Jane, Home Buyer in 33426

Waiting on a short sell approval for more than two months

Asked by Jane, 33426 Wed Apr 9, 2008

We put in an offer on a short sell property about two months ago, which was immediately approved by the seller. The realtor said the bank ordered an appraisal and it's 20K more than our offering price. So the bank didn't approve our offer initially. However, our realtor convinced the bank to order another appraisal because (1) the appraiser is from another county and (2) no one looked at the house when it was asked for 20K more and it has been on the market since last August. So our realtor told us to sit patiently and wait. My question is whether there is a chance that the bank will eventually approve our offer and also is this a normal process? How long does a short sell usually take? Don't you think it's better for the bank to approve our offer with $20k less than foreclosing on the house months later? We don't like to get tied down (we put down money in the escrow) and there are plenty of homes selling on the market. My patience is running out...

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I am currently going through a short sale. We got a fair offer for the property and submitted all the paperwork to the two banks that I have loans with. The first bank approved the short sale right away but the second bank was dragging their feet. It was impossible to get in touch with the 'negotiator'. We were coming down to the wire and the buyer didn't want to give us any more extensions. I really didn't want to lose the property to a foreclosure since a short sale is better for my credit than a foreclosure.

Someone suggested that I contact my local Congressman's office for help. I called them on a Monday afternoon. That same day they faxed me a privacy release which I sent back right away. They contacted my second lien holder Tuesday morning and by Tuesday at 5pm we had our answer.

My advice -- if you are the seller in a short sale situation and you are stuck waiting for the bank's approval -- contact your local Congressman's office and have them help!

Because of that one phone call my short sale is now approved by both banks and it only took about 30 days for everything to go through.

Short sales don't have to be a nightmare if you are organized from the start and know who to call when you need help!
2 votes Thank Flag Link Sat Jun 13, 2009

This is truly the saga of a "short sale." There is no set time for the successful completion of a short sale. We have heard reports of 5, 6 or even more months of waiting only to find the disappointment of not getting the home.

Good luck with your effort, hopefully it will work out and you will soon be able to enjoy your new home.
0 votes Thank Flag Link Sat May 24, 2008
Banks will pursue a deficiency judgement against the current property owners when they can. If the current owners retain title 2 months longer, that is additional revenue for the bank......if they are able to collect. Even when the bank does not collect, they carry it on their books as a receivable.

Banks don't have an incentive to bring the contract to closing quickly.
0 votes Thank Flag Link Wed Apr 9, 2008
Deborah Madey, Real Estate Pro in ,
That is why I don't like short Sales. My client's usually require 24 to 48 hours reply to their offers and with short sales it can take up to 3 months or more...

The best person to explain you about your time frame will be your realtor and the bank you are dealing with, as each deal fits a different situation.

In regards to being "tied down", you should consult a real estate attorney, or foreclosure attorney to guide you to the right direction.
Web Reference: http://www.karinaleal.com
0 votes Thank Flag Link Wed Apr 9, 2008
Short Sales are an interesting bunch. The biggest problem with the majority of them (at least in my area) are that quite a few realtors don't know how to handle them properly. I would definitely not hold your breath on that property. It is absolutely in the banks best interest to keep you on the hook by selling the dream (what an amazing deal! we'll hold out just another couple of weeks), hope for another offer to come in, and keep collecting (or trying to collect) the (usually mostly interest) payments from the seller. Short sales routinely take between 3 weeks and 6 months to get an answer (if you get one at all - I've had my share of offers completely ignored by banks).

Foreclosures are a completely different story - as the bank already owns them, is paying utilities & maintennance & taxes on them, and is watching them depreciate in value on a daily basis (homes are like gardens...if you don't live in them/take care of them properly, they tend to wilt) - the bank is much more willing to make a quick decision to accept an offer to take the property off of their books.
0 votes Thank Flag Link Wed Apr 9, 2008
In my opinion, I would ask for my deposit back and move on with your life and house hunting opps. Do not get bogged down with 'short sales'. They are a waste of time. Again, this is my personal opinion, but it's also the same good advice I would give to a best friend or family member. Instead of asking your agent/broker to find you short sales, tell them you specifically want to look for BANK OWNED properties only. There is a big difference between the two. You will get an answer for the bank between 24-48 hours in most cases. They are much more amenable to legitimate, bona-fide offers for their bank owned properties sitting in inventory.

Best of luck!!
0 votes Thank Flag Link Wed Apr 9, 2008
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