need help qualifying and getting pre-approved, or you have any loan questions, please call us 1-800-801-6080
We do all types of loans: FHA, VA, 100% USDA, Conventional, Hard Money
Faith Home Loans
Get Pre-Approved: http://www.faithhomeloans.com/express.html
Huds do not come until close to the closing date or they are not useful. I would speak to the Broker and ask for a meeting with the agent with them. Did the agent explain the process to you about short sales?
These may tax your patience. But if the home is a really good deal and you have the patience and you really want that home, then I would say wait. But there is nothing stopping you to look for another and place a contingency on the contract stating the first accepted contract by a Bank or Mortgage company will be accepted and all others will be dropped. Make sure also that you do not pay a deposit unitl the bank accepts the contract, no matter what agency tells you different.