The reasons why a homeowner would want to list a property as a short sale option vary which may include not paying the mortgage for months on end while the homeowner or another person occupy a house until it is taken in to foreclosure. Strategic default may present itself in a way where the homeowner knows they don't qualify for a short sale option but may hold the property as long as they can for financial reasons. Not all properties listed as short sale option can be approved or sold under a short sale option. Unless the seller's agent has the letter/package from a bank indicating approval to move forward you will not know for sure at this point.
Thanks for your understanding, and I hope I've added additional information to ponder. I do wish you all the best and hope it all works out.
If WF take long time to approve the short sale, can I make offers on other properties now? I think if the price go up next year, WF will set higher price on that.
In my experiences if the seller DOES qualify for the option it should not take more than few days to get bank approval letter/package regardless if there is an offer or not.
I've worked through many short sale options with WF in the past six years and they are terrific. The majority of the options I've worked through had been approved prior to listing properties on the open market. The most recent option I worked through was March 2013, an FHA short sale option. We again got bank approval (letter/package) before listing the property on the open market, got the home under contract and closed the deal within 35 days.
WF is straight forward with their approval guidelines and the documents they need from sellers to evaluate if they quaify or not for the option.
Please keep us posted...I think there is far more to your story. Thanks so much!
My experience with Wells Fargo is similar to the experience that Monica Breckenridge has had. Wells Fargo will usually postpone a foreclsoure sale if they have an active short sale on the property.
With respect to whether or not home prices will go up next spring, my crystal ball is getting rather cloudy. However I can tell you that my experience with recoveries of the Real Estae market in the past is that the recovery usually lasts for three years. The current recovery is beginning the third year. Normally that would indicate that we will have another increase in real estate prices this spring, the third year of the recovery.
However interest rates are rising and will probably continue to rise. Increasing interest rates will stall a Real Estate recovery. Also the economy has been faltering and the government shutdown has made it difficult to get financing. These are also factors that could stall a recovery.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Broker/Owner: The Butterfield Real Estate Firm
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org
California Real Estate Brokerage license: BRE#00901872