Under Contract for Short Sale in Bayonne, NJ

Asked by Danielle R, Bayonne, NJ Tue May 3, 2011

I am currently under contract for a short sale in Bayonne, unfortunately it was not pre-approved. The lender is Bank of America, does anyone know how long this process takes? And doesn 20% down help speed up the process? I am really hoping for this home, fell in love with it. Also information online has stated that homeowner has been in default for about a year, and is not currently listed as a LP.

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21
Carl SanFili…, Agent, East Brunswick, NJ
Sun Aug 26, 2012
Glad it all worked out for you!
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Fri Jul 29, 2011
Hi everyone, just wanted to give you all an update. After 3 months of the banks going back and forth, the 2nd lien holder was requesting 17,000. We never received a counter during this whole time either. My father being the great man he is, went behind everyone’s back and had my lawyer contact the 2nd back offering 6,000 to them. They agreed and so did first lien. I close August 10th. Thank you all for your advice and input, it helped during this stressful time. In the end it was completely worth it! The home inspector told us we got a great deal! Thank you all!
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Mon Jun 20, 2011
Thank you everyone, I spoke to my lawyer yes the seller got turned down on the HAFA...2nd Lien is about 40k+, Seller is still negotiating with lien holders :( . The 2nd Lien holder has been negoiating for 1 month already. I was so excited about this home, but it is not looking too good :( We would give an extra 5-10 grand in a heartbeat
0 votes
Diane Maxon, Agent, Jersey City, NJ
Fri Jun 17, 2011
In New Jersey you are in contract after SELLER accepts your offer and you complete attorney review. I know the agents mean well, but probably best to answer questions in your geographic area since laws vary from state to state.
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Gerard Carney, Agent, Spring Hill, FL
Fri Jun 17, 2011
No do not tie up money senselessly, earnest money if need should be a token amount, something you can live with out for a period of time. You are not under contract by the way until the bank accepts the offer, the seller is powerless in this sale so you could be waiting 90,120, 150 days even more if the offer and the short sale is missing documents it could stay in limbo for a while! I hate telling people that, so many buyers get attached to what looks like a good buy and get worn down by the short sale process!
0 votes
Kenneth Lazo…, , Hillsborough, NJ
Fri Jun 17, 2011
Danielle,
The seller can still proceeded with a short sale. You'll have to ask the seller if he's still trying to get it done. Since his modification was denied he can now re-try to negoiate with the 2nd Mtg. holder. Again only the seller and his lawer have the answer to you question.
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Mary Petti, Agent, Edison, NJ
Fri Jun 17, 2011
Danielle,

Here is an informative article about HAFA and HAMP...

http://www.realtor.org/wps/wcm/connect/8ed80b00412373d29bb6b…

From what I read, it seems if they are denied a loan modification they CAN procede with a short sale...
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Thu Jun 16, 2011
Hi everyone, spoke to my lawyer today. Looks like Homeowner applied for HAFA and was denied. Does this mean seller is most likely going to back out all together? Thanks for all your help. I bother my realtor a million times a day so thank you all for letting me bother you! lol The advice is great and extremely helpful!
0 votes
Diane Maxon, Agent, Hudson, FL
Mon Jun 6, 2011
Danielle,

If you are not currently working with a realtor, I would be more than happy to help you with your search for another home. Please call me if I can be of help.
Diane Maxon
201-780-6594
0 votes
Kenneth Lazo…, , Hillsborough, NJ
Mon Jun 6, 2011
Sorry, to hear that you received the negative news about your dream home. On the other hand there are many homes on the market today and rates have fallen once again. I'm sure you will come across another home soon. Best of luck with your search. If you have any questions in the future please feel free to email and ask.
Thanks,
Ken
Kenneth Lazowski | Mortgage Loan Originator | NMLS #34064
Real Estate Mortgage Network, Inc.
425 Amwell Rd
Hillsborough, NJ 08844
O: 800.999.2489 ext. 7976 | F: 908.450.1419 | C: 908.512.1436
E: Klazowski@remn.com | http://www.remn.com
W: http://www.kennethlazowski.remn.com
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Mon Jun 6, 2011
Just found out that 2nd lender is requesting 30-40,000. Looks like my dream home will be impossible to have.
0 votes
Kenneth Lazo…, , Hillsborough, NJ
Tue May 31, 2011
From the info you posted your analysis of the situation sounds correct. Looks the 1st mortgage co is ok with the offer, but the 2nd isn't ready to accept the offer at this time. Your Attorney might be able to get you some more information by requesting it form the seller’s attorney. The info that would help you is what the balances are on the two mortgages. This will help you see what the Lenders are going to have to take as a loss. Depending on the size of the loss the 2nd maybe working on a counter offer? Hope this helps.
Ken Lazowski
REMN
800-999-2489@7976
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Wed May 25, 2011
Update, 1st lien on home is ready but seller has a little road with the 2nd lien. Can someone explain this to me? Does this mean 2nd lien is not approving short sale? And also does it mean that 1st lien excepted our offer? This is so confusing lol
0 votes
Mary Petti, Agent, Edison, NJ
Wed May 4, 2011
You are very welcome !!! I hope it works out for you. Just FYI, check out my blog on the short sale procedure...

