Unfortunately there are no "rules", however, it has always been my experience that the bank negotiates all of the outstanding liens prior to the contract settlement. They should be responsible for providing you with a clear title at the closing. In some instances the buyers I have worked with have been asked to contribute some funds in the case of a third position lien....and yes, believe it or not there are some third positon liens out there. Do you have a written Purchase and Sales Agreement? Who wrote it?
Are you represented by a "buyers' broker"? If so, they are not doing their job. If you went direct to the listing agent, although I am sure that they want to get the transaction done, they are representing the seller/bank and owe you nothing as far a negotiating on your behalf or making sure that all of the outstanding debts are the responsibility of the lender or previous owner.
It sounds like you need some representation. If you don't have a Realtor at this point, you may want to contact a real estate attorney in that area for assistance. It would be too late at this point to bring another Realtor into the deal.... more
Sak, there is no relationship what so ever. Hopefully the accepted price is well below the appraisal. If not then the bank is trying to make a killing and you should walk (unless you really love the place and want to live there.)... more
The negotiator for Wells Fargo has to see if your offer fits within the guidelines the actual investor/owner of your mortgage requires. Wells Fargo is unlikely to be the owner and is probably just a mere middleman "servicer" for the actual investor who owns the mortgage. If you're lucky, the investor is Fannie Mae. You can ask your Realtor to find out from the listing agent who the actual investor is on the mortgage.
Also your Realtor should find out if there is a 2nd (Home Equity Line) mortgage. That lienholder will also need to approve the short sale. I see 2nd lienholders require the Seller to sign a promissory note for part of their loss.
So until you get a copy of a written approval letter in your hands from ALL lienholders, you need to keep looking for a property. A lot can go wrong and you may be wasting your time waiting for a short sale that may never close.
So look "only" at approved short sales, bank owned (the best bargains) and regular sales.
Wells Fargo is good, so far.
Only problem is they need 2 appraisals and that also 45 days old.
So if they took 60-70 days to decide they want to order the appraisal again.
Time is no problem for them..... more
The answer is yes. It doesn't mean the house is worth the banks price. You can always counter with a few dollars more than the current offer and say that's the highest and best price. You may be surprised and have them accept it.... more
Wells takes a good 60 -90 days to approve the sale after they have all documentation and allow 45 days to close. However, if your your deal is contingent on a sale of another property there may be more issues. The banks want clean deals and and the more complicated or difficult the transaction , the less likely it is to close.
First Weber Group
Certified Distressed Property Expert
Alice, I agree with Minna's answer. It is very important to start the short sale process as soon as possible. You will need to contact your bank to get the specifics of the process they require. To be successful you may need help navigating the process. Feel free to contact me with any questions at 904.608.0016. Good Luck!... more
Water damage can lead to many other problems down the road,such as mold. Factor in the cost of repairs and time and effort you'll need to invest in it to determine if you are getting a "deal" on the home. My opinion is that unless you're getting a real big break on price then you may just want to steer clear and look at homes that are more move in ready.
Not to mention if you are depending on a mortgage to finance the home you may have issues getting financing if there are health or safety concerns...... more