I am currently involved in negotiating purchase on a short sale, and now the bank has stopped communicating with us .....

Asked by Tigress25, Elgin, IL Fri Jan 29, 2010

When we put our initial offer in, we waited for over 2 months before our paperwork was even looked at -- then we started negotiating price. They wanted 30K more than we bid, and after 2 weeks of consistently going back and forth, we put a final offer in that is EXACTLY what they told us was their "absolute lowest we can go" price. Here's the problem -- Now they won't respond! They won't answer our lawyer's or realtor's calls, and it has now been over 3 weeks since that last communication. So here is my question -- is this normal? Is it normal for a bank to start negotiations, tell you they want to settle within 30 days, and then suddenly STOP talking to you??? I am really getting frustrated, and just want to know what the heck is going on with the house (we really want it!). Any advice would be helpful. BTW - the bank is HSBC.

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4
Shane Jones, Agent, Hoffman Estates, IL
Wed Sep 29, 2010
I'll keep my response to you short...
There are a ton of things that may or may not have transpired and often times, they may be expecting or dealing with what they consider a better offer for them. Unless we're involved in the actual process, it's very hard to tell.
You could have your attorney send a letter saying you are going to retract your offer and or watch the MLS status to see if it goes pending and if it does you know they had other plans in the works.
Again...everything the other agents said is true to some degree but there's is no definite way of knowing until the smoke clears. (so to speak)
Good luck.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Jan 30, 2010
Tigress,

In many respects short sales are the"wild west" of real estate where almost anything goes and you don't know what to expect from one day to the next.

Although seemingly unfair, this type of behavior as fairly common. Until they are committed to paper, banks can and do change with the wind. On the outside, we never know what other options exist for the bank or what their thought process is.

You have negotiated in good faith and met their terms.......it's now time for them to step up and show their worth.

If this is THE ONE it may be best to wait it out and hope the bank comes around.....if you've had enough, have your attorney inform them you are moving on.

Good luck

The Eckler Team
0 votes
Pat & Steve…, Agent, Westlake, OH
Fri Jan 29, 2010
Jennifer Kinzle gave a great answer. But, there is one more possibility for the bank's silence. It is possible that another Buyer made a better offer than you made & the bank may be working through the process with the other Buyer to see if a final approval can be made. You need to push your Buyer's Agent to contact the bank & to push the Seller's Agent to do the same. This is particularly true if you are trying to hit the April 30, 2010 contract deadline for the first time buyer tax credit. And, you may end up needing to revoke your offer on the current home & look for another. What I have said are just my personal opinions. These are all items you need to discuss with your Buyer's Agent.
0 votes
Jennifer Kin…, Agent, Naperville, IL
Fri Jan 29, 2010
Hello
As short sales go, banks are notorious for "changing the deal" in the middle of a deal, especially on short changing the commissions for realtors. Lack of communication can mean your paperwork got lost in the shuffle or that some piece was missing at submission. It is the listing agent who should have submitted a "clean" package to the bank to avoid any delays and they also need to be #1 in calling the bank every single day to be the squeaky wheel. Ask your buyer's agent to call the list agent and try to follow up that way. It is possible that the loan officer may have lost the paperwork completely or was downsized out of the company, but unlikely. I would not expect a short sale to close in 30 days, they are much too complicated and I've seen 60-90 days in Elgin as much more normal. My team has short sale experts if you have further questions.
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