Financing in Dana Point>Question Details

Matt, Home Buyer in 92624

Short sale: will it go faster if I get a loan from the bank that holds the mortgage?

Asked by Matt, 92624 Fri Jul 31, 2009

I have an offer on a short sale, but the bank is dragging it's feet even though they have just been in escrow on the property at the same amount we offered. If I got a mortgage from the bank that holds the current mortgage, would it speed up the process? Could my loan officer work the inside track or something to make it happen? I am working with a broker now, but could easily switch brokers of it would help.

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Hi Matt,

Wouldn't that make sense? Seems to me they would want to keep the loan and rush the process. I think we had all hoped the banks would have this down to a better system...or any system by now. But this requires them to add staff for a department which is a loss to I find that common sense is lacking, and it's a waiting game for the buyers and sellers.

I hope you are waiting for a wonderful home....and that will make it worth the wait.

1 vote Thank Flag Link Fri Jul 31, 2009
Connie hit the nail on the head. It doesn't matter to the bank/lender and ye they are in different departement. As a listing agent I've had 2 loans on a property with the ssae bank. Same bank but I'm negotiating 2 short sale approvals in their eyes. Different departments.
1 vote Thank Flag Link Fri Jul 31, 2009
You would certainly think so! But unfortunately the answer typically is no. If the home is held by Wells Fargo, Bank of America and the like it will make no difference to the loss mitigation department that you are using financing with their company. My suggestion would be to just be persistent in your communications, or through your broker as an authorized third party. Be patient and hold tight. If your offer matches the offer the bank already accepted then you know you are in the ball park if not rounding third base ready to slide in to home base.

The bank is not waivering over your offer but most likely reviewing the financials submitted by the seller for the most recent paystubs, tax returns, bank statements to verify if they would need to order the seller to sign a promissory note or not. (I hope not). This part of the short sale is really out of your control. Just try to hang in there and be ready when they say "GO"! Good luck to you...

Diane Wheatley, Broker
(909) 981-5400

Lived in Dana Point a few years ago and will be back to stay one day. Enjoy!
0 votes Thank Flag Link Mon Sep 21, 2009
No it dosn't make any different. Banks have too many files to look at. The best think you can do is to have your agent send the complete package to the Bank.
0 votes Thank Flag Link Sun Sep 20, 2009
Thank you for all of your answers. Sounds like I keep breathing and stay patient.
0 votes Thank Flag Link Sat Aug 1, 2009
It is true the negotiator that the listing agent is working with doesn't really care where you loan is coming from. Just make sure that along with your loan approval letter you also submit your Mid FICO scores & a statement showing Proof of Funds for your down payment.

As for the reason why your offer, although at the same price as the last buyer, is taking long. The likely answer is this: After the bank approved 'a price' with the previous buyer & that buyer backed out for whatever reason, if it took even as little as 7-10 days for the new offer to come in (yours), the negotiator the listing agent was working with probably closed out the file (which is completely lame) and now it's got to be re-submitted because they have to approve YOU as the new buyer. As to why they do this? Well, if they were REally smart they'd be approving short sales quicker & netting more money.

Now, what I suggest is that you get the listing agent to STRONGLY suggest to whoever he/she speaks to when they call the bank that they keep the file still, in this later "phase", it may just be called "phase 2". Have the listing agent call the bank twice per week to move the file along.
0 votes Thank Flag Link Sat Aug 1, 2009

Believe it or not, I just had the exact opposite happen. The buyer's loan officer ordered a drive by BPO when they first received the loan app. When I called the short sale department to inform them that it was over 30 days and I had not heard from an appraiser yet, they told me there was a drive byy BPO in the system. Then the buyer's loan officer ordered a full appraisal once we were assigned to a negotiator. When the short sale department saw that the appraisal was ordered and they cancelled their order. Then the buyer's loan officer decided to postpone her appraisal, since we did not have short sale approval. This totally confused the short sale department and they were on the verge of closing the file, since the note on the postponement of the appraisal showed that it as at the instruction of the listing agent (which was correct, since I advised the buuyer's agent to hold off on spending her client's money until we had written approval of the short sale). I had to jump through hoops to keep the file open and get the short sale department to order their own appraisal.

So, instead of speading the process, it actually slowed it down. Go figure. Thank goodness we are now back on track. Like the parties to this transaction, never forget, Dare to Dream.

Shel-lee Davis
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Fri Jul 31, 2009
Hi Matt,
I am quite sure that one department has nothing to do with the other. Who ever is the negotiator on your short sale for the bank has nothing to do with a rep that would handle your new mortgang. In most cases they are not even in the same state! It will most likely not help to switch. You need to remember that short sales have, in this Realtors humble opinion, have no common sense to them what so ever. One would think that the bank would just accept the offer and be done wiht it. That is not the case. We are seeing more and more short sales approved; but still they are taking many months to finally see closing on them. You really need to be VERY patient if you wan to succeed in this process. I wish you the best of luck with your short sale!
Connie Bramble
0 votes Thank Flag Link Fri Jul 31, 2009
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