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.
I've understand the general consensus is that banks take up to 90 days to respond on a short sale offer.
Why? Do banks really think a buyer in this market is going to sit around and wait for them while they could be snapping up deals somewhere else?
In this market (Atlanta, GA) prices are only going down!
Does the bank wait 90 days to respond to a short sale because they are hoping that the owner/mortgage payer will magically get his/ her job back and be able to start paying their mortgage back?
Does the bank wait 90 days because they are hoping for a government bailout?
I've found a property that I want to put in an offer on, but I don't have 90 days to sit around and do nothing. There are soooo many properties on the market for sale, I can make offers on very similar properties. Ultimately, I am only buying one primary residence so I don't want to get locked into waiting on one property or conversely putting out multiple contracts and then being obligated to buy them all.
Banks are not used to dealing with this volume of short sales and foreclosures. They do not have the infrastructure to handle the volume. It's as simple as that.
Most real estate contracts have a short sale addendum attached to it that states that buyers can revoke the offer at any time prior to notice that the bank accepted the short. Typically what buyers do is put in the offer, and then keep looking. If something better comes along they revoke the short sale offer and offer on the new property. If nothing better comes along, then you've lost nothing.
It really depends on what your local contracts say. In Oregon, money IS NOT placed into escrow until the short is approved by the lender and buyers can revoke. For a buyer, there really is nothing to lose.
Banks are not used to dealing with this volume of short sales and foreclosures. They do not have the infrastructure to handle the volume. It's as simple as that.
Thank you for your response - Follow up question:
I found a foreclosure I was getting ready to put an offer in on. On the day I was going to put in the offer, another buyer put in an offer just hours before me, and since the offer was close to the asking price the bank accepted on the same day. The "bank" was Freddie Mac.
Is it the same department that handles short sales as foreclosures?
We put in an offer on a short sale on 2-11-09. Our offer is exclusively going to the banks with no other offers going with it. There is a backup offer waiting if something were to fall through with ours. I think every situation varies. Our sellers/listing agent have a short sale mitigator so I think that is helping ours move a bit faster. Fingers are crossed. It will sure be worth the wait.
We offered the asking price so we are giving them what they want. Hope the bank realizes that and just pushes it through.
We put in an offer on a short sale on 2-11-09. Our offer is exclusively going to the banks with no other offers going with it. There is a backup offer waiting if something were to fall through with ours. I think every situation varies. Our sellers/listing agent have a short sale mitigator so I think that is helping ours move a bit faster. Fingers are crossed. It will sure be worth the wait.
We offered the asking price so we are giving them what they want. Hope the bank realizes that and just pushes it through.
I found a foreclosure I was getting ready to put an offer in on. On the day I was going to put in the offer, another buyer put in an offer just hours before me, and since the offer was close to the asking price the bank accepted on the same day. The "bank" was Freddie Mac.
Is it the same department that handles short sales as foreclosures?
No. Short sales and foreclosures are different beasts.
Banks are not used to dealing with this volume of short sales and foreclosures. They do not have the infrastructure to handle the volume. It's as simple as that.
Most real estate contracts have a short sale addendum attached to it that states that buyers can revoke the offer at any time prior to notice that the bank accepted the short. Typically what buyers do is put in the offer, and then keep looking. If something better comes along they revoke the short sale offer and offer on the new property. If nothing better comes along, then you've lost nothing.
It really depends on what your local contracts say. In Oregon, money IS NOT placed into escrow until the short is approved by the lender and buyers can revoke. For a buyer, there really is nothing to lose.
Do you know how it works in Ca? How long does the bank take to accept the short sale? And when it does accept it, how long after that til you move in? My agent told me that she knows someone it took them 8 months. If you revoke your offer you lose your earnest money deposit though right? Thanx
Do you know how it works in Ca? How long does the bank take to accept the short sale? And when it does accept it, how long after that til you move in? My agent told me that she knows someone it took them 8 months. If you revoke your offer you lose your earnest money deposit though right? Thanx
You don't need to put down earnest $ until the bank accepts your offer. It depends on every sale on how long it can take. Our mitigator estimated 60 days, but it could be sooner, or you never know..
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.
