Made great offer on short sale. Not asking price though and seller won't respond. What can I do? Can I contact their bank? Its been a month.

Asked by Alsage, Brick, NJ Mon May 21, 2012

They stand to loose $60,000

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18
Valentina Ga…, Agent, sea girt, NJ
Sat May 25, 2013
It is unfortunately the bank
0 votes
Cavine, Home Buyer, Bel Air, MD
Sat May 25, 2013
Before you blame the seller for not responding, it just may be the bank that isn't responding. I was selling my home as a short sale and lost 5 contracts due to the bank not responding. Check with your realtor who will contact the sellers realtor. It just may be the bank causing all the trouble.
0 votes
Cavine, Home Buyer, Bel Air, MD
Mon Jan 28, 2013
I'm the seller in a Short Sale. I've lost 7 contracts due to the bank not responding. I started the Short Sale process 2 years ago and so far the bank is the problem. I'm so sorry for you that you have such a stupid seller. I'm only praying that mine sells! Any documents the bank asked for were at my attorney's office within 24 hours. I've complied with everything they asked for.
0 votes
Striker Inve…, , Holmdel, NJ
Thu Dec 13, 2012
I have a lot of short sale experience. If the seller won't sign there's nothing you can do. Sellers often put a house into the short sale cue to delay foreclosure. As long as they don't accept, the bank just keeps rolling along. They can keep turning it down or delaying it and they stay in the house.

When I present a short sale for a client, I present it with a sheet that shows the comparison to foreclosure: Short Sale benefits the seller and foreclosure & sheriff's sale does not. In this comparison, they realize that short sale is the better course. Better for taxes and their credit.
If your realtor wants this sheet have them contact me at Cheryl@StrikerRealty.com

Cheryl Glover
Striker Realty
Holmdel, NJ
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue May 22, 2012
If you don’t trust your realtor it may be time to back up.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes
Marsha Bowen…, Agent, Livingston, NJ
Tue May 22, 2012
Sorry to hear that your short sale isn't going that smooth. One thing you mentioned that could probably be an issue is that the sellers have no jobs. Sometime when this is the case, seller prefers to drag out the short sale process longer due to the uncertainty of where are they going to live once the house is sold. It's always important that a selling agent addresses this issue up front before putting the home on the market.

Hopefully it will all work out in the end.
0 votes
Mary Petti, Agent, Edison, NJ
Tue May 22, 2012
YOu are welcome. Let me know how things work out :)
0 votes
Alsage, Home Buyer, Brick, NJ
Tue May 22, 2012
Thanks! That is helpful. I will contact my realtor again. It has been over two weeks since we spoke last.
0 votes
Mary Petti, Agent, Edison, NJ
Tue May 22, 2012
ALsage,

Assuming the sellers/agent has submitted the short sale packet to the bank, a short sale is often frustrating, not "short" by any means, and are definitely not for someone without patience. Banks can have 100 or more short sales on their desk to wade through and review. It's up to the sellers representative to keep bringing attention to their offer through constant contact with the bank

It CAN take over a month for the bank to accept, reject OR counter-offer your contract. Delays with the bank can be due to the sellers/agent not having submitted a complete short sale packet. If the bank needs additional information from the seller, this will delay the process substantially (however the sellers agent SHOULD be relating that information to you as well).

If you are using a Realtor and so is the seller, have your agent get on the sellers agent. The Sellers agent should be on top of the bank on a weekly basis to get info on the progress (or lack of) to communicate that to you. I routinely call or email the bank weekly, and even if I have to report... " there's nothing to report. It's still being reviewed byt the bank", I always let the buyers/agents know what's happening so they don't think it's just in limbo.

Be patient and try to get the people working for YOU to get some info from the sellers side.

Just FYI, here's a blog I wrote on the short sale process:

http://www.prudentialnewjersey.com/mary.petti/Blog/Short_Sal…
0 votes
Alsage, Home Buyer, Brick, NJ
Tue May 22, 2012
The offer has not been signed by the bank. It has been signed by the owners. I wish they would just decline the offer if they are not interested. It is very frustrating. Yes, I have an attorney. I am interested in this particular condo because of its location so my hopes were high.
0 votes
Alsage, Home Buyer, Brick, NJ
Tue May 22, 2012
Yes, there are realtors involved and my offer is so high that if I go much higher I won't get approval from my bank. I have a larger line of credit available, but the condo won't appraise for more according to my realtor. I went online for a second opinion. This is my first time buying a home and I don't know how things work. I don't really trust my realtor at this point. Thanks for your help. It just seems silly to me to let a bank keep loosing money when there is an offer out there. I don't respect these owners at all. They are trashy, squatters stalling the process. They shouldn't have put it up for a short sale if they weren't interested. They should have just waited for foreclosure. They don't even have jobs so I doubt that some miracle of refinancing will happen for them,
0 votes
Mary Petti, Agent, Edison, NJ
Tue May 22, 2012
First, as an SFR (short sale and foreclosure certified agent), I CERTAINLY hope you are doing this using a Realtor and that the seller of the house is also using one. WAAAY too much paperwork, and follow up is necessary to make a short sale get to a closing if no one knows what they are doing. Are you and the sellers using an attorney? Perhaps he/she can get some information for you from the sellers attorney or their agent.

Second, what do you mean by the "seller won't respond?" . Have they not entertained your offer at all? They don't really have to answer you at all, though common courtesy says they should let you know if the offer is not accepted.
Have they signed the contract and it's at the bank, but no one's told you if the BANK accepted the offer, which is why you want to contact the bank? (which BTW you cannot. Only authorized people representing the seller, like their agent or attorney, can contact the bank).

