I have a question about the short sale process

Asked by Cbg_37, Pinole, CA Fri Mar 4, 2011

I made an offer on a short sale home in California. The bank countered, and I accepted. The seller's Realtor says that now we just have to wait for both lenders (ING on the first, Chase on the second) to approve it (it was approved in December for a higher price, but the buyers walked).

I drove by the property today, and it has a foreclosure notice on the door that says it will be sold within 20 days. The seller's Realtor says she just found out about the date, but that it isn't until end of April, and we should have an approval before then.

My question: How can I verify any of this information? This Realtor also insisted, as part of an addendum, that we use their Title Co, and says it's because ING makes that a requirement. I know that's illegal, and I'm just concerned I'm not getting the info I need about this foreclosure to make an informed decision about waiting or not.

Any help would me most appreciated!
my best,
cbg

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Tim Moore, Agent, Kitty Hawk, NC
Fri Mar 4, 2011
Bottom line, the bank is able do do anything they want to and they can require this or that, nothing you have mentioned is new or unusual and not illegal.

It sounds like you and the seller/owner made a deal and not the bank. Until they sign something there is no contract and the bank can foreclose if they want to. It is often very difficult to get answers and that is why so many short sales fall apart, the buyer just gets tired of waiting to hear something. You have an even more difficult short sale since 2 lenders are involved. It won't be quick and it will be frustrating.
1 vote
Bill Eckler, Agent, Venice, FL
Sat Mar 5, 2011
cbg,

Extended amounts of time, questionable information, and frustration are common elements in a "short sale" experience. It is the exception when things happen otherwise.

As previously stated, nothing as explained sounds out of the ordinary but you really have no commitment until you have an agreement signed by both lenders.

Best wishes,

Bill
0 votes
dave, Agent, Charlotte, NC
Sat Mar 5, 2011
Your dilemna is not uncommon. It is customary for the bank to proceed forward with a foreclosure as they are negotiating a short sale. They want to protect their interest if the short sale does not close. It keeps them from having to start the process all over again.
generally the rule fo thumb is within five business days you shoud receive a written approval from the bank for the short sale with the numbers agreed upon. In that letter it will inform you that the short sale has been put on hold pending the close fo the sale. They will have a date they want you to close by; or the short sale will be nullified (unless you can get an extension).
You need to make sure your agent is on top of it with the lsiting agent or the bank to ensure they are going to put a hold on the foreclosure sale....
using the banks title company is not uncommon. They have done most fo the paperwork already and are very familiar with the property and liens. They can help make the process cleaner and smoother.
Web Reference:  http://www.davedicecco.com
0 votes
Suzanne MacD…, Agent, Succasunna, NJ
Sat Mar 5, 2011
It's common for the bank to move forward with both the short sale and the foreclosure at the same time. That way if the short sale falls through they haven't lost any time. It is also common for them to put the foreclosure sale date off over and over again at the last minute. I do not know California law in this regard or process, but here all it takes is a fax to the Sheriff's office on the day before or eve the day of the sale to put it off. It's nerve wracking I know but not at all unusual.

Make sure the listing agent is in close contact with both banks to make sure things are moving along smoothly, (or as smoothly as possible, at least) and that the sale date will be put off if necessary to allow the short sale to close. And, as difficult as it sounds, try to relax. This is the reason the listing agent seems so non-challant, we've gotten so used to the insanity it just doesn't get us agitated any longer.

Good Luck!
0 votes
Aaron Taylor, , Chicago, IL
Fri Mar 4, 2011
CBG short sales are like snow flakes, no two seem to be alike! (although in California, this analogy proably falls a little short ) but it seems to go that way. The first answer was sound. You might want to ask, though, if the agent is doing the contact (negotiating) with the bank, a short sale negotiating company, or if it is being handled by an attorney. Not that it makes a big difference to you, but it does let you know who is picking up the phone and calling ING or Chase. The more direct the contact you are getting, you might feel a little better with the replies. A few of the banks have gone to a system for everything from initiating the short sale process to getting the deal closed. To the best of my knowledge, neither Chase nor ING are currently using this standardized system.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Pinole Zip Codes

Email me when…

Learn more