Question on short sale - The first buyers backed out while in the process, I'm next in line, the backup offer

Asked by Kathleen, San Gabriel, CA Wed Jun 29, 2011

My realtor says that since the short sale process started already, it shouldn't take too long. We are told the bank wants 268,000. But the neigoiator says he can work with 260,000. That's my max. The realtor selling the property says she is gonna submit our offer at 260k and also submit the worth of the house that shows it's only worth 260k. We got counter offered to submit $5000 for good faith and the contigencies are: inspection 7 days, appraisal and loan 12 days starting from date of short sale approval. How long will the short sale approval be? My realtor hopes it's 20 to 30 days.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Shane Milne’s answer
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Wed Jun 29, 2011
12 days for appraisal & loan contingency? Yeesh, that is very quick, especially since the appraisal can't be completed until you have short sale approval (the appraiser needs those details to finish the appraisal). Personally I would ask for the standard 17 day contingency like there is in 99% of purchase contracts here in California. Congrats on your backup offer looking like it'll be accepted though.
0 votes
Sally Grenier, Agent, Boulder, CO
Wed Jun 29, 2011
I'm surprised your Realtor is putting number on it. 20-30 days is possible, but with short sales, it can take months. 3-6 months is not unusual. A lot depends on the bank and where they are on the process. Just because you're the 2nd offer doesn't necessarily mean that all the work has been done. Some banks want to start back at square one.

Do not do anything until your get short sale approval, then once you get SSA, you can move forward with inspection, appraisal, etc. As Sandy says, 7 days for inspection ans 12 for appraisal isnt much time. With short sales, you get 30 days after SSA to get the deal closed. Can your lender get an appraisal and loan approval after only 12 days? Sounds pretty tight. I would counter back with better time frame.
0 votes
scott farmer, Agent, Scottsdale, AZ
Wed Jun 29, 2011
Doesn't seem like you are getting enough time for your appraisal and loan. In AZ it takes longer than 12 days to complete the loan process especially if it's an FHA loan. You may want to discuss this with your agent and make sure you are not being set up to fail on closing this property if you indeed are approved for the short sale. Plan on 3-6 months for the short sale to close. It still seems to be taking a long time even with some of the new programs in place.
0 votes
Arthur, , Pasadena, CA
Wed Jun 29, 2011
It really depends on the bank. Some work much quicker then others. As far as you approval coming quicker because of the previous buyer, you probably will have to wait close to the same time. I have been told the same thing by many listing agents and end up waiting 3-6 months to close

-Arthur
0 votes
Search Advice
Search
Ask our community a question
Home Buying in San Gabriel Zip Codes

Email me when…

Learn more