Home Buying in 48167>Question Details

Bret Malkows…, Home Buyer in Northville, MI

I have put an offer in on a short sale and I know that the banks take some time to look through the

Asked by Bret Malkowski, Northville, MI Fri Jan 30, 2009

proposals. I have heard though that you can put something in the contract where the bank has to respond within 30 days. Is this true? If so, can anyone tell me how this can be done and where I might find some documentation?

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Bret:

I am not in your market, however this attachment should be helpful in communicating to your agent regarding timelines. We state in our contracts that all timeframes regarding inspections and financing to begin after short sale acceptance by sellers lender.

http://www.columbusrealtors.com/Img/pdf/3078.pdf
1 vote Thank Flag Link Fri Jan 30, 2009
HI Brett ... not sure if you're already working with an agent , but you can certainly add that language to your contract. However, it does not mean the banks will respond in 30 days. If you're using this language as a way to require the banks to speed their process up, I'm afraid it probably won't help. A good majority of banks have their "process" that must adhereed to when approving short sale offers (if they even do). And, typically, their process is lengthy.

If you're using the 30 day language to ensure you're not tied down to this offer, it's a good idea. In fact, I only lock my clients in for a week maybe 2 when dealing with short sales.

If you're not using a Realtor, I'd be more than happy to assist you with the offer. Feel free to contact me personally with any additional questions you may have.

Best of luck,
Lisa Bender
Keller Williams
1 vote Thank Flag Link Fri Jan 30, 2009
First and best idea is to avoid short sales. http://www.BuyBELOWmarket.net If you just can't find that home of your dreams at a great price... then avoid the three biggest issues with short sales.
0 votes Thank Flag Link Sat Oct 30, 2010
Bret,

An old question re-surfaced! Hopefully you are already in a home by now.

As is the case with any contract, lobby for verbiage that you want that best protects you. It is more and more common to see a minimum timeline commitment from the buyer ... usually 60-120 days.

Let us know if you are in a home now, and if so, was it that short sale?
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Thu Sep 23, 2010
Good Morning Brent,
this very question just came up in our wwocar legal news letter. Every contract you write should have a drop dead date now mind you it will not make the banks move any quicker they move at there own pace and when they get to the file they get to the file
0 votes Thank Flag Link Thu Sep 23, 2010
Bret,
You can always word the contract with a 30 day expiration so that you have an out. If the house is a good deal, it may be worth the wait. Banks are so overwhelmed these days that getting an answer can take weeks or months, especially if you are negotiating with more than one mortgage. I hope all of this was explained to you upfront.
Stacey Green
South Lyon
0 votes Thank Flag Link Fri Jan 30, 2009
good luck getting a response in 30 days on a short sale.. i work with a facilitator whom is someone who connections with the banks and has direct numbers to get a quicker response..
0 votes Thank Flag Link Fri Jan 30, 2009
The bank is not human, you are powerless over the bank. You are a peice of paper in a stack. I would not add any extra addendums if you don't have to.
0 votes Thank Flag Link Fri Jan 30, 2009
Your agent can advise you on this, but bear in mind the home may have several liens that need to be addressed and it may take longer than 30 days. Each bank is different, but the lien holder will probably need time to get its own BPO or appraisal. The bank may also need time to study documentation from the seller supporting his need for the short sale.
0 votes Thank Flag Link Fri Jan 30, 2009
Bret,

I suggest reading your entire purchase offer, including addendums. There should be a standard clause. Your agent would be able to advise you on how to deal with the sellers while waiting for the bank.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Fri Jan 30, 2009
Short sale bank could have a bidding war. With all contracts you can have an expiration date HOWEVER with foreclosure or short sale difficult to demand a response.

I recommend for you keep looking hope bank will provide you an executed contract.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Jan 30, 2009
Bret,

That is something the agent representing you (and I hope you have a buyers agent) should have explained and addressed. If you do not have a buyer's agent working on your behalf, and you would like to discuss your options as relates to this and possibly other properties, don't hesitate to contact me.

Derek Bauer, Associate Broker / Realtor
Real Estate One
http://www.DoorToDreams.com
Derek@DoorToDreams.com
734.678.4745 - cell
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Fri Jan 30, 2009
Your agent should be able to do this for you. Basically it needs to be worded that ,"this offer to purchase is valid until whenever," and if the time frame comes and goes then the offer is null and void.

You can "make" them respond though. Either they do or they don't. If you really want the home you've got to play the waiting game and play by their rules. Otherwise move on to another target
0 votes Thank Flag Link Fri Jan 30, 2009
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