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
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.
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.
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!
Punta Gorda Realty
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!
I can help if you need some advice or a list of approved shortsale or bankowned homes.
Brian S. Sprague
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.
Keyes Real Estate, Mortgage & Title
Mobile: (561) 310-8471
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.
RE/MAX Ocean Properties
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.
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.