We are trying to buy a short sale and haven't heard anything from the bank.

Asked by Mary, Altamonte Springs, FL Mon Jul 21, 2008

We put in an offer last month with a preapproval letter that was on the low side with a down payment promise. We haven't heard anything from the bank. We don't even know if they have gotten an appraisal. The house has been in pre-foreclosure for about 2 months. Is it normal for the bank to be so slow? Is this a good or bad sign? Will they go into foreclosure instead of counter offering? Is there anything we can do to be more aggresive with this house? We really like it and don't want to let it slip out of our fingers.

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8
Brooke O'Mal…, Agent, Sarasota, FL
Mon Jul 21, 2008
Assuming there was a single entity(BANK) to deal with you
should be hearing something soon. Make sure your agent
carefully reads the addendum from the Lender/Bank. Many
allow the Bank to cancel up to the closing. If there is a
second Bank involved (second mortgage) then
we introduce another factor. We must have agreement
from all parties in the Short Sale process. All parties
include both Banks/Lenders and the Mortgagor
(Seller) .
The lender will order a Brokers
Price Opinion upon receiving your offer; assuming
your offer is the first. The Broker will prepare
their apprassial and submit to the Lender.
This will most likely be the Lenders counter
to your offer. The 2 month time frame is still
rather early in the foreclosure process. Short
Sales are very difficult and patience is a must.
If you are unable to sucessfully negociate a
contract, and the property goes to auction;
follow the property and possibly you can buy it as
a REO

Hope this helps,
BROOKE O'MALLEY GRI / BROKER
SARASOTA,FLORIDA
SHORT SALE EXPERT
1 vote
Richard Tres…, Agent, Orlando, FL
Sat Jul 26, 2008
Is the house listed with a realtor? Has the realtor changed the status to pending? Are you communicating with the realtor weekly?

In most all cases, banks require that the houses be listed with a realtor. They want to know that the property is getting exposure in the market. A new rule just out requires realtors to mark the listing as pending when they have a contract even if it is a short sale so that no one else is submitting offers on top of yours. The bank should review an offer and make a yes/no decision. Once they have made that decision, then other offers can be submitted if the bank rejected the first offer. As the others have commented, 2 months is a short time in bank years. Be patient and if you find other homes, make more offers....Better yet..look for REO properties in the same area...they are everywhere and prices are as competitive if not better plus you get an answer in 2-3 days. If you need assistance, please give me a call.

Rick Tressler
TCAT Realty
407-421-3002
Web Reference:  http://www.tcatrealty.com
0 votes
Avi Maganda, Home Buyer, 32828
Tue Jul 22, 2008
Sometimes you have to wait, but not always. I think Shortsales are great for r a Buyer that looks to buy at 20% discounted market value. If you are not in a hurry and have a little bit of patience, wait and your reward will be coming soon. In the office I work, a buyer waited 4 months, he was willing to pay in the first month 355k, 4 months later, he close paying only 285k, house appraised 365k still. Last month I got an offer in a shortsale at a pre-approved price, we close last week. Today I have one at 155k, pre-approved and 3% closing costs Buyer's contribution, and I am confident that can be closed within 25-40 days. Some of the agents had made an smart decision to avoid shortsales. I do not blame them. By the way, I can take their referrals anytime. Yes, pre-foreclosures/shortsales are inpredictible but not impossible. In my case if I was buying a house and the seller will give me 20k-40k in savings by waiting 1-3 months to close, I would not mine at all! Good Luck to Everyone!
Web Reference:  http://www.Orlando-Relo.com
0 votes
The Daniels…, Agent, Colorado Springs, CO
Tue Jul 22, 2008
The banks do not seem to have any concept of time when dealing with short sales. 4 to 6 months is fairly common in the Colorado Springs market among others. I have ran into many short sales where the bank does not respond at all (Even with weekly follow-ups). It is a very tough process and not recommended if you are on a time crunch. Foreclosure properties are much easier to work with. Good Luck!
0 votes
Bill Eckler, Agent, Venice, FL
Tue Jul 22, 2008
Mary,

You are experiencing why many buyers today are electing to avoid "short sale" real estate purchases. The reality is that you may be competing with other interested buyers without knowing they are involved. It is common for the process to take 4-6 months.

Good luck,
The "EcklerTeam"
0 votes
Rick Aguirre, Agent, Orlando, FL
Tue Jul 22, 2008
Mary,
That is the downside to purchasing a short sale property,The Buyer can wait unto 12 weeks for an answer and then the offer may not be accepted. consider how many short-sale properties are out there ( 7 out of 10) and how many need to be processed. This process just takes time, Please be patient and understand that after all this waiting your offer may or may not be accepted. Wish I could give better news.
Sincerely,
Rick.
0 votes
Betsie Taber, Agent, Lakewood Ranch, FL
Mon Jul 21, 2008
Banks are notorious for being slow in dealing with short sales. They are not equipped to deal with so many requests and they have very people trained to effectively deal with them. Some are much better than others. The listing agent should be able to give you some feedback. One potential problem with short sales and slow responses is that you are tied with your offer. Unless there is an expiration date in your offer, you might be stuck with the offer and forced to purchase if the bank decided to accept the offer. That's great if you haven't made another offer on another property. But if you have, you could be the owner of 2 homes. YUK! This is why it is always better to use a Realtor to make sure that you don't get in trouble.
Another point that I would like to make is that you would certainly have heard from the bank had you make an offer that covered what was owed to them. Banks are not in the business of owning. They are in the business of lending.
0 votes
Angela McCur…, , Longwood, FL
Mon Jul 21, 2008
Short Sales are very difficult to handle- the bank is in charge no matter what the home owner or the sellers agent does. It is a waiting game - you should be looking at other alternatives just in case this property doesn't come through- your buyers agent should have informed had an "OUT" clause in your offer contract so if you find another house you like you back of this one and move on to the next. There is no magic answer to a short sale other than to try and avoid it- you could be waiting for nothing if they deny your offer. Good Luck - Angela McCurdy, Coldwell Banker, Longwood, FL
0 votes
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