In some real estate markets, fewer than 1 in 10 short sales close. Just because that home is listed as a short sale doesn't mean it can close at the advertised price (because it's subject to seller's Mortgage Lender's approval). Some short sales are priced ridiculously low. So low that the sellers' Mortgage company will never accept them. To get your offer accepted, the offer will need to be priced near market value. The Mortgage company will evaluate the cost of foreclosing vs. taking a bird in hand now, they do a risk assessment on the property to see which may be the better outcome for them. That Mortgage company does NOT care about you the buyer!
Remember the Lender taking the financial loss here is going to want to know fairly accurately what the fair market value is for the property before they are going to agree to a price for it. That lender will typically get 2 appraisals and perhaps a BPO and then compare all that data to see what they are giving up if they sell now versus going through with the foreclosure.
Many Short Sales fail because the mortgage company is unfamiliar with the local market. Donâ€™t expect a quick answer as they research the comparable home sales.
The lender may demand the seller to sign a promissory note to pay back the short sale. If the seller refuses, it may sour the deal.
The mortgage company does not want to own the property, if they can help it as the alternative is to foreclose it.
Make your offer contingent upon the lender's acceptance. Give the lender a time frame in which to respond.
Some lenders submit short sales to committee, but most can make a decision within two to three months. Typically the greater the loss the longer it can take as it goes through various reviews and committee meetings at the Mortgage company. This is a slow moving process, do not expect any fast responses or action from the seller's mortgage company, do not expect that you have any pull, you do not! Expect frustration, delays, unknowns and at the very end a final purchase price higher than what you had initially signed on for, that happens in over 90% of these sales when they actually do close.
Your post is very confusing on the dates and especially the Agents involved. i.e. "Your Agent" "The other Agent" and "The Sellers Agent" ???
If I follow you correctly, you do have a very unusual S/S situation. As Noone is normally ever complaining about a Closing Date which is TOO SOON on Sht. Sales!
As I said below, It depends upon your Contract. What does it Say? (all of it, every word...) and secondly, as Peter said, and I tried to convey, you are not in much of a leveraged position. The Bank owns all of the cards and you are really at their Mercy.
Too Many S/S's are exactly what Peter discribed.
If worse comes to worse, There are A LOT more houses out there at GREAT prices w/o all the S/S crud attached. Just don't be too greedy or you will be penalized with a Short Sale!
Short Sales at this point in time are a lot like the Wild West and can easily turn good Buyer Clients against good Buyer Agents. Informimg the Clients before hand and keeping them up to date and also keeping as much info. (Emails, etc..) saved in writing is the 1st line of defense against the Short Sale virus' that infect so many.... (people have very short memories sometimes...)
I thank Agents such as Peter Colt and others who have nothing to gain personally by freely giving their insight and S/S exp. here on trulia. Thankfully through Trulia, he and other Agents help to reinforce the Same kind of preliminary Short Sale pep talk that I work so Hard to try to convey to our Clients BEFORE making an offer...
Short Sales; -Not for the faint of Heart"...
Have a Blessed Day!
Thanks for a great discussion!
Just to have a little more breathing room, I usually try to close a few days before the deadlne because nothing is final until the short sale lender provides final approval of the HUD (closing statement).
Also note that although agents on either side may request an extension, and even if both buyer and seller agrees to the extension, it isn't a done deal unless the short sale negotiator agrees to the extension. Without an approved extension, you should go only by what is stated on the short sale approval as the date the sle should close.
I don't follow the dates exactly here.......
It may depend on if you are using financing or cash. If you got approval in mid January for Feb 25th closing and that is what is signed....sounds like you have the good workings of a contract no matter what the other realtor wants to happen.
My buyer advice to the seller's realtor would be to honor the contract as written and if she wants to negotiate, she needs to do that with the cash buyer and convince them to wait until Feb 26th on a decision as to what to do with this property if it is still available on that date.
In most cases I see if the SS addendum says the 25th...that's the day your lender, the title company, and the ss lender are shooting for at this point.
The other advice I would give my client in this situation is to do everything you can with your lender to ensure it closes on time or a day or two early so that there is no chance I loose the house to a contract breech if it is not closed on time. I'd be in constant contact with the title company and the lender to ensure everything is on track daily for an on time close.
Good luck.......what's your realtor saying?
SIMPLE answer NO
What professional Realtors deal with daily ... MAKES no sense however lenders have soooo many files and overwhelmed you are only a mere number in the line up.
We instruct our clients NOT be packed have to move dates do change ;)
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Short sales are a Dog eat Dog deal sometimes. (usually very FRUSTRATING at the very least!) With many entities in distress. As one Agent so eloquently put it in another post about short sales: you the Buyer, are at the bottom of the food chain, make sure you have someone properly looking out for YOUR BEST INTERESTS...
Good Luck to you!