question about short sale bank approve

Asked by jameskim80, Lakewood, WA Sun Feb 2, 2014

Question about short sale bank approve
I offered bank's list price. This is a short sale condo and seller accepted my offer. So my agent told me the bank needs to approve me then we can do closing. Here is my question. Lets say the bank list a condo for 100k And i offered full bank's list price which is 100k And i told them i will pay cash. Question 1: can the bank say they want more than list price(100k) before they approve me? Or they will just accept 100k which is list price? Question 2: my agent told me it will take 3 months to get a bank approve even i m paying full cash. If you get a loan how long will be take? And is it really going to take 3 month even you are paying cash? My uncle bought a house with loan. And that was short sale house also but it only took 3 month. He didnt pay full cash and he got a loan and took only 3 month. Why i need to wait 3 month even im paying cash? And why/how he moved to new place in 3 month?
P.S Dan, I know you explain me about short sale a lot.

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4
Bradley Give…, Agent, Puyallup, WA
Mon Feb 3, 2014
As I have mentioned in a similar post, the first short sale bidder is often the "guinea pig" to see what the bank will actually accept. The list price is not set by the bank unless the amount has already been revealed through a previous short sale offer that fell through. The all cash offer doesn't really speed up the bank approval process; however it can save a couple of weeks in the closing process once you receive approval. In my experience, the bank approval process can take from 3 to 10 months.
0 votes
Bill Eckler, Agent, Venice, FL
Mon Feb 3, 2014
If this is a "short sale" the bank normally doesn't have anything to do with the "asking price." This is determined by the seller and their agent. Once your offer has been presented to the lender, they need to approve your offer amount or counter with their number. If your intentions are to use this lender to finance your purchase, they will have to of course approve you for financing. On the other hand, if paying cash, you make your offer, then negotiate with the lender(if necessary). Once you have reached an agreement, it's on to the closing. Bill
0 votes
Shanna Rogers, Agent, Murrieta, CA
Mon Feb 3, 2014
Hi Jameskim80,

Question 1: If the list price is not pre-approved by the bank, they can ask for more than the $100K. If the list price was not set by the bank, they will order a Broker Price Opinion or an Appraisal before they approve the short sale and if that comes in higher than the $100K list price, they will most likely counter offer your offer for a higher price.

Question 2: The short sale approval time can vary property to property. It has nothing to do with if you are paying all cash or if you're getting a loan. It has to do with the current owners proving financial hardship, etc. I've had short sales approved in 24 hours and I've had short sales approved in 5 months. Patience is key.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
jameskim80, Home Buyer, Lakewood, WA
Sun Feb 2, 2014
so i m really appreciated that and all other trulia.com realtors.
thank you for answer my questions.
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