If you want any chance to close this purchase in a timely manner than have your agent find out the following:
1. Who are the lenders that must approve the sale?
2. How far along is the seller with the short sale approval process?
3. How experienced is the listing agent with short sales?
4. Does the listing agent feel strongly that the bank will grant the seller approval?
And to emphasize again, if the lenders are Bank of America, Chase, WAMU, or IndyMac then Iâ€™m afraid you stand little chance of closing within 6 months, or even at all. Thatâ€™s right, most short sales involving two different lenders will never close because junior lien holders can negotiate their positions and if the seller is unwilling to contribute additional funds to pay them off or carry a personal note, then the sale will most likely fail.
So again, what can you do to speed things up on the buyer's side? Nothing, but wait and hope the sale is approved quickly.
Hope this helps!
Ok - a little confusing - are you the Buyer or Seller. There's nothing you can do as a buyer to speed it up. As long as the listing agent is experienced in short sales you should be ok EXCEPT, you said "unknown liens" - what sort of liens? They may stay with the property if they are mechanics liens for example. If they are IRS liens, there will not be relief.
100% of my business is short sales and the ones that do not close are those with more than 2 loans / liens and more than one lender / investor.
If you're expecting the tax credit, your offer would have had to be submitted in December '09 to have enough time to get the approval and close by June.
There's no magic bullet to get it done faster. The worst banks to deal with on short sales in order from worst to better are 1) Bank of America (& old Countrywide); 2) Chase (& old WaMu); 3) HSBC; 4) Aurora; 5) CitiBank
and the best is 6) Wells Fargo
Talk to your agent and good luck !
Broker / REALTOR
Orange County, CA
Also laughing about the don't mind being a pain.
You are already under contract from what I understand so you have till June 30th to close. If it is about to go into escow, chances are you will be done in plenty of time. However... I had some that were suppose to have pre-approval and it still took 2 months to get into escrow.
Did you just get the offer accepted? How long has the short sale been on the market? Who are the banks on the liens? The buyer accepted your offer? I guessing you meant seller?
And, just as an example of how long these take... I just got one closed last Friday 1-29-10, that went into escrow on March 25, 2009. One Loan, Bank of America. It was a Freddie Mac loan and getting them to do ANYTHING in an expeditious manner - well, it's fighting with the Government and that's always a losing battle.
It's closed, a first time homeowner got it and the sellers have moved on with their lives, finally.
Best of luck,
Broker & REALTOR
Orange County, CA
You can't do much about this directly, but you might be able to have your agent discuss the short sale package with the listing agent to either (1) help the listing agent do it right or (2) let you know that the listing agent package is not that good and your chances of a timely agreement from the lender are not so good.
Short sales can take awhile even with a proper submittal and you are clearly running out of time on the home buyers tax credit.
BRC Realty Group
Sadly....there is nothing you can do to make it go faster or slower. It's just going to have to go through the process. The listing agent can make sure that they get everything put together properly and follow-up that it's been received, but other than that, you just have to wait.
You say that the seller accepted your offer....are you in escrow? or did they simply send your offer off to the bank. In theory, you should have enough time to close before the tax credit expires. You have to close before the end of June 2010. But you have to have an open escrow by the end of April. So that's the first date you need to worry about. If you are the only offer on this home, and still interested in April...make sure you get them to open escrow, so that you don't miss this date. (unless you have already).
I'm hoping that the banks realize that these dates will affect first time home buyers and move those files quicker....but I'm not holding my breath. :(
Good luck with this purchase!!!
Personally, I'd look to Thom's post (the first respondent) for some important cues to how fast (or slow) the short sale may progress. In particular, pay attention to the names of the banks holding the loans. If the first mortgage is with Bank of America or Countrywide, my suggestion would be to move on to another home. Similarly, like Thom, I've found that the short sales that will not close or will only close with financial "assistance" from the buyer or the agents are those homes with two or more loans on the property. Again, if this home has two or more loans, then I would strongly suggest looking for another property to purchase.
As to "unknown liens", the best way to determine what liens exist on the property is to ask the listing agent to provide you with a copy of the Preliminary Title Report for the home. The "prelim" will contain all recorded liens or judgments against the property as of the date of the report. This will help greatly in determining the encumbrances against the home.
Finally, as to your involvement in the sale, while I can appreciate the frustration and your desire to move things forward, as my colleagues have already noted, there is little that you can do--as the buyer--to speed up a short sale. In fact, if the short sale involves some of Thom's "Worst Banks", then I would conjecture that there's little that even the listing agent can do to speed up the process. The bank will move as quickly or as slowly as it pleases, and shouting, calling, harrassing, pushing, emailing and any other action that might be deemed completely warranted under the circumstances will not yield a more favorable outcome.
As with all short sales, look to other homes while waiting for the decision from the bank. Until the bank says "yes" (and, keep in mind, that many many times the banks will "counter" your offer with a higher price or conditions or additional money, etc), you should be actively looking at and possibly buying other homes to ensure that you can find a suitable home to buy before the June 30 closing deadline.
Grace Morioka, SRES
Area Pro Realty
Truly up to title company have all released of liens, Nothing you can do all professionals are aware of terms of contract however be careful of expiration dates.
We do recommend for any of our clients you may have an executed agreement HOWEVER not all short sales close based on number of reasons, best keep looking and maybe place multi offers on several properties.
You would need close by 6.30.10 HOWEVER executed contract must be no later than 4.30.10
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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This is one situation ( short sales.) where the squeaky wheel will slow things down more than speed things up. It's a sure way to keep your file getting mysteriously moved to the bottom of the pile.
Just my humble opinion.
Hang in there and hope you have everything ready!
Be aware that you'd need to have an approval in approx. next four months in order to get the tax credit. You wont open escrow until you have an approval. Escrows generally take 45 days.
You may want to keep looking. You can back out of your offer at anytime as a buyer on a short sale.
I am a little confused by what this statement meant, 'if i don't get this tax credit, I cannot buy this home'. Does that mean funds are that tight for you or you just prefer getting a tax credit? If funds are that tight, you may want to reconsider buying this home. The last thing you want to do is start out in the hole or close to it when buying a home.
In the meantime, keep your eyes out, for either an REO, ( Who probably won't accept a low down payment transaction, anyway.) or an equity seller - either of which can provide you with an escrow with a stable - and shorter - time frame.
If you find something better, or more likely to meet your schedule, grab it and withdraw your offer from the short sale. That isn't an actual escrow - or shouldn't be, at least - anyway, until the lenders have worked out the ability to either accept, or respond to your offer.