Snowturkey, Home Buyer in Wichita, KS

Short Sale question & Buyers Contract question

Asked by Snowturkey, Wichita, KS Tue Dec 7, 2010

Im looking to buying a short sale house, we submitted the contract & my agent said the seller accepted. But said we are waiting on the bank to answer. I havent heard anything in 2 weeks is this normal? The banker said he needed the sellers signed contract so they can start but am not having luck getting this.
Also, I dont know if we signed a buyers contract or not. Im not seeing eye to eye with my realtor. they wont call me back, answer emails..NOTHING! What can I do? Should I call the other realtor who has the house? Or wait it out. I dont have much time we are trying to do grants & heard the money is almost gone!
Im tired of not getting answers! What would you do?

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12
Stephani Joh…, Home Buyer, Wichita, KS
Tue Mar 1, 2011
Have been in the same boat for over a month! Unfortunately what we discovered is that selelrs can list the property as a short sale and accept offers without bank approval. The bank then comes back (eventually) with what they feel the property is worth as a short sale. In our case, they wanted almost $20,000 more than the sellers accepted from us. Now our options are to pay up or walk away.... Your realtor is at the mercy of the bank and their middlemen as you are.
0 votes
Ginette Huel…, Agent, Wichita, KS
Tue Jan 11, 2011
You need to contact a full-time and experienced Realtor to secure sound advice.
0 votes
Snowturkey, Home Buyer, Wichita, KS
Wed Dec 8, 2010
We sent the contract over, The seller approved it.. But I never got the sellers approved paperwork, which my banker is needing. nor did I get the property conditioning report. Ive tried asking my realtor about these items and no reponse. We need to get working with our grants & cant because I dont have the sellers signature page. I know the bank has to give approval, but we offered them asking price.
I guess I just want a simple answer like a yes or no they have them.
I was also told about a VPN? I dont know what that is.
The banker told me it can go quicker if we get it all ready and not fall behind.
I wanted to get a inspection but dont want to pay for one & the deal not go thru.
I guess Im just frustrated with the lack of communication.
I really want to call the other agent & say why havent I got this information yet since mine isnt contacting me.

Dont think i had a buyers agreement. What happens if I did & break it?
0 votes
Lisa Cannata, Agent, Falmouth, MA
Wed Dec 8, 2010
Dear Buyer
You should never have gotten involved in a Short sale with a time limit involved. I tell all my buyers upfront if you need a home these are not the type of sales to go after. I've seen short sales take up to 3 - 6 months just to get a response back from the bank and then sometimes the response is not always the one you wanted. I've also seen sellers accept the offer and then they were able to renogiate their mortgage and back out completely. The list of I've seen short sales fall apart goes on and on. That being said some do work out and you can wind up getting a great value, but you need to be willing and able to wait out a long period of time for most. Even if you did sign a buyer contract you certainly have the right to back after speaking with the agent or their manager and asking for a release. Especially if your agent is a slacker and not returning calls (there is nothing worse than getting stuck with a bad agent). There are too many of us who will work hard to inform and educate you about our local markets and the ins and out of how contracts and negotiating work. I would get a new agent that will go the extra mile and get back out there shooping and not for short sales if you have time constraints!! Just my two cents. Best of luck!!
0 votes
Trent Warner, Mortgage Broker Or Lender, Cincinnati, OH
Wed Dec 8, 2010
Patience is key here, hopefully you are in the situation to hang in and let this process work for you. If you don't have the time then end it now! No reason to waste anybodies resources!
0 votes
Cheryl Huebe…, Agent, Wichita, KS
Wed Dec 8, 2010
The most important thing about buying a short sale is to know that it can take 2 to 4 plus month's to get one of these closed. Your agent should certainly be calling you back and keeping you informed, regardless of a Buyer Agency Agreement.... which, by the way, if you have signed it, you should have a copy of everything you've signed so far.
So... be patient w/your agent and understand that it can take a very long time. If you are needing to move quickly... this may not be the best route for you to take. It can be very profitable and equitable to purchase a short sale.... but fully testing your patience!
Good luck to you!!!
0 votes
Daniel Alvar…, Agent, Weehawken, NJ
Tue Dec 7, 2010
One last thing: you'll know the bank is seriously considering the offer if the buyer's agent (or homeowner) has to provide access for an interior Broker Price Opinion (not to be confused with an appraisal, but somewhat similar). If the bank feels the price is right, it will go ahead and agree to the price. If it rejects your offer, you will have a very limited timeframe to submit a new offer. If the bank is being stubborn and your buyer's agent honestly feels that your offer is a good one, then the listing agent may have to resubmit the entire short sale package all over again and wait another 30 days or so.