Third, I have done numerous short sales, and the banks are not as lenient in the amount they are willing to "lose" but it depends on a few things . Most of the banks I have dealt with will only approve the sale if the house is selling close to, if not AT, current fair market value. They do a market analysis AND an appraisal, so your offer may be too low. What makes you think your offer is a "great offer" when it's not at asking? Maybe the sellers know what the house is worth at fair market and priced it accordingly.
If the sellers already signed the contract, it can take more than a month for the bank to reply one way or the other. It's about the communication between seller and buyer (or their attorney/agents) for updates, even if that update is "it's still with the loss mitigation people".
This really all goes back to both buyer and seller using or not using a Realtor.

Since you should have no access to the sellers personal financial information, you will never know if there is more than one lien (which makes the short sale even harder), and you really don't know how much the bank is going to "lose".
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Mon May 21, 2012
Are there Realtors involved? If so, I would expect that your Realtor is in constant communication with the seller's Realtor and should be able to answer this question. If you are approaching for sale by owner short sales - do you even know if they filed the paperwork or at what point in the short sales process they may be? Is is an approved price? Have they had any other offers? Has the bank turned down any other offers.

No you cannot contact the bank, it is private personal information and as a short sale, the homeowner is still the primary decision maker. If they are being guided by a Real Estate agent then, I would expect that their asking price is in range with current market value (what the bank's expect, but you can at times get it for slightly less).

In my view, short sales are not something buyers should be pursuing without proper reprsentation and that is not just a sales pitch . . . knowledge is key with short sales.

Sincerely,

Francesca Patrizio, Broker Sales Associate, ePro, SRES
NJAR Circle of Excellence 2006, 2007, 2011
Francesca@PatrizioRE.com
732.606.2931 (Cell/Direct 24/7)
0 votes
I am the seller on a Short Sale. I have absolutely no say in what the bank will accept, even though the house is still in my name. As soon as a contract came in, I signed. It was the bank who never responded to my attorney and the buyers walked away. One poor man held on for almost 9 months, only to be told this offer was too low. The bank had raised it by $9,000. I new contract came in. As soon as the bank got it, they raised the price $5,000, but the buyers accepted. Every paper the bank asked for was at my attorney's office within 24 hours of asking. The bank has finally accepted the offer and closing is to be on May 29th. The bank even told us when closing must be! I need a tee shirt.........I SURVIVED THE SHORT SALE FROM HELL.
Flag Sun May 26, 2013
Bruce Kunz, Agent, Brick, NJ
Mon May 21, 2012
Alsage,
You just asked the same question about a Long Branch home, too?? Clearly this is not a normal situation.

When dealing with short sales and foreclosures you've got to cross "T"s and dot :"I"s to the max. If in fact you are real, I'm guessing your presentation is the problem.

Good luck.
Bruce
0 votes
Curtis Lee, Agent, Manahawkin, NJ
Mon May 21, 2012
Alsage,

The seller still retains ownership of the property up to the point where the bank has foreclosed or they transfer the deed to the bank so they are still in control. Even if the bank would talk with you (they won't & can't by law) they can not make the seller accept your offer.

It's almost impossible to steal a short sale anymore, they banks won't accept much less than the market value of the property if anything less at all. I don't know how the property is priced compared to fair market value but if your offer is way under the seller may just not wish to accept. It's a shame but some short sellers have already walked away from the property in their minds and don't always respond in a timely way.

You estimate on the amount of the bank's loss it mostly likely just a wild guess, you have no ideal the legal fees, property taxes the bank has paid on the home, interest or other costs. The amount owed is not really a factor, the market value of the property is the real controlling issue.

Your agent should be able to explain this to you, discuss it with them.

Curtis Lee
Broker~Salesperson
Prudential Zack Shore Properties
Office: 609-597-6464 ext1268
Cell: 609-709-2866
Web Reference:  http://www.MurphyLeeTeam.com
0 votes
Gina Chirico, Agent, Fairfield, NJ
Mon May 21, 2012
You cannot contact the bank because the decision to accept the offer and sign the contract is still the owner's. Unfortunately whatever they stand to lose is not really any of your business. Short sale sellers are usually under a great deal of stress and some confused. They need to sell their home because they are usually behind on their payments or facing a financial hardship; they usually have no where to go; most likely their credit is shot; they know they may be facing foreclosure and there's always some hope in their minds and heart that somehow this will all work itself out. Sometimes it does and sellers are able to modify their loan and keep their home and sometimes it doesn't.

With all that being said, one month is a long time to not hear back from the seller. What did your agent say? Has your agent contacted their agent?
0 votes
Valentina Ga…, Agent, sea girt, NJ
Mon May 21, 2012
Short Sales mean the owners owe more on the house than the current market value. The owners are still legally the owners. They need to pay the mortgage or work out a settlement with the bank. The bank can not make an owner sell the house unless they foreclose on it.

Remember this is a trying time for the homeowners. They are under tremendous stress trying to keep up with payments. Their world is usually upside down. Many times they can not see a clear solution. When someone comes in with a low offer it can be offensive. This is when you really need a good agent who can keep the communication open and the flow of information clear to both sides. If the seller did not answer you then consult your agent. Your agent can inform you on what your options are at this point.

Good Luck
Val Gabela

BeautifulShoreHomes.com
0 votes
Ron Thomas, Agent, Fresno, CA
Mon May 21, 2012
On a Shortsale, how did you make an offer without using a Realtor,
and if you did use a Realtor, why are you not asking him this question,
and if you did ask him this question, why are you not believing him?

If you tried to Low-Ball a Shortsale, the Bank probably won't give you the time of day.

You don't really know how much the Bank is losing; and it really doesn't matter to you.
0 votes
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