First, no agent can with any confidence predict how long it'll take for a lender to approve a short sale. You're lucky if it's 45-60 days. An agent who says 3-5 days is...well, let's be charitable and say inexperienced.
Second, on a short sale, the bank is a contingency. Your contract is between you and the seller. If the seller signed the contract, it doesn't matter if he/she isn't available. (And the listing agent should have gotten a limited power of attorney from the sellers, just in case.) On the other hand, without the seller's signature on the documents, you don't have a contract and most lenders won't even look at the paperwork. So you've got to clarify whether there's a ratified contract (between you and the seller). That's what should have been submitted to the lender.
Yes, you should push your agent. Actually, your agent should, in turn, push the listing agent, who will work with the seller to make sure that the short sale package is properly completed and submitted. And the listing agent should be calling the lender every day or two to make sure that all the paperwork is there. (Lenders all too often misplace one or more documents. And they won't take a look at the package unless all the documents are completed.)
You say you're at day 10 and don't know what to expect. Your agent should have fully briefed you on the entire process, so you'd know exactly what to expect. Basically, expect to be in limbo. The lender could act tomorrow (unlikely), or the lender could sit on your offer and let the property go to foreclosure. Yes, that happens. There is absolutely no assurance that your offer will even be acted on, and if it is, it could be rejected or countered.
Oh, and make sure all your financing and other paperwork is lined up. If an when the lender finally says OK, you may have 10 days or less to make it to closing. Otherwise, the deal can become null and void.
That's it in a nutshell. Hope that helps.
I don't understand the "out of town" excuse. I have communicated with and transferred documents all over the states and the world. We live in an age where that is accomplished with ease.
Perhaps your agent can contact the listing agent's broker since there seems to be a lack of experience on her part. Perhaps some coahcing would move things along. That provides no guarantee, though. If the hold up is really the bank, that ....you must just accept...or withdraw your offer and walk away.
Thanks, Todd Norsted
Michael Doyle Realtor
My second comments are about the mention of no contingency of inspection. I do not know what state you are in, and standards of practice do vary state to state. But even if the house is being sold "as is", you should still have a contingency based on your attaining a professional inspection. If the bank or seller do not wish to be responsible for making or paying for repairs, you should still be protected in the event there are major repairs needed on the house, ie. roof, structural, etc. After receiving the inspection, you should have the choice to take the house "as is" and be responsible for any repairs yourself, or cancel the contract if you find major damage to the property that you do not wish to be responsible for. I am a Realtor in Florida, and that is how it would be handled on our FAR (Florida Association of Realtors) contract.
In this case the Selling agent is the only one you can deal with since the bank will not talk to you about it. Your Buyers agent should really do all the work. There is up to 6% in commission there and if you do not have representation the agent on the seller side should be Super Motivated since, if applicable in your state, Dual agency and collect commission from both sides. I would call the agent Every Day!! Good Luck! / Anette
We are in MN. "Settle by June" is our wish but we know it might take longer than that. With 18% sales nation wide is short sale amount all houses on the market, how can you not to get into one?!
The inspection part smelled very fishy to us. (We still suspect that was not banks idea) Anyway, thats why we adjusted our offer and went back for a third look before we submit our offer. Our biggest concern is like everyone said, because the listing agent is not experienced, she put all those terms herself. Including no inspection and no seller contribution. Later on she found we lower the offer by 26k and don't know how to explain to the bank what had happened. If thats the case (cross finger and hopefully it is not), can the listing agent hold off the offer and come back two months later and tell us that the offer is rejected?