Jenmarry, I was poking fun at the term "real estate lady" but I understand your seriousness of your questions. I might even refer to her the same way if I didn't want to say her name or even know it... But again I said that in light humor only. I hope you at least got a smile out of it.
So Bruce are you saying the Real Estate Lady is incognito and is really Robert? or vise versa?
As I said before if the offer is accepted it is done... But a back up offer will not affect you or cost you anything. But I wouldn't sit around waiting in hopes the deal falls thru. But if the deal does fall thru, your offer will be on the table for the seller to accept or reject. At least you will have a shot at getting that home.
Consider this when working with short sales going forward... if a realtor has an offer accepted by the seller already...
Ask the realtor if the package has been sent to the bank yet. If it has not yet been accepted, a seller may consider your offer. Make your offer! Ask for your offer to be rejected in writing and signed by the seller, so you make sure your offer is looked at and presented. This will ensure your offer is presented and looked at by the seller. Seller does not have to accept yours, even if yours is more money. Seller should consider strong buyer credentials more important than the offer price itself. There are some other factors to include in your offer to make it stronger also.
We all know all offers are supposed to be presented to the seller, but you want to be sure your offer is considered. Make your offer strong... Meaning, price, terms and your pre approval letter from your lender.
Look for short sales with only one lender... if the home has 2 loans on it it is going to take longer to get your approval. That 2nd lender can foul up the entire process. But if its a home you want, why not try for it. Just understand your tolerance level of waiting. figure 3 months, minimum, waiting if there are 2 lenders or if the home has other liens on it. Such as judgments, tax liens or other clouds that may cause friction to have settled. Ask if a title report has been run. A good short sale listing agent will have title run right away on the property as soon as it is listed.
Don;t let anyone scare you away from 1 lender short sales because of the name of the bank. for instance, I see so many people say,"Bank of America" don't even bother or waste your time" Not true Bank of America is a good short sale lender and has the process together , most of the time, and I say this for all of the lenders out also.. It is up to the negotiators to keep things on track. If the both negotiators are waiting for the other, it will take a long time to process. Be very proactive, not a pest, but ask for updates. The initial process will be:
present your offer
accepted by the seller contracts make sure you put in contract when the pkg will be sent to the bank how many days 5 days is a good fair time frame
package is sent to the lender for approval ask for update.
Bank will correspond with sellers negotiator mostly at this time it will be sellers financial information being considered and it will be assigned to a closing agent or negotiator when full pkg is acceptable
Bank will determine the home's value
Bank will accept or reject or counter your offer. Do not be afraid to counter their offer.
some more time will be waited maybe a week or 2. I always figure 10-20 days in between offers. Most likely if you are waiting a long time, they are preparing approval. Not all the time, but my experience.
Bank may say their appraisal is much higher and a redetermination of the value would have to be disputed.
Very typical... but this can be done if your agents are savy enough. I had 3 of this same scenario last month. My listings. All 3 were redetermined within 3-5 days, accepted and closed. This after they told me 3-4 weeks wait time.
Just don't be afraid to wait but always ask for updates. Not daily , but weekly is good. Ask on Thursdays, this will put agent on notice handling the short sale to call the bank as well. Thursday and Friday, not waiting until monday to call the bank..
Again good luck! Tell the Real Estate Lady I said Hi!
You are doing very good Jenmary by asking here on Trulia.
Lots of good advise from everyone!
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