The process varies. It depends on numerous circumstances. The main variance is who the investors are for the mortgage(s) on the property you made a short sale offer on.
Bank of America for instance, has a few different 3rd party vendors who handle x%/certain HAFA file negotiations for the loans they service (like REDC, or Loan Resolution Corp). Each appears to handle it a bit differently (the process) based on my experiences. Unfortunately, there is no way to tell you exactly how the process will play out, for you. HAFA offers are supposed to be more streamlined, structured, and and quick. I've heard of getting approval in 10-14 days...and more of an average around 30-45. It just depends from what I can tell.
Whether or not they make a higher counter, will be based *mostly* on what the fair market value for the home is, as determined by them and or their independent verification process, which may utilize a BPO (broker price opinion/appraisal). If your offer is under fair market value, there's pretty good odds you'll receive a counter offer. If you're working with a good Realtor, they should be able to indicate to you where, with respect to market value, your offer stands. Likewise, banks sometimes (go figure) make mistakes, and act on bad information, ie - their value is too high or their value is too low.
Best of luck with your offer!... more
Sorry to hear that your bank has reduced your loan approval. It is really important that you ask your lender the reason for reducing the loan amount so you can proceed in your home buying quest with full information. If it has nothing to do with your income and qualifications then you can always shop around for a new lender. If is was based on your verifiable income and debt ratios then this, in a way, is a blessing. It will prevent you from being among the thousands who bought more home than they could afford and are unable to make the monthly payments.
Now to the other issues covered above.
1. An offer on a short sale is contigent on the seller's bank agreeing to take less than the full amount owed them. The offer should have included a C.A.R. form SSA that clearly states this contingency. Until the seller's lender agrees, you effectively have only a contingent offer.
2. All offers have other contingencies in them. One of those contingencies is the ability of the buyer to get the financing. Obviously, you cannot get the financing, so you cannot remove this contingency and effectively, you do not have a valid offer submitted.
3. Your agent works for you!!!! Too often agents are too focused on their next paycheck and not their client's well being. Your agent has a duty to YOU, the client, to follow YOUR instructions and protect YOUR interests. If your agent will not assist you in submitting a formal cancellation on your offer, then call your agent's broker. They should be willing and able to help you out. Your offer was effectively presented by the broker, not the specific agent you are working with and they need to know that your agent is not willing to help you cancel your offer.
Hope this helps and you are still able to find a home that you can afford, with comfortable payments and a 30 year fixed rate fully amortizing loan. Now is a great time to find these deals as housing prices remain affordable, inventory remains high and interest rates are at their lowest levels in history. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
It can take anywhere from 30-60 days up to 90-120 days! Depends on the area, the lender, the strength of the buyer and the details of the short-sale package.
An experienced agent can help you through it as quickly as possible.... more
Hello there, I will say that is pretty odd for an REO property to not have an answer for 2 weeks. It sounds more like an unapproved short sale to me. We have sold many REO properties in the last 8 months or so, (especially in Castaic) and the longest turn around time that we have seen is about a week... it is usually a couple of days. Assumming that it is an REO property, usually the asset managers don't get personal... especially if there is multiple offers. They will look at the net amount that the bank will receive in order to maximize the return of their individual portfolios. They will also look at how well your individual offer is written, and your ability to close escrow. I hope this helps, and feel free to contact us to answer any other questions via our website. or phone. Best of luck to you, and hopefully we can be of assistance, Sincerely The Scv Agents... more
I appreciate your frustration, however the bottom line is what does the contract state AND what did the first agent do?
In California if you agree to and sign a Buyer Representation Agreement - Exclusive, and the agreement is in force, it does stipulate that if you buy a property shown by this agent that they are the "procuring cause".
The truth is that depending upon the paperwork, contracts, etc. the broker of your current Realtor will be "discussing" the procuring cause basis for who is actually due the commission.... more
Hi Richq - the bank cares about what they net. So if you offer a higher purchase price, but ask for closing costs to be credited back, they really don't care about that gross number, they look at what they'll net after they give you those closing costs - thats your real offer. Lets say your offer is $400k, but you need 10k back in costs. Your net offer is really $390k to the bank. If another buyer comes in at $390k, and they DONT need closing costs whatsoever, its probable the bank would chose that offer between the two options - since a buyer requiring NO help with closing costs, on the average, appears like a more stable buyer financially who has a higher odd on closing the deal, since they must have some $ in the bank to close the deal. Just remember its about what the bank is netting. If your asking for more closing costs than your competition, but you're still netting the bank a higher price, odds are they would take your offer. A bank asking for highest and best is very common, usually in REO deals, not that common in short sales, but it happens, especially when there are multiple offers as you've indicated. Best of luck with everything!... more
Patty, there a number of land listings available up there...can you tell me what sq ft you are looking for and also are you open to Val Verde which is a part of Castaic that is a bit more secluded?? Either way, I could send you what is available through a special website I set up for you. Let me know if you would like me to do that.... more