Hello, My wife and I are interested in a short sale and its turning out to be more difficult then we had expected.

Asked by Davew, Pasadena, CA Wed Nov 4, 2009

We found the house on Redfin and our Realtor also found the same listing on his MLS. After looking at the house a few times and thinking it over, we decided to put an offer on the house only to discover that the bank wasn't accepting offers as the bank hasn't approved the short sale yet. The house has been listed for 149 days at this point. The current owner and that's putting it mildly purchased the house with no money down, and i don't know if this has any effect on the situation. At this point, our Realtor told us to put this house on the back burner. However, Id liked to know if there is anything we can do to coax the bank into pushing this along, as we seriously would like to purchase this house. I feel our agent , although honest and sincere , is uneducated in the short sale process and also the listing agent when confronted by our agent told us to put more money down (we are putting 30 percent down) to coax the bank into giving in. Please assist thanks.

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
Lydia Player, Agent, Dallas, TX
Wed Nov 4, 2009
Dave,
Welcome to the nightmare known as The Short Sale. But seriously, please realize that most short sale offers do not end in a sale.
This post on my blog highlights some of the pitfalls of trying to buy a short sale.
http://lydiaplayer.blogspot.com/2009/05/why-buyers-hate-shor…
0 votes
Emelia Sanch…, , Ontario, CA
Wed Nov 4, 2009
Davew,

Let me clarify some points:

On a short sale the bank does not accept the offer, the seller does.

The bank gives the approval for the price. Example $500K owed to bank and will take $350K = Short sale

Since the property has been listed for 149 days the seller probably has many offers in. The other agent helps the seller put a short sale package together consisting of every document the lender requires and this almost always includes a purchase contract. After the lender goes through their internal process they come back with a price and allowable costs. They may want more money, to not pay for a Home Warranty etc.

If the buyer agrees with all the terms, a short sale approval is granted and escrow opens. If the buyer walks and says they don't want the house then the process starts all over with a new buyer.

The banks concern is how big of a loss it will be for their investors. You putting more money down does not net the bank more money so I don't get that request. Maybe the selling agent does not know what she is doing if this is what she is telling your agent.

The question: Is there an offer already submitted to the bank? Tell your agent to ask. If the answer is yes, then this home is technically no longer available, the other agent should have changed the status to pending.

I hope this information is helpful.
0 votes
Matthew Bart…, Agent, Glendora, CA
Wed Nov 4, 2009
Hello Davew,

The Short Sale process can be a long and tedious adventure. Unfortunately, there is nothing you can do to get the bank to speed up the process. Banks work at their own pace. It makes no sense for the listing agent to ask for more money down when you are offering 30% already. To say that this could speed up the banks decision makes no since as well. If this listing agent truly believed this could help then why refuse to accept an offer from you in first place? I would fathom to guess that there are some offers that have been received by the listing agent. I would also guess that at least one offer has been sent to bank already for their consideration and the listing agent is waiting for a reply. This would explain why the listing agent is not taking any more offers.

With regards to your agent, if you feel they are not experienced enough in the Short Sale process then you must find another agent. Good luck!

Matt
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more