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Candy Carrera, Home Buyer in 93291

what does pending negotiator review mean with a short sale? also, what does it mean when they have a set up

Asked by Candy Carrera, 93291 Tue Apr 7, 2009

date with a short sale? we submitted our offer on a short sale on feb. 18th 09. the sellers accepted our offer on feb. 25th. the listing agent did not get the offer submitted to the bank until march 5th. (why it took so long, i don't know) our escrow officer called the bank for an update on march 26th. they said we should have an answer anywhere from 4 to 6 weeks from the 5th of march. so, she called back yesterday & they said the file is "pending negotiator review" & april 27th is the "set up date". what does this all mean? i'm just trying to figure out how much longer we may have to wait? getting very frustrated! can someone please try to shed some light on this for us?

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I agree with some of the current answers. Please remember that some short sales (even in this climate) are taking 60 to 90 days to receive an answer. Countrywide has taken forever in some cases.

The reason it took so long for the agent to submit the offer MAY have been that the agent hadn't previously helped the owner fill out a short sale package from the lender. It's wise to try to get such a package before receiving an offer, but it's not always done. Filling out all the information (Depending on who the lender is) can take some significant time because they often require bank statements, pay stubs, tax returns, etc etc.

The individual handling this case for the lender probably has a huge stack of them on their desk and has to weed through them to get to your situation. I generally suggest that the agent regularly communicate with the lender in order to determine how the process is going. Sometimes it speeds up the process.

If you want to learn more about the whole process, there's a pretty good book on Amazon by Loren Keim called "Short Sales: Step by Step". It's really designed for the home owner who is under water or the Realtor who is advising them, but it's a decent explanation for anyone, and I think it's $12. I'll put a link under this.

Good luck!

Donny
0 votes Thank Flag Link Sun May 31, 2009
Each bank uses it's own terms when it comes to short-sales so "set-up" date could mean several things. My first question would be which bank are you dealing with (who holds the mortgage loan)? If the file is pending negotiator review that could mean that the negotiator possibly hasn't even looked at the file yet. Many banks are very behind (as stated in the first answer to your question) so if there is documentation missing from the short-sale package submitted that could delay the process.

I have worked with banks that are so behind they didn't even have time to get to our short-sale package until the day before the property was set to be auctioned off on the court house steps & that was with a complete short-sale package submitted from the beginning. So, even if a complete package is sent in by the listing agent it could take a lot of time depending on the volume that particular bank is dealing with.

Since you have stated that it is pending negotiator review then "set-up" could mean that is when they plan to start on the file by ordering a Broker Price Opinion (BPO) or appraisal. If they have already conducted a BPO or appraisal then "set-up" could mean that the negotiator will be reviewing the package and getting it ready to send to the investor(often the bank who services the loan does not actually own the loan or note) for review or countering out any items in the original offer that are not items the bank/investor will agree to.

There are so many different scenarios that could apply. If this is a home you really like and you feel you would be getting a good deal on the home with the offer you made then I would suggest being patient. I have short-sales accepted by banks all the time that are well below market value and much better deals than many of the foreclosures that are receiving multiple offers. I hope this info helps...good luck!
Web Reference: http://www.heatherm.com
0 votes Thank Flag Link Tue Apr 7, 2009
In order to submit an offer that is a short sale (meaning the borrower owes more on the mortgage than the sales price offer) the seller must complete a large package of information that includes a letter of explanation about why they can no longer pay the mortgage, tax returns, bank statements, and so forth. Therefore, it is not unusual for this to take a while to compile this information.

The "negotiator" at the lending institution is overwhelmed with short sale situations with people losing their jobs and home prices falling. That means they need considerable time to consider each property file. They must order appraisals and wait for them to be completed. Appraisers are very busy also. There may be multiple offers for a property. The lender does not typically begin this process until there is an offer to purchase submitted to the lender.

The time frame for a short sale purchase offer can take a few weeks if all of this work has been completed and your offer is one of the later offers of several submitted. In your case, it appears that your offer may be the first offer submitted. If the lending institution is just beginning this process, you can expect to wait from one to three months and even longer in some cases. It depends on where they are in the process. You are actually lucky you may have a response sooner than many. We have had successful short sale closings that exceeded 120 days from the offer to purchase. We have had others that took less than a week. Good luck to you. Hopefully you can be patient because the reward could be well worth the wait.
0 votes Thank Flag Link Tue Apr 7, 2009
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