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How is everyone able to find out the amount owed on the property? I have recently made an offer on a short sale property with BofA and offered $20k below list. As far as I know, the property wasn't approved for short sale when I made the offer.
Stumbled upon this website out of frustration with my own Short Sale process. Below is my timeline.
BOA SS 1 Lien. Short sale has been pre-approved. House was off the market three times prior to our offer. Last offer was completely through the SS process but the buyers finances fell through once it came to closing. We offered on it 1 day after it came back on the market. We offered list price plus 2k to go towards closing.
9/28- Offer sent
10/1- Seller accepts offer
10/10- Our inspection was processed
10/16- Found out BOA pushed this to the foreclosure dept.
10/25- Finally got the house back into short sale status
10/30- Everything re-uploaded into the negotiator tool. New negotiator assigned.
11/2- Our appraisal done
Week of the 11/12- BOA appraisal processed.
Now we wait more. Hoping to be in our house by mid Jan 2013 at the latest. The earlier the better. Getting very frustrated that it seems to take a week to a week and a half to get any news. Holidays are sure to slow everything down again...
Oct 19 - Seller's agent receives written approval and withholds it from us for 5 days!!
Oct 24 - Inspection
Oct 25 - Contacted the title company and real estate lawyer. Seller is attempting to stay in the home and delay closing even though the bank has given them a settlement expiration date of Nov 17. Seller's agent is trying to ignore the date imposed by the bank for settlement.
Now we are very upset. These people are being extremely unprofessional about this transaction.
Nov 16 - Closed on the house. It took 6 hours!!!!!!!! If you are dealing with a short sale, please stay on the title company and make sure they get all of the documents to the appropriate bank according the bank's specifications. The title company was at fault for not sending the documents 48 hours ahead of time and we had to jump through hoops to get the seller's first lender to even look at the paperwork right before closing. What a nightmare!!!
However, it's all over. We have our amazing house and I couldn't be more happier.
How are you guys able to close within 1-2 weeks after short sale approval?
Are you paying cash?
We are getting very close to get the approval on ours but need at least 30-45days to close since we are getting a loan.
(our loan officer is waiting for the short sale approval before starting the loan process).
Here is the timeline so far on the short sale we are purchasing:
1st $235k and 2nd $40k with Chase.
Offered $180k
BPO $198K
2nd BPO (read below why)$219k
04/28/12 submitted offer to seller
05/08/12 seller sign offer
end of July: we are informed that they lost negotiator and need to start all over again
August: new BPO comes $20k higher than previous one and seller's agent (dealing directly with her) submit comps and appraisal to counter.Chase seems to listen.
End of October:Agent tells me 1st and 2nd lien holder have trouble getting to agree on how much 2nd is getting.
Early November: 1st and 2nd come to agreement.
Since 11/19 : waiting on written approval
Quote:
Originally Posted by Mykal_P
11/15: Received verbal approval today with the approval letter being sent tomorrow. We are set to close by December 7th at the very latest. This process has been pretty painless. I was very fortunate to have exceptional individuals involved. All were motivated, flexible, and extremely educated in the whole short sale process from the seller, sellers agent, sellers negotiator, my agent, and my attorney. Barring any last minute hiccups, this short sale process from submitting our offer to close will be about 3 months. Count my lucky stars for this excellent deal.
How are you guys able to close within 1-2 weeks after short sale approval?
Are you paying cash?
We are getting very close to get the approval on ours but need at least 30-45days to close since we are getting a loan.
(our loan officer is waiting for the short sale approval before starting the loan process).
Here is the timeline so far on the short sale we are purchasing:
1st $235k and 2nd $40k with Chase.
Offered $180k
BPO $198K
2nd BPO (read below why)$219k
04/28/12 submitted offer to seller
05/08/12 seller sign offer
end of July: we are informed that they lost negotiator and need to start all over again
August: new BPO comes $20k higher than previous one and seller's agent (dealing directly with her) submit comps and appraisal to counter.Chase seems to listen.
End of October:Agent tells me 1st and 2nd lien holder have trouble getting to agree on how much 2nd is getting.
Early November: 1st and 2nd come to agreement.
Since 11/19 : waiting on written approval
Hello Gabriel - I'm not paying cash either. I am going through a mortgage broker which I had submit my loan application to underwriting at the end of the 2nd month of the short sale process which is key, but also a risk since theres a $125 application fee that is non-refundable if the loan didn't close. My logic was to do as much pre-work as possible that was within financial reason (what was I willing to risk dollar wise) to ensure that I can close as soon as possible after receiving written approval from the Lien Holder.
My lender provided a formal approval with contingencies about a week or so after it was submitted. They were the normal conditons such as appraisal (Returning min. value of the purchase price), formal written bank approval for the short sale, proof of homeowners insurance, etc. I cleared all of my contingencies for the approval immediately except for the homeowners insurance since I was going to wait until the verbal approval first.
The appraisal takes the longest, so after receiving the verbal approval on 11/15, I had the appraisal ordered then I took care of the homeowners insurance on the property. The official formal written approval for the short sale wasn't received until 11/19. The only outstanding contingency left for loan approval was the appraisal which was completed several days ago (delayed due to the Thanksgiving holidays).
The file is in underwriting as we speak with the expectation that we receive the clear to close this Friday or Monday. This will then give us the final buyer fees either Tuesday (11/04) or Wednesday (11/05) that needs to be submitted by the sellers title company in the Final HUD 48 hours prior to closing which sets us up to close on Friday, December 7th. This would put the length of time from receiving the written approval to close at a little over 2 and a half weeks.
