Home Buying in Pennsylvania>Question Details

Copper22, Home Buyer in PA

Frustrated Short Sale Buyer

Asked by Copper22, PA Fri Apr 16, 2010

Hi Everyone, currently in a short sale as a buyer waiting for the bank to approve. My fiance and I are so just SO frustrated with this wait (2 months already!) and no word on what they are doing! We offered what the bank was asking and paying cash, our offer was accepted by the seller two months ago and we've been under contract ever since. Our Realtor told us that the bank has decided to forgive the owner what he owes. So why aren't we closing? Are we really just waiting for someone at the bank to rubber stamp the Ok??

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5
2 months is not a long time! I tell my short sale Buyers this all the time and it as if they have earplugs or something. If you really want the house you have to stay committed and be patient.

With regard to the bank. You must understand that not only does the bank have a process which has been noted here, but it is very likely that the bank NO LONGER OWNS THE HOME (or at least the debt) and whoever the investor is also has to agree to accept the loss. The investor might be the USAA Insurance Company or the Ford Motor Company Pension Fund or some other massive organization that controls millions in investments every day. Now try getting that approved in a timely fashion. It is a wonder they ever get approved at all.

The fact that you are getting positive feedback is a good sign. You will just have to be patient
0 votes Thank Flag Link Fri Apr 16, 2010
You aren't closing because that's not how it's done.

Your Realtor should have explained the process to you. Obvious, he or she didn't.

Wow! A 2 month wait! Imagine how frustrated you'll feel in another 6 months when you're still waiting!

Sorry, I don't mean to be taking it out on you. Pick up the phone right now. This minute. Call your Realtor. Ask: "Why didn't you tell us that short sales can take 4-10 months or more? Why didn't you tell us that a a full price offer on a short sale doesn't mean beans? And why didn't you tell us that banks aren't good at communicating the status of a short sale?"

I'll wait.

OK. You made the call. What did your Realtor say? "I guess I forgot"? "Gee, I didn't know"? "Well, these things can be unpredictable"?

Hmmmm.

At this point, there's little you can do. Just ask your Realtor to give the listing agent a call every week to find out the status of the sale. It won't speed things up, but at least you'll know what the listing agent knows.

Good luck.
0 votes Thank Flag Link Fri Apr 16, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
It's not uncommon for short sales to take 3 or more months to complete. It sounds like you are over the biggest hurdle. Once the bank give the final approval, then they usually want to close right away. Try and hang in there a little longer.
0 votes Thank Flag Link Fri Apr 16, 2010
Hi, Copper!

Unfortunately, short sales have to go through a certain process with the banks, which take a while.

Even if the seller has accepted the offer, the banks have different departments that it must go through before the final OK is given. I have had the buyers end of a short sale and I agree. It is frustrating. We need to be patient. Once it is in the bank's hands, there is not much we can do until it goes through the entire process. We can only check on the progress every so often.

Your agent should have explained to you about the short sale process.

I'm sure once this is over with, you will be happy with your purchase.

Good luck.

Brigita McKelvie
Pennsylvania License #RS297130
Cindy Stys Equestrian & Country Properties, Ltd.
Web Reference: http://www.brigitamklv.com
0 votes Thank Flag Link Fri Apr 16, 2010
Hi Copper,
Even if you give a cash offer unfortunatly when you are in a short sale there is a process that the bank must go through. There are several departments that have to aprrove it. It can be frustrating and seems to be a waste of time. However if a got a good deal it may be worth the wait. Good luck.
Roy
0 votes Thank Flag Link Fri Apr 16, 2010
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