I wish you the best and hope you can find a qualified buyer soon!
All the best!
1) Tighten up your contract with the buyer: Insist that they start contractural deadlines after the bank has approved the short sale, but that escrow opens right away and then within 21 days from the bank's acceptance, the lender will have an underwritten approval of the buyer's loan, or you can kick them out of the deal for non-performance, but before then, it is VERY important that::
2) You will want to speak directly to the buyer's lender and ask the following questions: Do you have a completed application? Have you pre-qualified them or had them underwritten for pre-approval? Can you tell me about them? Do you see any problems or red flags? Have you run a credit report? Do you have Verification Of Employment? What are their FICO scores? What are their ratios? What type of program are you planning to put them into? Where is their Down Payment money coming from? Do they have W-2 or self-employment income? Have you decided who to place the loan with yet? Have you run the package through Desk Underwriting (AU) yet? How long will it take to get the appraisal done and turned around? How long will it take you to get loan approval? If the lender answers well to all of these questions, then have the lender send you a copy of all the work that was done on this buyer. Then have your agen't's lender go over all of this to make sure it conforms to the TYPE of loan the buyer is tryng to get. KNow that even doing all this there is no absolute guarantee in the present world of lending challenges, but at least it will give you a better chance of success. Ellen Hayes, Murrieta, CA Remax 951-600-8657
Pauline Woelky, West Realty
Love the name by the way, I feel like Dear Abby :). Unfortunately, this is a component of our marketplace at this time. There was a time where I had gone 5 years, that's right , 5 years without ever loosing a transaction once we got past the first 17 days. Now people are a bit different and banks are a lot different. This situation can be really exagerrated if you are a short sale listing as well.
Your agent (at a minimum) should request cross qualification with their own lender. If someone doesn't like it, then they need to explain it falling through two times thus making it a requirement of any offer. This is VERY common right now because of situations like yours. I know that is a common answer, but there is more - you should make sure your agent shows you their strength financialy speaking.
If there is only one offer to consider, the math is pretty simple BUT and this is a BIG BUT - if they can't get the loan at the end of escrow, your agent should of already Removed the Contingencies after day 17, thus enabling you to put in a claim for the deposit. You don't have to go after it, but you would have had the right to. The buyer should KNOW by day 17 if they can get the loan or not. Your agent needs to be on top of this. This shouldn't be coming up on the day of closing! That requires an explanation in my mind. If there is only one offer, and you knew it was risky when you accepted it, than it is what it is. But if you chose betwen more than one, the vetting needs to be better. And you have to get that loan removal done.
Good luck and I hope you the very best - Stefan
Micki Dickinson, GRI, RECS
PROFESSIONAL REAL ESTATE SRV.
Good Luck to you and your family, I hope third times a charm.
Realty World & Associates
Short sales are particularly difficult, as at the end the bank has the last say what they will accept and if they will accept the buyer..... I feel for you and hopefully the 3rd try will be a charm.
Good Luck to you.... you know your Realtor can probably do very little being every so depending on what the
bank in a short sale situation is actually going to accept.... It is just as hard and frustrating to the buyers who THINK THEY bought a house, only to find out that the bank said NO....
Good Luck to you!
Edith YourRealtor4Life and Chicago and Northern Illinois Connection
Think about the buyer who spent money on inspection, option and appraisal money NOW can't purchase a home, potential loss of escrow money based contract.
Seller may have moved out of their homes... IT IS HUGE PROBLEM.. nothing anyone can do.
I think of 2 lenders THAT I can't post on public venue which will pull the plug at the last minute... when speaking with them .. they state why waste their time till closing.
To me class action suit needs be filed against the lenders well known who do this ! ...
As expression "don't get me started I could keep ranting about this"
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
why are you discouraged ? You need to take control ! Part of YOUR job is to be sure the mortgage officer can guarantee their approval -- this is crazy ! There are so
many great mortgage people -- be sure your Buyers go with one YOU know that will not let this happen.
If you need some names -- send me an email & i'll locate one in your area Kathy Critch email@example.com
A lot of times a loan officer just scribbles something on a piece of paper for their real estate agent clients so that the agreement can be written.
This is not a 100% perfect system because the mortgage underwriter does have the final say. Also, an appraisal has to happen and there may be issues with that.
If you have any other questions about this, i am licensed in CA and happy to help.