Short Sale with 2 lenders (August: short sales, real estate, mortgage) - San Bernardino and Riverside Counties - California (CA) -The Inland Empire - City-Data Forum

ARICKARG · 01-30-2010, 02:08 PM

Hi!

So my husband and i offered on a short sell in Oct. 2009 the sellers accepted our offer and submitted it to the bank for approval on Nov 09, 2009. On Dec. 18, 2009 our agent called and said that the short sale has been approved and that the first lender has accepted our offer. We are now waiting for approval from the second lender. Anyone know how long it takes or if will ever even get approved?

bhcompy · 01-30-2010, 04:34 PM

When I was house hunting my realtor informed me that unapproved shortsales can take 3-6months for bank approval. This was last summer. I don't know if that's actually true, but I don't think the realtor had any reason to lie to me considering we were looking at shortsales and such already.

NattyMojo · 01-30-2010, 05:22 PM

Although the first lender approved the deal in Dec., getting the second lender's approval can be very challenging and may require money from the seller (or you) to have them approve it. A second lender will typically want a 5-10% buyout for them to agree to the sale. The first lender usually is willing to contribute 3-5k toward the buyout amount. If your seller can't cover the difference they may ask you to cover it. Short sales are taking anywhere from 3-8 months based on the lender(s) and circumstances involved. Hope this helps.

BlueyedCat · 01-30-2010, 08:44 PM

Quote:

Originally Posted by NattyMojo

Although the first lender approved the deal in Dec., getting the second lender's approval can be very challenging and may require money from the seller (or you) to have them approve it. A second lender will typically want a 5-10% buyout for them to agree to the sale. The first lender usually is willing to contribute 3-5k toward the buyout amount. If your seller can't cover the difference they may ask you to cover it. Short sales are taking anywhere from 3-8 months based on the lender(s) and circumstances involved. Hope this helps.

This was very helpful. As we have been looking at homes. I now know that I will not even try for a home that is a short sale. Thank you.

tilegirl · 01-31-2010, 03:24 PM

It is worth $250 to talk to a lawyer about this. You need to make sure the wording is correct if the other lender plays along. If not, they may be able to come after you for the differencne. Very much worth the money to talk to a RE lawyer who is current on the no recourse laws.

richardlo · 02-04-2010, 05:04 PM

I went through a short sale last year and it took about 7.5 months to complete. Banks usually move very slow, they are not in the business of real estate and dont realize, or maybe care, that things should be done in a certain amount of time. So when asked for something that typically takes a day they take 2 weeks thats if they provide the information requested sometimes they get it wrong or people leave and a new person takes over and needs to figure out whats going on. All said and done you need to be patient and persistent and forget about 30-60 day escrow it will drag on longer than you can imagine, but the end result is you hopefully get a bargain.

fgv1it · 02-04-2010, 08:03 PM

We just moved into a house in SoCal that we bought in a short sale with two mortgages. We put in the offer in early April of last year, and we closed in the middle of August. One factor that helped us was that the two mortgages were with the same bank, although they were processed in two different offices (one of them in North Carolina!) and were treated as two different entities. The two mortgages did negotiate between themselves on the settlement amounts, and the first mortgage did have to put in extra money to satisfy the second. All in all, however, it appears that our transaction, at about four months, was quicker than the norm for short sales. Good luck with yours.

House4kids · 04-29-2011, 09:31 AM

Does anyone have any more current information on Short Sales in the High Desert? We just made an offer on a short sale, and seller accepted - still need bank approval - there is only one mortgage lender and we are putting down almost 40% in cash - any idea if this would help it move along faster? We have guarnteed lender approval already.

bhcompy · 04-29-2011, 07:56 PM

Quote:

Originally Posted by House4kids

Does anyone have any more current information on Short Sales in the High Desert? We just made an offer on a short sale, and seller accepted - still need bank approval - there is only one mortgage lender and we are putting down almost 40% in cash - any idea if this would help it move along faster? We have guarnteed lender approval already.

If there is a way to speed it up I haven't found it. Assuming the loan is owned by a big bank, you'll have a real hard time finding out who to call at the bank to get any information at all. The other realtor probably won't be any help either.

House4kids · 05-05-2011, 10:48 AM

Quote:

Originally Posted by bhcompy

If there is a way to speed it up I haven't found it. Assuming the loan is owned by a big bank, you'll have a real hard time finding out who to call at the bank to get any information at all. The other realtor probably won't be any help either.

yeah - i figured that -

and yes - it is Bank of America. so shoot me now. But Thank you anyway.