Thank you for your response. Is the short sale that you are dealing with today, the same as the short sale that you were dealing with last summer?
If it is the same short sale, there is definitely something wrong somewhere. The market here in silicon Valley ahs become a seller's market. the Fair Market Value of Real Estate is going up rapidly.
I recommend that if you have not already started, that you begin looking for something else immediately.
If you find something else, i recommend that you grab that and cancel this offer. If you have been working on this short sale since last summer that is too long to wait. Your best opportunities are passing you by, and there is no guarantee that this short sale will close at your agreed price.
As I recall, this lender already has tried to get you to pay far more that the price that you had agreed to and far more than the appraised value.
If this short sale lender has done this to you once, there is a good chance that this short sale lender will do this to you again.
The best way to combat this sort of bad faith behavior that many of the short sale lenders engage in, is to be very proactive about finding something else, and buying something else, and canceling your offer with the short sale lender that has been stringing you along for months.
Charles Butterfield MBA
Real Estate Broker/REALTOR
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She also mentioned that some of the items that was sent a few months back wasn't clear and that they needed clear copies.
Does anyone ever encounter this with B of A? Are they pushing us around?
Do you think they start over from the beginning?
I know Bank of America now has a new system where they are are now approving or denying offers within 20 days.
I have a feeling that they start over new since they asked me to sign the Buyer's Acknowledgement and disclosure form early last week.
But as you mentioned you used a Negotiator, it does not work with some Banks.
The market has gone up since August 2011, and the Lender/s, B of A and any other will ask for
a higher Sales price, they stalled you it seems.
In our dealings with BofA, now a days it does not take more than 90 days.
Let us know if we can help.
Question: Is the buyer's acknowledgement disclosure form and the arms lenght the same thing?
I signed the acknowledgement form two weeks ago but heard back nothing from the negotiator.
What is your suggestion: Should I hold on for another couple of weeks or what?
FYI. not all short sales are the same so here is something that you may want to find out (ask) before you decide to wait on the short sale.
1. How many mortgage liens against this property?
*The more liens against the property, normally the longer delay
2. Has the short sale been pre-approved?
*In many cases the short has already been approved.
3. Is the listing agent experienced in short sales?
*You won't believe how many agents out there have no idea of what their doing. It wastes
everyone's time. I constantly have agents calling and asking me questions regarding their short
4. Oh, and who are the lenders on these property?
* In most cases, most lenders takes 2-3 months to get approved but Bank Of America is well
known for been the slowest.
PS. If you no longer want to deal with another short sale, currently there are far more short sales than bank owned so you choices on properties are less.
Good luck and feel free to shoot me and email if you have any questions.
I have successfully bought a house on short sale and it needs a lot of patience. 10 months is a lot of time and it is your personal decision when you want to call it quits.
I really like the house and that is the only reason we are holding on to it.
I will wait another month and if nothing happens, I will walk away as it will be 10 months.
I called BOA and ask some general questions and they told me that the BUYERS ACKNOWLEDGEMENT is not the arms lenght affivadavit, it is just to say that the buyer is not an employee or officer of the bank trying to buy the property.
I am so tired of the wait, I am very very tired and frustrated.
They listed the house for 325k.
My appraisal come is at 245k.
I offered 224k
I have to do repairs totaling app. 20k
BOA wanted 290k on 3/16/12 - i said NO i am not buying it for that price. My bank would never give me a mortgage for more than the house is worth. Would you agree?
I am the only person on the table right now.... Do you think they would accept my offer and approve this deal?
Please please advise.... Thanks all
I don't believe anyone can give a right time frame on your questions, in my experience the short sale approval is generated within two weeks after signing the acknowledgement but it will depend how good the banks "negotiator" is.
I wish there was uniform time line for short sales but as of now, it is up to the bank to decides how quickly a short sale is approved but 9 months is very unusual.
It is getting better though, I just had a short sale approved within 30 days with Bank Of America.
In addition, you should hold on tight to that property as the housing inventory level is very low right now which has turned the market into a "seller's" market.
I have my mortgage committment and is now waiting on Bank of America (seller's bank) to accept my offer so we can transfer title.
On March 16th, Bank of America wanted 66k more than my offer and I was going to walk away as the house is only worth 245k. My negotiator sent in contractor estimates and my appraisal to the Bank with hopes that they would re-consider my offer.
On April 9th, I was told that I need to sign and return as soon as possible the" BUYER'S ACKNOWLEDGEMENT & DISCLOSURE FORM" I did that immediately and sent it to my negotiator.
Question: Do you think this is the beginning of the short sale by me signing that form or is it near the end of getting an approval.
Waiting 9 months is way too long and I am in the process of walking away and day now.
