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Just found this very relevant thread in light of my situation, so I thought I'd post here. We've had an accepted (by the seller, not the lender) short sale offer now since July 20. We've heard that typically, short sales in the Sacramento area take 6-7 months...so we're still well within that timeframe. My question is, when the short sale bank finally comes around and responds back, what's been the customary type of response? Does the bank usually want to settle around the current appraised value, the value established by comparable properties, or are they still looking to recoup something closer to the loan amount owed?
In our case, there is only 1 mortgage on the home, and I believe it's about $150K over our offer amount accepted by the seller. However, the lender is WAMU/Chase, apparently notorious for inaction and unpleasant communication with short sales. It was late September that the negotiator ordered appraisals, but since then, all we've heard is "we're overwhelmed with paperwork". What the heck is happening?
Would love to hear your thoughts and more experience of some recent Short Sale buyers (preferably successful!).
...My question is, when the short sale bank finally comes around and responds back, what's been the customary type of response? Does the bank usually want to settle around the current appraised value, the value established by comparable properties, or are they still looking to recoup something closer to the loan amount owed?...
The bank will have a market analysis done to establish value. This is typically done by a local agent doing a form of CMA called Broker Price Opinion (BPO). If they agree to do a short sale based on seller hardship and financial situation, and if the BPO value is in reasonable range of your offer, then they might agree to the sale, or counter. Has your agent checked comps to see if your offer is fair for your market and this house?
The bank will have a market analysis done to establish value. This is typically done by a local agent doing a form of CMA called Broker Price Opinion (BPO). If they agree to do a short sale based on seller hardship and financial situation, and if the BPO value is in reasonable range of your offer, then they might agree to the sale, or counter. Has your agent checked comps to see if your offer is fair for your market and this house?
Yes, our realtor is regularly sending me updated sale prices for comps in the area, both for sales and whatever is on the market. Our seller-accepted price is definitely right in line with these comps. I just smell a rat because by now, it seems like WAMU/Chase should have been able to work through their "mountains" of short-sale related backlog...since it's been 5 months since the seller accepted our offer. And, there is no other lender, just WAMU/Chase. Now, we can already hear the excuses like "it's the Holidays - the committees don't meet until late January"..or something lame like that. With our luck, they will send us a response right when interest rates spike up again
How does a buyer of a short sell find out how much is owed on the loan by the seller and which bank it is held with?
Your agent should be able to dig and get that type of information for you fairly easily. Remember, with real estate (like most everything else in life), just ASK questions. Never a crime to ask questions, right?
A short sale listed as BANK APPROVED CASH SALE, CAN CLOSE IN 30 DAYS.
I have offered the cash price, my real estate agent has submitted signed offer from Sellers to the lender ( bank of america)
why is it taking soo long to hear from bank (lender) to accept my offer?
I am the only one applying for this house
House has been on market for over a year
I assume this statement was in the listing remarks? At the time that statement was made, the listing agent probably had bank approval for a previous buyer that fell through. You should check with the listing agent to see if the bank will still give that approval to a new buyer. You may have to start the approval process all over again, especially if it's been a long time since that statement was made.
You mentioned that "my" agent submitted the offer to the lender. This is usually done by the listing agent. Do you have your own buyer agent, or are you working through the listing agent?
Nothing is guaranteed in short sales. Take all statements with a grain of salt.
Our lender doesnt let us start the loan process until we get the short sale written approval from seller's bank. Dont know if its the case for you as well.And if they do, are you willing to spend so upfront money with a risk that the short sale is denied or takes forever to get approved like the one we are trying to purchase.
I have everything ready though (pre-approved, all docs sent to lender) so as soon as the written approval comes in, they will order appraisal and send to underwriting.
So far we are at 8+ months waiting. BPO was ordered in August to give you an idea of what to expect
Quote:
Originally Posted by S Stroll
We are under contract on a short sale. BPO has been done. Should we obtain our financing?
The listing agent is working for the seller and the lender. It sounds like you may have put in your offer through the listing agent, otherwise you would only be talking to your buyers agent, who would be looking out for your best interest.
No matter what your offer is, the listing agent cannot place the house as Under Contract on the mls until both the seller and the lender sign an acceptance.
Until the lender accepts the offer, they can consider all offers, and any offer may trump yours.
Something doesn't sound right in this case.
Not correct.
Using a buyer agent in a short sale is practically worthless. The buyer agent has no access to the bank or any outsourced processor used by the bank.
In a short sale, the buyer agent talks to the listing agent so all you've done is introduced a layer of unnecessary communication and yet another opportunity for a communications screw up.
Also, the statement that the listing agent can't place the house under contract is incorrect. It depends on how the short sale is structured. In some cases a seller wants to short sell and they list their house for sale. They can even list it in the MLS that way. When the buyer makes an offer and the seller accepts, the listing agent and if they are smart, in concert with the seller's attorney, proceed with getting the short sale approved.
Yes, it happens like this all the time.
Oh, and in a regular sale, the buyer can cancel during the contingency period. Not ever state operates like Arizona. Each state has it's own regulations regarding this issue.
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