Home Buying in 93003>Question Details

Tn2cagirl, Home Buyer in Ventura, CA

how do I, as a buyer, track my offer on a short sale? My agent is getting no info from the banks.

Asked by Tn2cagirl, Ventura, CA Sat Jun 2, 2012

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I coach all my Buyers in the beginning, so they have a more realistic expectation. Plan to wait a minimum of 3 months for a response and a maximum of six months. New guidelines coming from the government mandate short sale turn-around time for a response to be 60-days. The banks are swamped with short sales! According to a BofA statement in May 2012, the bank has completed 200,000 short sales in the last two years and another 30,000 in the first quarter of 2012.

In addition to a new seller cash assistance offer, BofA also recently announced in April that it’s trimming response times for short sales down to 20 days. However, real estate professionals must do their part and submit five documents for a complete short sale package when initiating the process.

So, sit back, relax and wait for the lender(s) written response. Alternatively, do not start the process of purchasing a short sale -- avoid them entirely. Sellers and Banks do not not to find out that an otherwise "serious" buyer has decided to walk away.
0 votes Thank Flag Link Sat Jun 2, 2012
As much as a real estate agent would like to control the communication with the short sale lender, you are the party involved! It's important that you keep your agent involved, although in some rare cases I have had my clients call and get answers to questions that we couldn't get from the online processing services of the same short sale.

I would also recommend that your agent (or yourself) go online to http://www.shortsalesuperstars.com and get involved with the forums. You will get the best advice on what to do to put a fire under the negotiator!

Scott Cary
Broker Associate
0 votes Thank Flag Link Thu Feb 21, 2013
Tn2cagirl,

The Seller's agent has authorization to talk to the Seller's Lender. Some listing agents will use a 3rd party negotiator who has the authorization. In either case, your agent who represents you, can only rely on what the listing agent reports back through the process.

What you as a buyer have no idea of, is how good the listing agent is at processing short sales. There is not special education, and not special licenses needed to represent a seller in a short sale. Because of the complexity of a short sale it takes a very detailed orientated, organized individual to be abel to process a short sale in a reasonable time frame. For myself I have had a 3+ year partnership with a 3rd party negotiator (who is an attorney) and we have closed 100% of every Short Sale we have taken on. We just closed the last one last week. We have had approvals in as little as 3 weeks, average is about 3-4 months if there are two loans, sometimes 6 months and one went 9 months.

Short Sales are not for every agent, it takes a very specific skill set to be successful with short sales. No one Short sale I have worked on in the last several years had the same issues an conditions. Even when working with the same lenders on different Short Sales, the lender was not consistant on how they handled each property.

http://homebuysblog.com/category/short-sales/
http://homebuysblog.com/2011/06/27/10-mistakes-buyers-make-w…
0 votes Thank Flag Link Mon Jun 4, 2012
Generally, as a buyer, the banks are not going to respond to you. It's a long, long wait, and tracking a short sale offer is not a realistic goal. The chances of you tracking down the exact right person, that has your file on his or her desk, is minimal.

Believe me, the agents want this deal to close. They've likely put in a lot of time and are hoping to get paid on it someday. If your agent is not getting a response, don't waste your time thinking you will do any better.

Short sales are a tough game to play. I encourage my buyers to keep their eyes out for other properties while waiting for a short sale. Not all short sales get approved, so don't put all your eggs in one basket.

Keep looking...if you find something else, great...the lenders will respond when they finally get through all their steps...
0 votes Thank Flag Link Sat Jun 2, 2012
Generally, as a buyer, the banks are not going to respond to you. It's a long, long wait, and tracking a short sale offer is not a realistic goal. The chances of you tracking down the exact right person, that has your file on his or her desk, is minimal.

Believe me, the agents want this deal to close. They've likely put in a lot of time and are hoping to get paid on it someday. If your agent is not getting a response, don't waste your time thinking you will do any better.

Short sales are a tough game to play. I encourage my buyers to keep their eyes out for other properties while waiting for a short sale. Not all short sales get approved, so don't put all your eggs in one basket.

Keep looking...if you find something else, great...the lenders will respond when they finally get through all their steps...
0 votes Thank Flag Link Sat Jun 2, 2012
There are a lot of Realtors who will not handle a Shortsale; either end:
I think you can see why.
Once we submit an Offer, we lose all Control; all!
We theorize that if we pester the person who has that file on their desk, that the file will mysteriously fall on the floor and end up on the bottom of the pile. Probably not theory.

If you do not have it within you to sit back and be patient; you shouldn't have started this.

Good luck and may God bless

ps; no, you cannot track your offer!
0 votes Thank Flag Link Sat Jun 2, 2012
As far as sitting back and being patient, I sold my previous home in Dec. 2011 & was left "homeless" by the sellers of the house I bought backing out at the last minute. I have been staying at hotels with 2 small dogs ever since. Also, there is very little on the market in this area that is not a short sale. Any suggestions?
Flag Sat Jun 2, 2012
If you agent is a Buyers Agents they would not get any info direct from the Sellers Bank but from teh Listing Agent or the negiotiator hired to work on the sellers behalf. It is why the seller needs an expereinced and aggressive listing agent who can get updates and pass thenm onto your agent or you. You need to assess where the seller is in the short sale process. First the short sale package is completed and submitted, then the sellers bank will order an appraisal, once it comes back they determine if your offer is at or under market value. The process can take as little as a month but 2 months on average. if the agent is not following up properly, it could be 3-6 months. Check with the listing agent for updates.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jun 2, 2012
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