Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
this is a great site and forum. I was hoping perhaps someone on here is a real estate agent or has more experience in this that i do and can offer their opinion.
I put in an offer last week on a short sale property. Apparently, some months back someone else had put in a very low offer. After the long wait period that normally comes with a short sale, the back countered the offer with their own number. the buyer raised his offer but the bank stayed at their number and said they will not go any lower. The buyer walked and the agent put the house back on the market at the number the bank said they would take as a rock bottom offer. I came in, and in an effort to get this done i put an offer on the house at that number.
Its now been a week or so and i was told that he uploaded the offer into bank of americas equator system? now it supposed to be a waiting game. Anyone have any clue if the process starts all over and this will take months? or do you think that bc of what happened with the last offer - most of the work has been accomplished and this should only take a few weeks?? or is it anyones guess all together! lol
The agents are telling me it should go fast, but i dont know if can believe them bc they know if they told me this will take 4-6 months i would prob walk.
any help or advice would be greatly appreciated!! thanks!!!
I think you overpaid. Don't listen to what the agent told you the bank's lowest number is. Here's a not-so-big secret in the industry: AGENTS LIE! You wouldn't believe the verbal gymnastics I had to hear when I confronted one with the truth. Not only are they working for the seller (not you), but banks will negotiate depending on how strong your offer is and I'm not just talking about price. Come in with all cash, close quickly, no inspection, etc. Truth is, if a bank really knows what it's doing, it knows there is a significant decline coming and they want to get rid of it as soon as possible. Low ball them and stick to your guns... be willing to walk.
Make an offer based on what the house is worth today. Everything the others wrote is true. There is a lot of gaming that goes on around short sales. Most of it has to do with excruciatingly long wait times and the value of the house.
Ask your realtor what the house is worth and learn what is a fair offer considering the condition of the house, etc. See what other sales have gone through in that neighborhood in the last 6 months or so.
Then turn in your offer and wait. Every now and then, a lowballer gets lucky but most of the time, the house goes for close to what it's worth.
Oh.....and never stop looking till you get one. Always put those clauses in your offer about expiration of the offer. Then if they decide to accept your offer months down the road, they can't hold you to it.
Don't expect all of this to be logical and make sense. I've bid on shorts and seen them sell for LESS than I offered. And my offer was cash.....you can't get much better than that.
thanks for all the replies. Ive done all the due diligence. Based off of comps and all the other info - i know this price is fantastic. Its not a teaser rate. i am not concerned about that. was just looking for some info on the turn around time. Was hoping someone just closed a short sale thru bank of america and could give me some info on how long it took. I have confirmed stories of 6 months and confirmed stories of 3 weeks.
thanks for all the replies. Ive done all the due diligence. Based off of comps and all the other info - i know this price is fantastic. Its not a teaser rate. i am not concerned about that. was just looking for some info on the turn around time. Was hoping someone just closed a short sale thru bank of america and could give me some info on how long it took. I have confirmed stories of 6 months and confirmed stories of 3 weeks.
Have a deal in less than a month if it is in Equator and accepted. Might take a little longer to actually close...but once you have the bank letter you are there.
Equator is mostly rational.
Equator prices are often quite rational. Do your homework...but don't believe they are inflating...not that kind of system.
Generally speaking, a new offer with a new purchasers name starts the process all over. If the last BPO was done within 90 days, they may be able to re-use it, if it's older than 90 days they will almost always order a new one. After the BPO is received and if your offer is within BPO ranges then it will go to the investor for review unless the loan servicer is a delegated approver and can thus accept or deny your offer without working through the investor.
A lot of how quickly it goes depends on the sellers agent, how knowledgable they are, and how hard they are working. I've heard of good agents determining who the investor is (using a QWR - Qualified Written Request) and working through both the servicer and the investor directly. If the sellers agent sits around and waits for the servicer to get back to them, the deal will likely never get done.
A lot also depends on if it has a 1st + 2nd or just a 1st. We're in the middle of our 2nd short sale offer. The 1st one took 5 months before the 2nd refused to release the lien without a deficiency judgement so the seller backed out and the deal died. The most recent one that we're still in the middle of, the offer was accepted almost 3 months ago. Similar to you, the old buyer had walked and they had a written approval they were going to "slip is into", which didn't happen. They had to order a new BPO and it just came back 100k over our offer price (even though there was an old loan approval at our offer price and the BPO was good at that time). If we close, which is unlikely, it will be at least 3 more months.
Good luck! The listing agent is key.
Quote:
Originally Posted by three1oh
Its now been a week or so and i was told that he uploaded the offer into bank of americas equator system? now it supposed to be a waiting game. Anyone have any clue if the process starts all over and this will take months? or do you think that bc of what happened with the last offer - most of the work has been accomplished and this should only take a few weeks?? or is it anyones guess all together! lol
Generally speaking, a new offer with a new purchasers name starts the process all over. If the last BPO was done within 90 days, they may be able to re-use it, if it's older than 90 days they will almost always order a new one. After the BPO is received and if your offer is within BPO ranges then it will go to the investor for review unless the loan servicer is a delegated approver and can thus accept or deny your offer without working through the investor.
A lot of how quickly it goes depends on the sellers agent, how knowledgable they are, and how hard they are working. I've heard of good agents determining who the investor is (using a QWR - Qualified Written Request) and working through both the servicer and the investor directly. If the sellers agent sits around and waits for the servicer to get back to them, the deal will likely never get done.
A lot also depends on if it has a 1st + 2nd or just a 1st. We're in the middle of our 2nd short sale offer. The 1st one took 5 months before the 2nd refused to release the lien without a deficiency judgement so the seller backed out and the deal died. The most recent one that we're still in the middle of, the offer was accepted almost 3 months ago. Similar to you, the old buyer had walked and they had a written approval they were going to "slip is into", which didn't happen. They had to order a new BPO and it just came back 100k over our offer price (even though there was an old loan approval at our offer price and the BPO was good at that time). If we close, which is unlikely, it will be at least 3 more months.
Good luck! The listing agent is key.
Actually the Equator system generally uses appraisals rather than BPOs. They however seem able to get them done in less than a week. My comments deal with single loan situations. Second the problem is the second not Equator.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