Any help and feedback would be greatly appreciated. Many thanks
If the Bank is asking for a commitment letter, don't wait for your loan agent (I believe you said is with Bank Of America) for a commitment letter. Just talk to your real estate agent and write up a letter stating that you are committed to purchasing this home. I've had short sales where the bank ask for a commitment letter from the buyer and I just instruct my fellow realtor to write up a letter, if I representing the buyer then I normally help my client with that letter.
Congratulations and feel free to contact me if you or your realtor have any questions
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AMERILAND REAL ESTATE SERVICES
P 408-292-3000 F 408-273-6038 http://www.JoseAdame.com
Congratulations...it's going as it should. I'm sure you will get this done and closed. Thanks for keeping us all informed, not everyone does and it's nice to see the progress.
Feel free to contact me for any questions. I've closed over 200 short sales and know the short sale process inside out.
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I have closed over 200 short sales since 2007 and done many with Bank Of America. In my experience is that there is no pre-determined time after you've signed the arms-length affidavit.
In most cases I'm on the listing side so when the buyer's agent ask me "when" my answer is "I don't know" because it is the truth. Neither the listing agent or your agent can give you a straight answer. In my experience some have taken as little as one week or as much as 2 months.
Normally it will take longer when the seller has applied for HAFA which is a government incentive to the seller for doing a short sale.
Another reason that time is not possible to determined time is because who and what type of investor is that owns the note: Investors can be a private domestic, private foreign, a note that is in a "pool" or some big company, like an insurance company.
I believe for this reason you've gotten different time lines from my fellow realtors and that is because each has experienced different time lines. On the bright side is that one thing I can tell you for sure that the short sale process has gotten so much better and hopefully your waiting time will brief.
Wish you the best and congratulations on your new purchase.
My recent experience on the Buyer agent side with B of A was a positive one. This being that they had already lost the first buyer, so we had approval in 10 days and closed in 45.
It is exciting to buy a home and the wait can be frustrating. Hold on the the excitement when you found your home and when it closes you can celebrate.
All the best to you.
Unfortunately, the "arms-length affidavit" is but one of many documents that are included in the package submitted to the lender for consideration. There is no connection between signing this document and an expected time of approval. Depending upon the situation and other details, it could be as short as a few days or up to several months.
I agree with Grace. In my experience with BOA, if you have signed the ALT then you are probably about 2 weeks or so away from the point of approval and or counter.
With Wells Fargo they usually have you sign it right up front so it can still take 4-6 weeks before the approval from Wells.
If you've received the arm's length affidavit with Bank of America, then you're pretty close to having this approved. My experience has been that this affidavit precedes the approval or counter offer from the bank by about 2-4 weeks.
In my most recent short sale with Bank of America, the arms length affidavit was sent to my clients about 10 days prior to the counter offer being presented by the bank. Once the counter was adjusted and signed, the bank took another 2 to 2.5 weeks to send to us the approval for the sale. Altogether, for this sale, from date the contract was submitted to the date when the final written approval was received was about 45 days. Incredibly fast when you consider that Chase is still taking between 4-6 months to obtain approvals.
Good luck. You should be hearing from the bank soon with a counter offer on the price or an approval from the investor.
Area Pro Realty
It appears that this short sale has gone out of norm. I don't believe anyone will be able to tell you as you have been patiently waiting for a very long time.
The norm times on my Bank Of America short sales are between 2-3 months with some taking as little as 3 weeks.
I hope everything goes well...
Real Estate Broker
Chief Marketing Officer
My negotiator was asked by Bank of America to redo the HUD and resend it to them with the appraised value of the house. My offer is for 224k and Bank of America had wanted 290k but now they asked for the HUD for the 245k (appraised value).
Do you think I am near closing?
The fact of the matter that one can really tell you how more time it will take. It all changes case by case/short sale to sale. I think you already have good answer here and that most short sales don't take this long.
I'll suggest that yo make a decision based on the information that has already been given to either stick to it or move on.
Just a though,
Thank you for your response.
Yes... this is the same short sale I am getting since last summer.
BOA asked for the following
- Buyer's Acknowledgement & Disclosure form on 4/16
- Third Party Authorization form 4/25
I asked my agent if they are starting over my file and she said "NO".
She also said that BOA have a new system and they have to have these information.
Do you think I have a long more wait?
In the transactions that our office has had with Bank of America, it has generally been about 30 Days to approval after you have signed documents such as the arms length affidavit.
That is quite an improvement over the much longer times that we had experienced earlier.
However even 30 days is too long.
The banks complain that the prices for short sales are too low.
However the short sale process with the banks has been unnecessarily long and cumbersome.
The result is that it takes a hefty discount to motivate buyers and their REALTORS to even be willing to work on a short sale.
That is the reson that REALTORS point out that a listing is a regular sale not a short sale in their remarks.
Short sales have gotten a very bad name with REALTORS and most buyers, and many REALTORS will not even show a short sale property because in the past the experience with the short sale lenders has been a bad, time wasting experience.