Home Buying in Chicago>Question Details

Nancy, Home Buyer in Chicago, IL

Buying a short sale in West Rogers Park (Peterson and Western).

Asked by Nancy, Chicago, IL Wed Jan 28, 2009

I been waiting a while for this property, over 6 months. Is it appropriate to ask for a price reduction based on the fact that property value continues to decrease? Also, any thoughts on this area?

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3
Nancy,

I am a real estate attorney and I do a lot of shortsale work for clients both for buyers and sellers. A couple of quick comments:

1. Normally when we take on a buyer for a short sale property we institute a "contract cancellation" date, so that we don't have an contractual entanglement, I am hoping this was done for you. This would be a date that if we didnt have an answer from the lender , the buyer could cancel the contract and receive the return of the earnest money.

2. Believe it or not the record time I have waited was 7 months for approval. I will withhold who the lenders were, but it could still happen. The typical time is around 3 months to get approval and move the transaction forward.

3. You may want your attorney to confirm that the house has not already gone to auction. If it has been scheduled for auction, but delayed multiple times, that is a hopeful sign for you, although not conclusive.

4. We have not seen alot of success with price reductions, but as Eric points out, it often depends on the who the lender is, the ability (and competence) of their loss mitigation department (also might be called a special assets department - depends on the lender), and the communcation that has been fostered with the bank.

Let me know if I can help in any way.

Sincerely,

Paul Garver
paul@hg-legal.com
1 vote Thank Flag Link Wed Jan 28, 2009
Thank you, I have already received approval from the lender but the closing was delayed due to the tenants, not sellers in the property and I await eviction on the unpaying renters. I hope this ends soon. Thank you for your help and advice.
0 votes Thank Flag Link Fri Jan 30, 2009
Hi Nancy,

Depending on your contract, the deal may be null and void due to the time the bank was given to respond. If you have good communication with the loss mitigation department on the file, you can submit a lower offer. But, you probably know that will delay things even more.

If you are not comfortable with the purchase and you are not receiving communication from the bank, I would contact your attorney for advice to either stick it out or get out of the deal.

Peterson and Western is a pretty quiet are (if you're home is not on Peterson or Western themselves!). You are close to Warren Park and Robert Black Golf Course (this is a great Park on Pratt).

I have represented clients on short sales and have offered on them myself. In addition, I have attended credited courses on short sales and foreclosures. I think 6 months is a long time to not have a resolution if you are not receiving proper communication.
0 votes Thank Flag Link Wed Jan 28, 2009
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