Short-Sale Advice. (Annandale, Fairfax: short sale, foreclosures, rental) - Northern Virginia - Virginia (VA) - City-Data Forum

mediapirate · 03-28-2009, 12:46 PM

I've submitted an offer to purchase a short-sale property in the Fairfax area. I received my approval letter and my agent received the sellers ratified contract back. We submitted our offer on Monday, 3/23 the sellers agent believes we'll receive the banks approval in 4 weeks. I listed the closing date of May 22 2009 on my offer letter but I would like to extend the closing till the 2nd week of June. Is it possible to extend the closing date till June 14th now that the agent has ratified the contract? I'm concerned about the cushion around my down-payment, we've asked the seller to cover the closing costs. I would feel more comfortable receiving the deductible back from my current rental and an extra $4000 in the bank from the first paycheck in June.

So, in short can I request the closing date to be extended into June even if the sellers agent has ratified the contract? We're still waiting for the bank to approve, but if it takes them till the 2nd week of May then I'm not worried as I believe we have 30 days after the bank approves to close?

Bob Mercurio · 03-28-2009, 12:59 PM

Most likely it will not close any sooner that June given the bank approval process. But yes, you can write an amendment to the contract to change the closing date. It will have to be approved by the seller and the bank also.

Skatergirl · 03-28-2009, 03:09 PM

In my personal experience the bank will tell you what their timeline is! I can't imagine the seller paying closing costs in a ss either. You may not hear anything back from the bank for a couple of months. A closing date from you should be considered a wish list. The bank is running the show. I think my short sale had a closing date change at least 4 or 5 times. I honestly forget how many times due to all the back and forth and then nothing and then more back and forth with a rushed closing date that we had to jump through hoops to make happen.

typical guy · 03-29-2009, 05:36 AM

I agree with skatergirl. Don't count on getting your closing costs paid. The bank won't pay anything in a short sale. Think of it as a foreclosure that someone is living in.

capital capital · 10-29-2009, 10:03 AM

banks will pay closing costs - dont believe the nay sayers. Just be persistent! I just got an approved contract from the bank on a house in Southern Maryland, and they agreed to pay 5% for closing costs on a property selling for 385,000.

Rick Lee · 11-01-2009, 01:04 AM

I have a pending bank approval to pay 3% on a short sale. The bank doesn't actually pay for anything. They just net that much less from the buyer's funds. It's not a done deal yet, but the 3% was never an issue.

Margery · 11-01-2009, 06:34 AM

Freddie Mac (FHLMC) has a program called "Home Steps". The seller (if it is a foreclosure Freddie Mac is the seller) will pay up to 3.5% toward closing costs. Ask your Realtor to look for Home Steps foreclosures, there is a bonus for the selling agent also. Your Realtor can sign up for the Home Steps program and get advance notice of foreclosures that are not yet in the MLS.

alwaysme1 · 03-20-2010, 08:53 PM

I just sold my home in a short sale, and the person that bought the ss waited just as long as we did. In the end when everything was approved the bank decided when the closing would happen and when they wanted to receive their money. You can request an extension to the bank but you have to have a failed reason for requesting the extension. i used this amazing law firm that helped everyone (seller,buyer,agents) with the process. I think that my experience as a seller was made as easy as possible thanks to this law firm it's in Annandale VA and the person that handled the short sale progress nows almost everything about ss and you might want to call them just to see if you can get your questions answered. Mason Law Firm in Annandale and ask to speak to Cintia Sosa she can help you.

Tish Thompson · 03-23-2010, 10:32 AM

Your best bet is to have your agent write up an addendum asking to push the closing date out...but do it NOW. It is totally possible to get approval much quicker than what I've seen on this board, I've gotten approvals in as little as 8 days.

The earlier you get the addendum to change the settlement date in to the seller and bank, the better. After the bank sets the closing date, their level of flexibility becomes almost non-existent.

Quote:

Originally Posted by mediapirate

I've submitted an offer to purchase a short-sale property in the Fairfax area. I received my approval letter and my agent received the sellers ratified contract back. We submitted our offer on Monday, 3/23 the sellers agent believes we'll receive the banks approval in 4 weeks. I listed the closing date of May 22 2009 on my offer letter but I would like to extend the closing till the 2nd week of June. Is it possible to extend the closing date till June 14th now that the agent has ratified the contract? I'm concerned about the cushion around my down-payment, we've asked the seller to cover the closing costs. I would feel more comfortable receiving the deductible back from my current rental and an extra $4000 in the bank from the first paycheck in June.

So, in short can I request the closing date to be extended into June even if the sellers agent has ratified the contract? We're still waiting for the bank to approve, but if it takes them till the 2nd week of May then I'm not worried as I believe we have 30 days after the bank approves to close?

GoHokiesGo · 03-23-2010, 12:06 PM

My roommate has been waiting on a short sale property for close a year now. The seller's accepted her offer back in July, the bank "acknowledged" the offer in late August, she was given a verbal approval and told she would be able to close at the end of November. That date passed, the bank approver changed, she had little communication and was just now told they'd be closing on April 30th. I honestly would not be surprised to see that date change as well.

So be wary of someone telling you only 4 weeks to get a short sale approved. I've had several friends attempt to buy a short sale and wait several months, have them fall through after several months, or are still waiting indefinitely. It's a rough process. I'm sure it's possible to have them approved in 8 days if the bank is motivated somehow or you get lucky, but no one I've heard of has been that lucky.