Carlmh, Home Buyer in West Palm Beach, FL

I found a house I like a lot and it is a short sell. The asking price is 239.900 I put in an offer of 246.000

Asked by Carlmh, West Palm Beach, FL Sat May 9, 2009

and have heard nothing for the past 3 weeks. Why would the bank let this linger and not jump on the offer?

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16
Should have made a $239,900 offer it only alerts the bank that the listing agent listed too low. Anyways Shortsales take a long time
Web Reference: http://mypbchomes.com
1 vote Thank Flag Link Wed Dec 2, 2009
HI Carl -

short sales are very mis-leading - they are anything but short. It can take 3 wks just to have the paperwork go through the system and get uploaded into the processing center. Ask you agent what his/her process is for working short sales & when you should expect updates. for both my buyers and sellers I try to update them at least once a week - even to say that there has been no movement. Also find out who the lien holders are. Each bank has a different time line -- this can help you guage your mind & patience for how long it might be. I have had short sales take as long as 9 months & as short as 2 wks -- its in the bank's hands & the listing agent being on top of it. Good luck
Christine
0 votes Thank Flag Link Fri Jul 16, 2010
If it's a short-sale then it can take anywhere from 3 to 6 months.

Your offer should always be based on the current market value.

The bank has to review the sellers package. They also have to get an idea of what the property is worth.

There are procedures the bank will follow, which can take some time.
0 votes Thank Flag Link Fri Jul 16, 2010
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
MVP'08
Contact
If you're working with an agent, fire that agent. You should never offer higher than the listing price on a short sale. The listing price is an entirely arbitrary figure that has nothing to do with what the bank will accept.

Rescind your offer, then make a new offer at $210k or so. The bank will come back eventually with an offer they will accept. Note the "eventually" part of that- it will likely take months.
0 votes Thank Flag Link Wed Jun 2, 2010
Hi Carl,

All good answers here. Short sales take a long time even with a higher than full price offer. I know I have one that I have been waiting on since March. Others I have waited on and lost because they went into foreclosure because the sellers could not be contacted by the bank and for other reasons.

Hope you get the property. Good Luck!

Genevieve Ramachandran
Punta Gorda Realty
0 votes Thank Flag Link Tue Jun 1, 2010
We are finding that a lot of buyers do not understand the short sale process. Part of what we do in our initial meeting is to see what a clients needs are and then match the right situation to the client. There is a process that each lending institution has to follow and understanding what is normal allows the buyer to go thru the process easier. We've had approvals in 7 days (highly unusual) to months. Our team understands short sales we have a 98% success rate at getting to the closing table.
Web Reference: http://www.treugroup.com
0 votes Thank Flag Link Sun May 30, 2010
Definately want to have a short sale specialist in West Palm Beach to work with
0 votes Thank Flag Link Sat Sep 5, 2009
The asking price has little or nothing to do with what the bank WANTS. The bank still has to process the offers and many lenders require multiple offers still.

you have to understand that the bank is losing a LOT of money in this and so they proceed carefully. Also, the bank does not have 100% right to do a short sale - they have to prove that there is no way for that seller to pay off the debt first! Sometimes the person is hiding assets and then the bank disqualifies the short sale!

Also - asking price is not the entire contract - what are the TERMS?

Don't think you're alone - banks move very slowly and deliberately - and that's not a good thing. Don't take it personally - just make sure your agent is staying in touch weekly with the other agents and getting answers. But don't think that 3 weeks is a long time - there are short sales out there that have taken over a year!
0 votes Thank Flag Link Thu Sep 3, 2009
If you would like something that moves along quicker, look for foreclosure or approved shortsales only. Also, you might look for auctions!

I can help if you need some advice or a list of approved shortsale or bankowned homes.

Brian S. Sprague
Illustrated Properties
561.379.3993
Brian@SellWPB.com
Web Reference: http://www.ipre.com
0 votes Thank Flag Link Wed Sep 2, 2009
Hi Carl,

If you are looking to close quicker, then you need to buy a house that is not a short sale. The bank will wait to see what other offers are submitted before accepting any offer. This can take months and that is why you have not heard back.

I would recommend looking for foreclosures, which close much quicker and are just as good of a deal. Also, if you are a first time homebuyer that is looking to take advantage of the tax credit then you might be cutting it too close to the deadline to be buying a short sale.

Give me a call if you need advice.

Best Regards,
Kris Persaud
Realtor
Keyes Real Estate, Mortgage & Title
Mobile: (561) 310-8471
krispersaud@keyes.com
0 votes Thank Flag Link Tue Aug 25, 2009
I agree with all the answers. There one thing I really want you to consider when ordering title insurance. Ask for the EXPANDED coverage, not basic. If the title comany will not give you expanded coverage, this is a red flag! If all you get is the basic title, it could turn around and bite you later down the line.
0 votes Thank Flag Link Thu Aug 20, 2009
If it's a shortsale & a really good deal you have to be in it for the log haul. Our office's average approval time on a shortsale is 55 days with our range being between 3 weeks & just over 5 months. Also was your offer combined with a shortsale addendum, signed by the seller & returned to you? If so ensure you were not only the highest & best offer the seller received, but also the only offer that was submitted tothe bank. If not you might wait for awhile only to find out some other buyer got the home.
0 votes Thank Flag Link Thu Aug 20, 2009
Carl:

There could be several reasons why the bank did not accept your offer yet:
- listing price was set by the realtor too low, do you know how much the owner owes the bank?
- second and third liens
- the bank has not filed a lis pendens, the owner might not be behind with payments but wants to sell
because he/she is upside down.
- bank waiting for better offer, does your short sale addendum allow for multiple offers?
- bank is overwhelmed with short sale proceedings
- paperwork (owner hardship package) is incomplete

Be prepared to wait 60-90 days for an answer.

I have a list of bank approved/pre-negotiated short sales on my website. The buyers walked away because the bank took too long. These short sales will be truly "short" transactions.

Regards,
Eva Pusich
RE/MAX Ocean Properties
(561) 635-2278
Web Reference: http://www.EvaPusich.com
0 votes Thank Flag Link Sat May 9, 2009
it is entirely possible that the person doing the processing is a non salaried person with hundreds of files to go through & no real interest in the bank.
0 votes Thank Flag Link Sat May 9, 2009
Carl,
Keep checking with the listing Realtor on the property. The banks do take a while to process the short sale files, but many times there is a missing document in the short sale package.

I'd have the Realtor check with the bank every couple of days for a status update.

PS. Most short sales take at least 60-90 days.
0 votes Thank Flag Link Sat May 9, 2009
Carl,
Welcome to the world of short sales. This is the problem. the banks take forever to give you an answer. My guess is they are waiting for a better offer. Lets hope yours is the best one they receive and accept it.
Good luck
Genny
pgrealty@hotmail.com
http://www.puntagordarealty.com
0 votes Thank Flag Link Sat May 9, 2009
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