Deborah, Home Buyer in Florida

I have an offer in on a short sale and my realtor keeps saying that they are waiting on the bank. Now after

Asked by Deborah, Florida Fri Apr 4, 2008

waiting over a month my realtor told me that there are other offers on the table. Is this possible? Our offer was submitted to the bank long before theres.

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Deborah,
"Short Sales" are known to take an exceptionally long period of time. Sadly, you are presently experiencing one of the premier reasons why this is the case. We have heard of cases where people have waited 6-8 months to hear something. It's a matter of creating a pool of interested parties and selecting the one willing to pay the highest amount. The fact that you have a deposit tied up and time invested makes no difference to banks.
In my opinion this treatment is unfair and a reason why today's buyers need to be educated with regards to this form of real estate transaction.
Many of today's buyers being caught up in the short sale/foreclosure hype are missing out on equally good or better opportunities with clean sales. The reality of a buyer's market exceeds far beyond these sales.

Good luck,
The Eckler Team
Venice, Fl 34285
ecklerteam@comcast.net
2 votes Thank Flag Link Fri Apr 4, 2008
Deborah, my colleagues are right. Everyone these days talks about short sales, but hardly anyone mentions they take a very long time. 3-6 months seems common. Paula's advice below is what I would recommend: have your agent set a time limit for acceptance.

This way you are in better control and can start looking at homes which are available right now, not when some bank shrugs its shoulders and hesitantly nods. Good luck and all the best!
1 vote Thank Flag Link Fri Apr 4, 2008
I agree with these answers, and I just want to add simply that the right house is the right house - end of story. I have had my own horror stories as a selling agent and as a buyers agent with short sales and I can say this - a house that is on the market with an agent that hasn't already worked out with the bank and obtained approval by them to market the property as a "short sale", is just a tease - that's not a house that is ready to be sold. Unless the sellers agent is up front about having this "approval" from the bank, then forget it.
James Norton
ERA The Norton Group
Somerville MA
1 vote Thank Flag Link Fri Apr 4, 2008
Your Realtor is correct, short sales are very time consuming and take a good agent and attorney to get this done, In most cases there is little communacation from the time of offer for about 2-3 weeks and buyers get restless, but a good buyers agent explained that from the begining. to there client. Also the client is buying at a extreme reduced cost of purchase.
0 votes Thank Flag Link Thu Jun 12, 2008
Wait about six months and you can probably buy half the banks on short sale. You'd think they'd be happy to get out of the real estate inventory business, but I guess they are waiting for 'things to bounce back'
0 votes Thank Flag Link Sat Apr 5, 2008
If yours is the first offer, then the others go in as Back-ups depending on the status change and must run their course. There are circumstances: dates dependent upon a Short Sale Addendum, was their a kick-out clause in your offer. Short Sales take TIME, PERSISTANCE by the Seller (CALLING THE LENDER SEVERAL TIMES A DAY-EVERYDAY) and plenty of PATIENCE by the Buyer.
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Sat Apr 5, 2008
Yest Deborah,

Sorry, but that is the situation when you are dealing with lenders. Remember banks have their bottom line and yours may not meet the target.
Web Reference: http://www.PhilFowler.com
0 votes Thank Flag Link Fri Apr 4, 2008
the banks are taking very long time to approve the short sale. of course bank is gona accept the best offer
Web Reference: http://onestepuprealty.com
0 votes Thank Flag Link Fri Apr 4, 2008
Why don't you have your REALTOR withdraw your offer if not accepted by xyz time? At least this way, you can free up your deposit and move on to another property if your offer is not accepted.
You could wait for many more months and STILL not get accepted, so there is nothing to lose. In Florida, the law says that up and until an offer is signed and accepted by the seller, the buyer can withdraw and get their money back.

Can't hurt to try! It's worked for me a couple of times. Tell them you'd love to buy this house, but you'd like to move in while you are still young enough to enjoy it ;-) otherwise, you have no alternative but to WAIT until they make up their mind and months later, you may not win the bid.

I agree with Bill, you are probably missing the boat on a lot of great opportunities right now. Take control back and let the chips fall where they may is my .02.
0 votes Thank Flag Link Fri Apr 4, 2008
Deborah,
As long as the bank does not accept any offer yes others can come in. Now usually depending on the banks guidelines they will inform all parties to resubmit there highest and best bid. Of course some banks will simply chose the highest bid. It comes down the that instiutions guidelines.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Fri Apr 4, 2008
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