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My hubby and I have a bid in on a short sale in Ohio. I was, at first, not comfortable with bidding on it because my research showed that short sale horror stories can extend six months or more. We don't have that kind of time. But our realtor assured us that 30 days is the norm and we should not worry. So we offered. The sellers were obliging and came through quickly. The offer has now been sent to the bank. It has been 27 days and still no word from the bank. I call my realtor weekly and keep getting put off when I can get ahold of her. I know the sellers are frustrated and so are we. We are seriously thinking about withdrawing our offer, against the wishes of our realtor. Are we able to do this? If we do, what repurcussions could there be? We put down earnest money, but our realtor is holding it, so it has yet to be taken out of our account. I would ask my realtor all this, but I am starting to think she either doesn't know what she is talking about or is not taking our best interests into consideration. Thanks!
If you NEED a place to live and cannot wait you should have gotten the stats on how long the lender is generally taking to get everything approved.
Unclear if your CONTRACT HAS A SPECIFIED CLOSING, but if that date is NOT GOING TO BE MET by the seller than no need for your to rescind your offer, just communicate your intention to NOT EXTEND CLOSING UNDER ANY CIRCUMSTANCE and you should get your earnest money back.
In olden times 60 day closings were standard. Once everything got all computerized things got cut so that 30 days or less was pretty routine. Not sure if you are sweating a 60 day total wait or longer...
We did ask about the particular bank's stats on short sales - we were told thirty days. We don't have to have a place to live yet, but the house we are renting is on the market and the price has just been reduced. So we could be on borrowed time - we just don't know. We have a specified closing date that is two weeks away. We are willing to wait until that date before we walk. I just was not sure if we would lose our earnest money (a big hit to us right now). I was starting to feel dupped and trapped in a deal that has gone nowhere so far. Thank you chet, for letting me know that we still have a way out if we need it!
We did ask about the particular bank's stats on short sales - we were told thirty days. We don't have to have a place to live yet, but the house we are renting is on the market and the price has just been reduced. So we could be on borrowed time - we just don't know. We have a specified closing date that is two weeks away. We are willing to wait until that date before we walk. I just was not sure if we would lose our earnest money (a big hit to us right now). I was starting to feel dupped and trapped in a deal that has gone nowhere so far. Thank you chet, for letting me know that we still have a way out if we need it!
Get your agent out and find another. Don't kill it until you have something better in place. Then shoot it right between the eyes.
If your agent does not want to play get another. They are cheap.
My hubby and I have a bid in on a short sale in Ohio. I was, at first, not comfortable with bidding on it because my research showed that short sale horror stories can extend six months or more. We don't have that kind of time. But our realtor assured us that 30 days is the norm and we should not worry. So we offered. The sellers were obliging and came through quickly. The offer has now been sent to the bank. It has been 27 days and still no word from the bank. I call my realtor weekly and keep getting put off when I can get ahold of her. I know the sellers are frustrated and so are we. We are seriously thinking about withdrawing our offer, against the wishes of our realtor. Are we able to do this? If we do, what repurcussions could there be? We put down earnest money, but our realtor is holding it, so it has yet to be taken out of our account. I would ask my realtor all this, but I am starting to think she either doesn't know what she is talking about or is not taking our best interests into consideration. Thanks!
Your Realtor should have had a short sale addendum that went along with the contract. That addendum would have had a date in it as to when the bank had to respond to you by. As far as the Re agent holding earnest $; that's a big fat no here. If the agent is holding your EM and did not properly fill out a short sale addendum for you... Well lets just say the agent and their broker are derelicts and are probably going to get sued someday soon. As far as getting a short done in 30 days, that was also wishful thinking as some banks will take up to two or three months; if there's a second lien holder forget it.
We routinely hold earnest money checks. They are not cashed and made out to the Title Company. The check is turned over when the escrow is opened upon bank approval of the short sale.
I would wait it out.. I understand that you're getting antsy.. but unfortunately short sales are a waiting game and if you're not willing to play the game, then you shouldn't play. It would be nice to get the cake (great deal) and eat it too (close in 30 days) but that's just not realistic (at least in our market). You may be better off going and finding a regular sale to buy. If there was no clause in your addendum about the earnest money being "hard" (non refundable) then you are able to pull your offer at any time with no penalty. Even if the house you're renting gets an offer, then you'll still have at least 30 days before it closes, right? Did your agent tell you that most likely it takes 30 days just to get the approval (many times longer) and then you still won't close for approx 30 days after that?
Our short sale offers have a closing date no earlier than 2 months out... You never know you may get the approval from the bank any day now. It can literally be no communication and then bam you get an approval letter, so I would wait it out.
I have no idea what your contract says - but your contract rules. SS Addendum?
The fact that your place is for sale is a non issue. Do you have a lease? What does it say about the sale? Will you be given 30 days? Does your lease stay with the property?
Do you want this place for the price you've offered?
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