The key is doing as much pre-work as possible and within your own financial reason: What are you willing to risk in terms of dollars to set you up for a faster close such as risking the application fee, home inspection, appraisal fees, etc. That's what it really comes down to in addition to of course willing parties such as sellers agent, negotiator, attorney, etc.
I hope that helps. Feel free to post any additional questions you may have about my short sale experience.
Hi, thanks for your detailed explanation!
So you are the one who wanted to close within 1-2weeks..not the seller's bank who approved the short sale, correct?
I already submitted all our financial info to our mortgage officer but I don't really want to spend any money (home inspection, upfront appraisal cost mortgage broker is asking..) etc... until we get the written approval. (especially since there were 2liens on the house and offer was pretty low).
Good news is that yesterday our agent told us that all parties have given her a verbal approval. We are not in a rush to close, I just hope seller's bank give us enough time (at least 30days.45days will be great).
Did your lender gave you a formal approval or pre-approval? How can they give you a formal approval without going to underwriting?
Thanks!
Quote:
Originally Posted by Mykal_P
Hello Gabriel - I'm not paying cash either. I am going through a mortgage broker which I had submit my loan application to underwriting at the end of the 2nd month of the short sale process which is key, but also a risk since theres a $125 application fee that is non-refundable if the loan didn't close. My logic was to do as much pre-work as possible that was within financial reason (what was I willing to risk dollar wise) to ensure that I can close as soon as possible after receiving written approval from the Lien Holder.
My lender provided a formal approval with contingencies about a week or so after it was submitted. They were the normal conditons such as appraisal (Returning min. value of the purchase price), formal written bank approval for the short sale, proof of homeowners insurance, etc. I cleared all of my contingencies for the approval immediately except for the homeowners insurance since I was going to wait until the verbal approval first.
The appraisal takes the longest, so after receiving the verbal approval on 11/15, I had the appraisal ordered then I took care of the homeowners insurance on the property. The official formal written approval for the short sale wasn't received until 11/19. The only outstanding contingency left for loan approval was the appraisal which was completed several days ago (delayed due to the Thanksgiving holidays).
The file is in underwriting as we speak with the expectation that we receive the clear to close this Friday or Monday. This will then give us the final buyer fees either Tuesday (11/04) or Wednesday (11/05) that needs to be submitted by the sellers title company in the Final HUD 48 hours prior to closing which sets us up to close on Friday, December 7th. This would put the length of time from receiving the written approval to close at a little over 2 and a half weeks.
The key is doing as much pre-work as possible and within your own financial reason: What are you willing to risk in terms of dollars to set you up for a faster close such as risking the application fee, home inspection, appraisal fees, etc. That's what it really comes down to in addition to of course willing parties such as sellers agent, negotiator, attorney, etc.
I hope that helps. Feel free to post any additional questions you may have about my short sale experience.
Hi, thanks for your detailed explanation!
So you are the one who wanted to close within 1-2weeks..not the seller's bank who approved the short sale, correct?
I already submitted all our financial info to our mortgage officer but I don't really want to spend any money (home inspection, upfront appraisal cost mortgage broker is asking..) etc... until we get the written approval. (especially since there were 2liens on the house and offer was pretty low).
Good news is that yesterday our agent told us that all parties have given her a verbal approval. We are not in a rush to close, I just hope seller's bank give us enough time (at least 30days.45days will be great).
Did your lender gave you a formal approval or pre-approval? How can they give you a formal approval without going to underwriting?
Thanks!
Actually, the lender requires us to close before December 8th or the approval will be rejected, so my pre-work paid off.
As far as the loan approval, I received a pre-approval first which was submitted with my offer at the very early stages. That comprises of a credit check and a quick evaluation of my debt to income ratios which were below the 45% threshold which includes the estimated Principle, Interest, Taxes, and Insurance (PITI) payment. I received a formal approval after I submitted the loan to undewriting which came back with the normal conditions as stated. I just received word today that I will receive my clear to close Monday, which may put us to close possibly a bit earlier. We will see.
Actually, the lender requires us to close before December 8th or the approval will be rejected, so my pre-work paid off.
As far as the loan approval, I received a pre-approval first which was submitted with my offer at the very early stages. That comprises of a credit check and a quick evaluation of my debt to income ratios which were below the 45% threshold which includes the estimated Principle, Interest, Taxes, and Insurance (PITI) payment. I received a formal approval after I submitted the loan to undewriting which came back with the normal conditions as stated. I just received word today that I will receive my clear to close Monday, which may put us to close possibly a bit earlier. We will see.
Still waiting for a written approval on our short sale even though our agent got the verbal approval from all the parties involved at the bank more than two weeks ago. Don't know if I should be worried
Quote:
Originally Posted by Mykal_P
Actually, the lender requires us to close before December 8th or the approval will be rejected, so my pre-work paid off.
As far as the loan approval, I received a pre-approval first which was submitted with my offer at the very early stages. That comprises of a credit check and a quick evaluation of my debt to income ratios which were below the 45% threshold which includes the estimated Principle, Interest, Taxes, and Insurance (PITI) payment. I received a formal approval after I submitted the loan to undewriting which came back with the normal conditions as stated. I just received word today that I will receive my clear to close Monday, which may put us to close possibly a bit earlier. We will see.
Still waiting for a written approval on our short sale even though our agent got the verbal approval from all the parties involved at the bank more than two weeks ago. Don't know if I should be worried
Closed this morning at 10 AM. Took about an hour and a half total. Keys in hand and extremely happy!!!! Short Sale time frame from beginning to end was 3 months 7 days.
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