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We are suppose to close in 2 weeks, but now a title search just brought up a judgment on the sellers side against the house. Should we be concerned? The sellers attorney is working out a deal. This whole process is stressful!
If they don't have the money to take care of it, I would think it potentially could cause a problem. Hopefully the attorney can work something out quickly. I hope the closing stays on track
How is everything going with you luvmy3dogs. I haven't been on the message board for a while, I didn't get a chance to catch up on all the updates yet. I hope everything is going good for you.
Quote:
Originally Posted by Luvmy3dogs
If they don't have the money to take care of it, I would think it potentially could cause a problem. Hopefully the attorney can work something out quickly. I hope the closing stays on track
How is everything going with you luvmy3dogs. I haven't been on the message board for a while, I didn't get a chance to catch up on all the updates yet. I hope everything is going good for you.
Still clueless here, haven't had an update in a month but we are supposed to get news on Monday or Tuesday. I'm hoping it is good news, but at this rate any news is appreciated.
I'll keep my fingers crossed that your closing isn't delayed.
I got some interesting news last night. Exciting but I'm proceeding with caution. So the home we are buying, we did things a little backwards than most short sales. We did the home inspection and then the appraisal before bank approval because we didn't want to wait and then find out the house wouldn't pass a FHA appraisal. All that came back clean so it was a waiting game. First bank approved a little over a month ago. 2nd bank hasn't officially approved but has been talking with the first bank and negotiating which led them to ask me to show proof of funds. The listing agent said this is a really good thing that they have moved on to me (the buyer). I showed them proof of funds and then a few days later I was told I could have early occupancy. I was advised strongly against making any changes bc heaven for bid something did fall through, I'm out that money. Both my agent and the listing agent seem very optimistic. It works out because I had to be out my rental by the 1st of June.
My loans underwriting is 100% complete and my loan officer said we can close immediately once we get that official 2nd banks approval. The sellers have done a soft close, as they are moving this week out of state.
What risk am I taking by moving in early? My original plan was to move into an extended stay type place til we close but it would stink having to move twice. I guess in this case if the deal falls through we still have to move twice. But it will be nice to save a few extra bucks being they said I wouldn't be charged anything when I move in before closing.
Anybody have experience with a similar situation? Is there a hidden risk of doing this that I haven't heard of? Does the bank know they have me trapped or think they have me trapped and can throw a counter offer at me or something thinking I'm already vested in the money to move?
March 16 - Saw house and put in full offer of $220 plus closing costs.
March 25 - Paperwork sent in to bank
March 26+ - Waiting to hear something! Anything!
I see that most people here have experience with appraisals and BPOs issued within a couple of months. Everytime we call the listing agent, we're told, "The bank is working on it." For all we know, he could just be saying that. I hate all the waiting with no information!
We have to move out of our current house Aug. 1...but the good news is we're renting from my parents until. Therefore, no pressure on time and no contracts.
I really love this house, which is so against "the rules" or buying a short sale. It's listed at $220 which I believe is under value, but it does need a good bit of work. Probably 40K. The house was listed for a year at 315K with no bids. My biggest fear is the bank countering at too much. The highest we can go is $250.
KB - I feel like I'm heading in the same direction as your situation.
March 16 - Saw house and put in full offer of $220 plus closing costs.
March 25 - Paperwork sent in to bank
March 26+ - Waiting to hear something! Anything!
Update!
May 22 - Just heard that our case has been assigned to a bank agent. Moving along. (It's better than hearing nothing!!)
Offered on SS November 27th
1st mortgage citibank
2nd and 3rd Bremer
Seller agreed and signed mid December
Jan 3rd SS package sent to lender
Jan 10th BPO ordered
Jan 28th the earnest check was cashed and escrow opened
Jan 31st found out BPO was never carried out and now has been escalated to have it done
Feb 3 Interior BPO/appraisal performed. Waiting to be assigned negotiator once the numbers come in. Hoping it is close to offer.
Feb 10 Contacted agent to amend our purchase agreement adding 2 additional months for bank approval since our 3 months is nearly up.
Feb 21 Received confirmation today that amended contract has been signed and we finally have a negotiator. The Negotiator needs updated paperwork from sellers since it is past 60 days.
Mar 11 Assigned a new negotiator
Mar 25 Requested an escalation of file
Mar 27 Citibank has verbally accepted our offer and want the file closed by April 21st. They are now negotiating with Bremer bank
Last month and a half there was back and forth with the second lien holder.
May 22 Sellers agent received notice from Citibank to tweak the final HUD and resubmit it. That was done today and it will go to the underwriters on Tuesday.
They are hoping the written acceptance will follow immediately after so we can finally start the loan and inspection part on our end. I guess we'll see soon enough.
Last month and a half there was back and forth with the second lien holder.
May 22 Sellers agent received notice from Citibank to tweak the final HUD and resubmit it. That was done today and it will go to the underwriters on Tuesday.
They are hoping the written acceptance will follow immediately after so we can finally start the loan and inspection part on our end. I guess we'll see soon enough.
Well here is my final report on my new short sale, closing tomorrrow.
made offer: Feb. 11, 2014
offer accepted: Feb. 12, 2014
approval from 1st lien holder: Mar. 25, 2014
final approval from 2nd lien holder: April 18, 2014
They started the escrow clock without a solid agreement with 2nd lien holder. It turns out the seller was playing hardball with his second lien holder and caused at least 6 weeks delay in closing. Due to absence of approval from 2nd lien holder I delayed my inspection, after threatening to pull out of the deal unless they had a solid letter from 2nd lien holder. My threat got an inspection extension, finally the seller lined up 2nd lien holder and we continued on a verbal promise that 2nd lien holder had approved all.
inspection: April 9, 2014 -- warning: pool is green
Contacted seller and said "fix the dam pool being green!"
appraisal: April 25, 2014 -- unable to complete appraisal due to green pool, please pay $100 for re-appraisal covering pool.
Shortly after: buyer wanted to hear that seller stepped in front of Greyhound bus. Note that appraisals are paid by the buyer. Green water not taken care of after two weeks notice cost me $100.
the end game: some time in early May. Like sausage sometimes you don't want to look too closely into what goes into it.
finalizing - agreed on a closing date but seller still playing games so buyer decides to push it to the limit. Noting that buyer is an investor intending to rent the property and closing near beginning or end of month benefits buyer/investor. Houses don't rent starting in the middle of a month. Buyer pushes closing date to May 23. Wanted to push it later but didn't want to find tipping point and lien holder approval letters expire next week.
signed the papers and handed over the check: May 22, 2014
closing: presumably May 23, 2014 unless the FedEx truck explodes enroute
Feb. 11 to May 23 = mmm... maybe 3-1/2 months. Closing a bit more than a week before end of month, a bit too soon to rent out June 1st but plenty of time to start high and work my way down until I find a suitable renter to move in July 1st. Cost me about 40 days of interest unless somebody wants to move in mid-month (not likely).
I've asked at least three people to please slap me silly if I ever bring up another short sale. Luckily I'm an investor so it wasn't like I had to move in any time soon. If you are intending to occupy your short sale as your new residence, please ask somebody to slap some sense into you.
This is my final report. Have fun with your short sales. My advice, don't do it unless you are an investor or have a very flexible move-in schedule.
Conclusion: no more short sales for me. There is no educational value in the second kick from a mule.
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