How to buy a house that's a Short sale???

Asked by Willi, Placer County, CA Sat May 2, 2009

Hi everyone,
I am trying to purchase a house in Lincoln,Ca. It's short sale.
Me and my Realtor submitted an offer about month ago.And no answers yet..The check that i gave them,already got cashed and I got letter from assigned escrow agent,so does that mean anything? My realtor says that the bank didn't even excepted the offer yet..
Can anybody suggest me how can we speed up the process?
Can I directly contact the Bank and just ask them?
I don't know what to do?
Please,help!

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Answers

4
Melissa Wigg…, Agent, San Antonio, TX
Sun Aug 30, 2015
Short sales can take some time and definitely require a bit of patience. Your agent should be able to advise you about where you stand in the process.
0 votes
Robert Ternes, Agent, Granite Bay, CA
Sun Aug 30, 2015
Willi,
It can take the bank 72 hours to upload any documentation into the banks file and it takes at least 30 days for the bank to review your offer. There are a number of other documents required of the seller that needs to be in place and reviewed by the bank as well. The number of liens or loans on the house can also create a longer approval time as all have to be negotiated for approval. It has become my practice to request the deposit to be cashed and held in escrow as a sign of good faith to stay with the process.
You can try to call the bank but I don't think that will help as you need a 3rd party authorization from the seller to discuss the short sale. The banks are very protective of their clients information.
Patience is the key. You should be getting weekly reports as to the status. If you are not ask your realtor to call for the information.
Just a couple of questions.
Do you know what banks and how many liens are on this home?
Has the seller submitted all their required documents?
Good luck
0 votes
Teri Andrews…, Agent, Auburn, CA
Tue May 5, 2009
Short sales require a lot of patience on everyones part. Talk to your agent about your concerns, she is your voice to the seller and the sellers agent.
0 votes
Melissa Zava…, Agent, Escondido, CA
Sat May 2, 2009
It sounds like you are in escrow on a property for which there is not final approval from the bank. This could be good because it means that if the short sale is approved, you will not be in a multiple counter offer situation with other buyers. But . . . the waiting is very frustrating, I'm sure. If you really want to property, your real estate agent needs to have a "heart to heart" with the listing agent to find out what is going on. Here are some questions to ask: 1) Have you (the listing agent) confirmed that the bank have the short sale package? 2) Has the bank done the BPO? If so, on what date? 3) Has a negotiator been assigned?

If the bank has done the BPO, then it usually takes no more than 3 weeks for the bank to review the file and get back to the listing agent about the purchase price--whether it will be approved or not. If a negotiator has been assigned, communication should also have occured already. If the listing agent does not know the answers to these questions, then you may need to open your mind to the fact that this agent may not be able to complete the negotiatons in a timely manner.

Also, check with your agent to see if there is a Notice of Default or a Notice of Trustee's Sale on the property. The Trustee's Sale is the auction date, and you are buying a short sale . . . so the auction needs to be postponed. If nobody is conscious of these dates, then the property could be foreclosed right under your nose.

These may not be the answers that you wanted to hear, but I hope that I gave you some concrete information that could help you to make a more informed decision.
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