Home Buying in 55110>Question Details

Kevamarie, Home Buyer in Minnesota

While dealing with a short sale, what is a commite?

Asked by Kevamarie, Minnesota Thu Mar 11, 2010

So we put a bid in,on a home x amount with 3% down and 3% closing from seller. The bank countered with x amount, which we accepted. The problem was they did not clarify wether they were still ok to the seller paying 3% to close. We have been on hold for 2 weeks now and have been told that it has gone to the commite. The amount we are talking about is under 3 thousand, I can't belive that Bank of America is draging thier feet this bad. So can any one tell me what a commite is and why the person that was able to give the counter not able to give us the answer. Thanks

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It is normal and occurs with most banks. Usually there is a processor who puts it all together, they submit to the asset manager who can give a yes if it is within the guidelines set by the bank, if not the asset manager gives a recomendation and it goes to a committee. The committee could be 2,3,4,5 or more people who look at and vote yes, no or to counter based on the asset managers recomendation or vote on how based on how they are feeling, if their spouse upset them before they went to work of if the donut shop got their coffee right. See there is no rhyme nor reason sometimes, or so it seems, it is just how things work.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Mar 11, 2010
Commitee review is perfectly normal. And it can a couple of weeks or more. Just the way things are. I am sure your agent told you this can be a longer process :>)

Do not have your agent bugging the listing agent every day for an update(IMHO). He/she has absolutely no power to speed this up. Every 2 days or so should be fine. You don't want to make an enemy of someone who can be of help to you. Being a pest or persistant can be a fine line. Just my opinion.
0 votes Thank Flag Link Thu Mar 11, 2010
The short sale process can be very frustrating. Unfortunately, the process does not have a sole person at Bank of America with the authority to respond to the offer. There are many considerations, different parties involved and investors that have a say in the offer approval. Many lenders have a policy on the amount of seller paid closing costs they will allow in a deal. The fact that the amount is under $3000 isn't the key but the percentage of the sale price that the closing costs are is what they look at. Also while some lenders may allow 3%, other investors of the loan that have a say in the approval may not. I have had a few short sales where the lender would only approve 1% of the buyer closing costs to be paid by the seller. In my experience, you can't get around the policies they have in place.

So you will have to wait for the person who gave you the counter-offer to hear back from the group of individuals they need to get the response from. The only comfort you can take is that all other buyers purchasing a short sale have to go through a similar process. I heard recently that a negotiator working on the short sales for lenders can have over a 1000 files at a time that they are responsible for. It may not make you feel any better but all of those buyers are in the same boat as you.
0 votes Thank Flag Link Thu Mar 11, 2010
Happens all the time. The committee is a group of people at the bank that goes over the offer in full. Have your agent call the listing agent daily until it gets done.
0 votes Thank Flag Link Thu Mar 11, 2010
Because those are their policies.

Comitte will be a goup a persons that make desitions.

Believe it, that is the way it is.

Keep working on buying your next home.
0 votes Thank Flag Link Thu Mar 11, 2010
First, do you have a buyers agent representing you? If so, they should be helping you out with these questions (and this a reason to have a buyers agent -at no cost to you - as they help with these things and navigate the tricky short sale process).

Second, don't be surprised about banks dragging their feet. We see this constantly now, and yes, it makes no sense. The banks are overwhelmed though. We have found the best way to deal with the banks is to repeatedly call/email your contacts there, try to get other contacts and work your way up. Get in touch every day. Eventually you usually get your answers, with enough persistence!

Good luck,

Richard Schulman
Keller Williams Real Estate
0 votes Thank Flag Link Thu Mar 11, 2010
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