Home Buying in Massachusetts>Question Details

Ashley, Home Buyer in Massachusetts

What happens after the bank accepts short sale offer?

Asked by Ashley, Massachusetts Thu Sep 1, 2011

The bank apparently accepted our offer on a short sale home.
But what happens next?
I know for financing our bank needs to appraise the property-- but why, and is there any concern?
What happens next? I'm trying to get in touch with the realtor today for this info

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Answers

6
It concerns me when you say "the" Realtor and not MY Realtor. Hopefully your have a Realtor working for YOU as a Buyer's Agent, and you are not referring to the listing agent.

Short sales are very complex and it sounds like you don't understand the process or have the correct terminology. When you put an offer on a property, the seller needs to accept the offer (not the bank). The contract gets passed along to the bank and the seller requests a short sale. The bank has to approve the short sale in order for the transaction to happen. The bank can either accept, reject or counter the purchase price, depending on what they stand to "net" out of the deal, and depending on the value of the property. Your agent should have explained the entire process to you.

Once you get Short Sale Approval (SSA) from the bank, you typically have 30 days to close. That's when you'll want to get the home inspected, perform all due diligence, and your lender will require an appraisal. Again, your agent should be able to explain everything to you. Good luck!
1 vote Thank Flag Link Thu Sep 1, 2011
What happens if I were to put an offer in on a short sale and the bank accepts the offer but I am unable to buy the house
0 votes Thank Flag Link Tue Sep 10, 2013
Sally hit almost every bullseye!

I want you to elaborate on "apparently accepted our offer"
How does someone "apparently" do something in regards to a CONTRACT?
Do you have a CONTRACT or do you have a VERBAL acceptance?
You would know if you had a CONTRACT, you have to sign it and return it to the Bank;
Your Agent could not do this for you.

If you do not have a CONTRACT, you have nothing.

Good luck and may God bless
0 votes Thank Flag Link Thu Sep 1, 2011
Hi Ashley,

Make sure the approval/acceptance from the lender(s) is in writing. If it's not in writing, you don't really have approval/acceptance.

Refer to your purchase contract for timelines. The purchase contract should state when escrow will close after approval/acceptance by the lender(s). (In CA, usually 30 days on short sales).

Again, make sure the approval/acceptance from the lender(s) is in writing. Once you have that, the appraisal and home inspection can/should be done.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Sep 1, 2011
Hi Ashley,

You should see a short-sale as a two part process.

Part I: the lender (seller) will work on deciding if they will allow/accept a short-sale. This typically takes a couple of months because they review the homeowners financials, determine the value on the property and then make a decision.

Once the bank has approved the short-sale, they provide the homeowner with an "approval letter". I recommend you request to see a copy of the letter. This gives you the thumbs up to move on to part two, where you start working on your financing.

Part II: buyer works on getting the financing in place. You will provide your lender with paystubs, bank statements, tax returns and any additional documentation requested. You have the inspection period to inspect the property. Once that has been done your lender will request an appraisal, they need to make sure they don't finance more than what the home is worth.

This is why the whole process can take a few months. Typically, after you have an approval and you start working on your home loan it takes appx 30-45 days.

Hope this helps!
0 votes Thank Flag Link Thu Sep 1, 2011
I ask especially because the realtor warned "it could still take a few months to close".
So far everything has been swift. Heard back from the bank just a little over a month after our offer.
Just curious what things could possibly make this take until december if the bank accepted our offer
0 votes Thank Flag Link Thu Sep 1, 2011
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