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My husband and I put in an offer for a short sale property a week ago. The seller has signed the offer and sent the offer to the bank (Chase). The family contacted their bank to do a loan modification. The bank told them No and told them to short sale the property. Our real estate agents are telling us this is going to be quick, less than 45 days. Judging by everything I've read I'm not sure I believe them. How will I know if the lender has signed off on the offer? Our real estate agent says we start escrow on Monday and have given us the name of the company, not sure if this means anything.
Should I get a signed copy of the agreed offer? I feel like our real estate agents aren't telling us everything.
Sellers can't send "offers" to the bank for a short sale. They can only send contracts, so they should have a copy and should have given you one. If you don't have a contract, you don't have anything. Real estate must be done in writing and not verbally.
As for time frame, it all depends on how well the listing agent knows what they're doing... it could take 6 months!
Opening escrow does not mean anything in a short sale, other than they have all the information and are ready to move forward. But nothing moves forward until the bank responds with either a counter offer or letter of agreement. One can open escrow and still be waiting for the bank for 2 months, 3 months, and so on. I am assuming by "sending in an offer" you mean you signed a purchase contract and short sale addendum etc. As Falcon mentioned, everything will be in writing in legally binding contracts. How many short sales has your agent been involved in? How many short sales has the listing agent completed? All good questions to ask when contemplating a short sale.
And you should already have a signed copy of the purchase contract signed by both you and the homeowner. When the bank responds with counter offer or agreement letter you should get copies of everything from them also. If you are still sitting there a week later without signed copies of your original purchase contract I would start searching for a new agent.
Last edited by RickTucsonHomes; 09-26-2010 at 09:40 PM..
Yes, I meant signed contract between the seller and I. I do have copies of those. Once we open escrow, can the bank accept offers after mine? Our agent said that the BPO from the bank was out on Thursday, not sure if this is a good sign. We offered what the house was listed for and asked seller to pay 3% of closing costs.
If they already ordered a BPO that is a good thing. The bank will be interested in the market value of the home, that may or may not be close to the listing price. And you are basically asking the bank for 3% off of the listing price. Because it is more than likely that is will be the bank that eats your closing cost not the "sellers". The bank will look at it, run the numbers and see if it works for them.
Once we open escrow, can the bank accept offers after mine?
Again, the bank doesn't accept offers. They only accept contract from the seller. Yes, the seller is allowed to look at other offers. The listing agent is then responsible for getting the best contract to the bank. Many will only submit one at a time. However, if the bank is having issues about your price and the concessions you're asking for, and they see the other contract, they might ask for your to be put aside, or counter yours to what the higher contract is. The seller can execute as many contracts as they want with an attached "back up addendum", but the bank wants all offers higher than what has previously been submitted if they haven't agreed to the terms yet. You're never in the clear, even in a regular sale, until everything is signed.
Our agents are having us open escrow. They claim by opening escrow no other "offer" could beat us out. This doesn't sound right. How soon should we hear after the BPO has come to the property?
I am working with chase on two short sales not trying to scare you but I am very good at short sales just closed one with wells fargo in less than 30 days. However, chase is a different ball game we have been playing their waiting game for months. The got it to the final approval and then switched processors and we got to start all over again. Good Luck honestly I would ask your agent if they can inquire about how many short sales the listing agent has closed. Also, ask your agent how many they have successfully closed that should give you a good indication of their short sale skills.
I am working with chase on two short sales not trying to scare you but I am very good at short sales just closed one with wells fargo in less than 30 days. However, chase is a different ball game we have been playing their waiting game for months. The got it to the final approval and then switched processors and we got to start all over again. Good Luck honestly I would ask your agent if they can inquire about how many short sales the listing agent has closed. Also, ask your agent how many they have successfully closed that should give you a good indication of their short sale skills.
I must be naive. You are in the business, so I take your word at face value. After the signed contract is in the hands of the bank, in the real world what can the buyer's realtor or the listing agent/broker actually do to accelerate things? If the buyer's realtor has a ton of experience, or little experience, how would that experience translate into real world actions that matter once the contract is at the bank for consideration? I mean aside from just inquiring to ensure the case has not fallen through the cracks?
There is really nothing a buyer's agent can do except call the listing agent for updates. The buyer's agent cannot contact the bank at all. The listing agent should have the experience of knowing what kind of "package" the lender is looking for to get a short sale approved. It's all about the package, and the listing agent calling and calling typically makes no difference either. They want the paperwork and the "story" in front of them.
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