http://www.trulia.com/blog/mary_petti/
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Wed May 4, 2011
Thank you everyone for your input, it has been a great help and it is very appreciated!
0 votes
Kenneth Lazo…, , Hillsborough, NJ
Wed May 4, 2011
Danielle,
Mary is correct the 60 days for Attorney review is for your protection. I just closed a short sale for another client, His Attorney has the clock restatred after trhe bank approved the short sale to give them time to close. While, we were waiting for the Bank Approval we were able to get the client an Mortgage Commitment. This can aslo be presented to the Bank and may help speed the approval process since they know that their is a movivated and quailfied buyer ready to close. Hopefully, your short sale goes smoothly for you.
0 votes
Mary Petti, Agent, Edison, NJ
Wed May 4, 2011
Danielle,

Even tho your attorney put a 60 day limit on the approval of the short sale, this will NOT make the bank move any faster.
If the 60 days comes and goes, and it is very possible it will, if you are not willing to extend the timeframe you will risk losing the house.
The banks don't care about deadlines put in a contract during attorney review. They handle the cases individually, according to case load and workload.
Having an agent on the sellers side who is familiar with short sales and is diligent with their correspondence with the banks helps but still doesn't get them to move that much faster.
Also remember that not every short sale eventually gets approved. It's the risk you take when purchasing a short sale.
I have had them approved in 90 days, yet am working on one now which had a contract early January and is STILL not even close to approval (for varrious reasons).
Downpayment has no bearing on the approval. Sales price, the amount of
0 votes
Danielle R, Home Buyer, Bayonne, NJ
Tue May 3, 2011
Thank you everyone, does it help that my attorney has put 60 day limit on our contract, attorney review is also done.
0 votes
Lisa lagesch…, Agent, Olympia, WA
Tue May 3, 2011
This process can take up to 10 months. Bank of america and or countrywide is the most overwhelmed bank with such a large amount of short sales and foreclosures. If you love the house you may just be in for the wait. I had a client in the same situation, no other house would do for them and it took us 10 months from the day of writing offer to the day of closing.
0 votes
Kenneth Lazo…, , Hillsborough, NJ
Tue May 3, 2011
Danielle,
Short sale times vary, but most short sales can take 60 to 120 days or longer to complete. Since most Lenders look at each short sale on a case by case basis it is really difficult to give you a better estimante. Here at REMN we have just created a new division Short on Sale to help all parties with the process. If you want give me a call and I can work with all parties to get the file reviewed by one of our experts, and then we can provide you with more specific feedback. Banks are approving tons of short sales every day. If you chose to work with me for your financing we can submitt your Short Sale package with a full mortgage commitment.

Kenneth Lazowski | Mortgage Loan Originator | NMLS #34064
Real Estate Mortgage Network, Inc.
425 Amwell Rd
Hillsborough, NJ 08844
O: 800.999.2489 ext. 7976 | F: 908.450.1419 | C: 908.512.1436
E: Klazowski@remn.com | http://www.remn.com W: http://www.kennethlazowski.remn.com
0 votes
Diane Maxon, Agent, Hudson, FL
Tue May 3, 2011
This process can take up to 6 months or more. The amount of the down payment has no bearing on the length of time it will take to get to closing. If you are willing to be patient, you will eventually come to a closing.
0 votes
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