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Ok, my wife and I have been looking for houses since May. We saw this one back in June but we thought it was overpriced so we decided to wait it out. About 3 1/2 weeks ago we put in an offer and asked the seller to approach the bank about a short sale. We were told that happened and that a negotiator had been assigned. Then they went silent for 2 weeks and we heard that they were supposed to be foreclosed on 8/12/10. So I checked with the trustee and our offer was above the opening bid for the courthouse foreclosure auction. Then I get a call the morning of the 8/12 that the lender has filed paperwork to delay the foreclosure 60 days because they have an offer they are evaluating. The listing agent says that is our offer, who knows. We were told last week it has been placed on the priority list with Wells and we should hear "sooner than later" if our offer was accepted and get a date for closing. So of course I haven't heard anything this week. What do you folks think? 2 weeks? I figured if they delayed the foreclosure 60 days they have to be thinking they can get it under contract and sold prior to then. Maybe I'm being too optomistic.
I'm kind of jaded when it comes to short sales but honestly less than half of them ever go through, there are almost always problems and delays along the way.
I had offers on 6 short sales, never heard back on any of them but one which fell through. One I offered asking price they never got back to me, house sat for a year and then sold at auction for 25k less than I had offered a year earlier.
I finally gave up and put an offer on a foreclosure heard back in less than 24 hours and was under contract.
There's another thread in this section and here's what the poster had to say...
My current house was a short sale, it was my first RE purchase. My agent had never done a SS before, and we were not even aware that it was a SS until after we put the offer in and paid our Earnest Money.
It took 7 months to close and we were never sure that the deal would close until we were signing the papers. In the meantime, the house sat neglected and we had to do a little browbeating to get even minimal cooperation in attempting to preserve the condition of the property. Even so, there was some damage (winter temps can hit -25 here and things break if not properly winterized and there is no heat).
Be prepared for a possible long term (6+ months) hassle with no guarantee of it working out.
I have a family member who just sold her house as a short sale with Wells Fargo. From the date she got the offer until the date of closing was about 60 days. That's the fastest I've seen. I've also seen them take a full year. You could be anywhere in between.
However, from what I have seen, getting to the point that a negotiator is assigned is often the longest step in the process, so the fact that you've reached that is a good step forward.
Do you know if there is just a 1st on the house, or if there is a 2nd also? Are there HOA liens, or tax liens? Do you know how much short they are? All of those factors can contribute to the length of the process.
All told though, it does sound like you are getting close. Make sure you have your financing in order. We had one short sale that after the bank approved it, the buyer (we were working with the seller) took 90 days to fix some major financing problems and we had to ask for 2 extensions on the closing. The bank has to refigure the bottom line to decide whether to extend at that point, and the whole deal could fall apart.
I closed a WF short sale in about 60 days, but I have one now that's dragging on about 4 months. Really depends on getting lucky with a good negotiator being assigned as opposed to a bad draw/crappy negotiator. Unfortunately, most are bad.
Well I have had a offer on a Short Sale house for over 2 months the listing agent changed the status to Contingent continue to show.
My agent and the listing agents said that the appraiser was sent out and that the offer I made was in the approval stage. My agent told me if I wanted to I could go over mow the lawn, pull weeds, trim the hedges and water the flowers. To me that seemed like the process was going great and that I would be closing soon... Well to my surprise I went over on to look and see what I could do and noticed a foreclosure notice on the door. What will happen to my offer now? and will it go much faster then the short sale? Since the house was abandoned the length of the redemption period is reduced to 30 days, Is this correct. I need some clamming down someone please let me know what to expect now.
Also if I wait for the house to sell at auction can I pick it up and finance it or do I have to have cash only?
You need local advice. We have no idea what your local foreclosure process is.
Just because a lender posts a foreclosure notice does not mean your offer will not be approved, the foreclosure postponed and close.
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