The final OK is usually not even the bank (most times short sales involve loans owned by bondholders: the bank is simply servicing the loan). It will be an investor who will accept or reject and the bank will carry out their instructions.

To be fair, there are some parts of the country where short sales are not so common. The only reason i have experience is because my local market is almost entirely short sale driven, so agents out here have little choice but to know the ins and outs if they want to pay their rents on time.
0 votes
Daniel Alvar…, Agent, Weehawken, NJ
Tue Dec 7, 2010
I should also note that the listing agent isn't going to call the bank EVERY SINGLE DAY for an update. Loss mitigation departments are incredibly busy. All he or she would do at that point is tick people off. As a rule, an agent wants to be on very good terms with the person on the other end.

And by the way, your mortgage company cannot start processing your mortgage until they have a written approval letter from the seller. The responsibility of getting that letter to you will be the agents involved in the transaction.

Final Note: I hope this is an arms length transaction (meaning you are not related to the seller, nor do the parties involved have any side deals which the bank isnt aware of. You will have to sign this arms length transaction agreement after the bank approves the sale but before it will actually spit out an approval letter.


I hope that helps. Please give me a best answer if it does.

Best Regards,
Danny
0 votes
Daniel Alvar…, Agent, Weehawken, NJ
Tue Dec 7, 2010
Hi Snow,

Short sales can be fastracked for lender approval (if the listing agent knows who to send A COMPLETE PACKAGE* to and forwards it to the right contact person at the lending institution). It is not up to your buyer agent but rather the listing agent and the attorney (depending on state laws) working the file to contact the bank for updates (the bank will not speak to anyone who does not have written authorization from the homeowner). An experienced agent can get an answer (acceptance, rejection, or counter offer) in about 30 days. A newbie could take months before putting two and two together.

However, i should point out that if there are TWO mortgages (first and second liens) then the process of negotiationing between both lenders could take several months. My first short sale with two lienholders took about 7 months (buyers were patient and followed through).


If your buyer's agent wasn't clear in this explanation then it is likely because he or she has little to no experience in these matters. He or she should have explained that it will take some time, however, i have worked with agents that have gotten approvals in as little as 10 days (yes, i was shocked).

Check your contract and look for a closing date. Technically, you can walk away after that date. But until then, this is a legally binding agreement and you will have to wait it out.

You have to be patient with short sales. And funding for most homebuyer assistance programs usually (at least in my state) kicks back in January 1st.

Talk to your agent without driving him or her nuts. I don't want to violate realtor ethics here, but if he or she isnt providing you with answers in a timely fashion, and if it seems like he or she has little to no experience in this arena, then look for a qualified agent who can provide you with quality service once this contract does expire.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Dec 7, 2010
Before panicking, do keep in mind that short sales are by no means fast sales, unless already pre-approved by the lender--therefore much patience is needed as your agent, nor the listing agent may have any new news yet--Rather than calling the listing agent, who works for the seller--contact the broker owner and or office manager of your agent's realty office and express all your concerns--then go from there.
0 votes
Patti MacPhe…, Agent, Wichita, KS
Tue Dec 7, 2010
Short sales can take a really long time and can be very frustrating.You really can not do anything towards getting your loan until you have the Seller's lender's approval and this can take a long time...it is not unusual for it to take months. If you are in a time crunch you might want to retract your offer if that is possible and go look for something else.
0 votes
Snowturkey, Home Buyer, Wichita, KS
Tue Dec 7, 2010
I have went through all my paperwork & didnt see a buyers agreement. But maybe they didnt give it to me last time.
I just cant get a answer from the agent. I know its the holidays, but a yes or no is a easy answer.
I will have to call the listing agent for a update.
Thanks!
0 votes
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