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Southeastern MA
HAFA Short Sale Processed and Negotiated by an Attorney
1 lender, Wells Fargo. We've been told there is an investor that owns the loan and Wells Fargo is servicing the loan.
May 2014 - House Listed
May-Aug 2014 - House price drops multiple times for 10s of thousands of $$
Aug 31 2014 - Our offer for slightly below list price is accepted by home owner. Now to wait for the bank's approval.
Oct 24 2014 - Wells Fargo requests everyone to sign HAFA affidavit, exciting to actually see Wells Fargo letter head ! Until this point, I wasn't convinced they were actually involved yet. This document has a Nov 15th closing date.
Nov 6 2014 - And we're still waiting... every week our offer expires on the Wednesday, our agent can't get a hold of the listing agent until Friday, and we extend again.
My 2 big questions at this point is how much longer (of course no one can answer that) and how much more money are they going to ask for. If it's the difference between our slightly below list price offer, we'll live.
We're nervous they could potentially ask for more than the list price when our offer was accepted (we think it's worth quite a bit more than our price if it was sold through a conventional sale, of course). Could that happen at this point? I'm slightly confused on when they would get a BPO when they would use it.
Thanks and good luck everyone
UPDATE
Nov 21 2014 - Our Realtor forwarded us an email showing progress. WF asking for our attorney's name to fill out the HUD statement so the "negotiator" can move forward. Not sure why a HUD is already being filled out before we've received an acceptance letter, done our home inspection & title 5. Anyone have insight into where we are in this process?
UPDATE
Dec 31 2014 - Update from the other Realtor saying the property has 2 liens on it, totaling 2500. They didn't say what from. The bank pulled their HAFA short sale status and proceeding with a "regular" short sale. Said they will respond to our offer within the next 20 days. We extended our offer for 30 days through Jan 31st.
As the market gets worse and worse for buyers, we're concerned the price is better now and people will come in with higher offers. How likely is it that they could just drop us and pick another buyer if that were to happen?
We also have no idea if they have to start over with now doing a traditional short sale or if it's as simple as the process continuing normally, they just don't get HAFA benefits. Anyone have any insights ?
2/7/2015 - Our latest 30 day offer expires so we told our agent to tell their agent we're strongly considering putting an offer on another house at the end of the week (we were).
****Thursday came around and our agent forwarded a screen shot from the seller's agent email coming from Wells saying they've accepted the short sale !!!!!!!!! and it's been sent to the closing department where they will send an acceptance letter*****
5 months and 5 days it took to get an acceptance.
Next day our Realtor says the letter came from Wells but they're not actually accepting the offer we presented, which was full price but 5,000 towards closing. We have to pay the closing costs. A little ridiculous they can tell us it's been accepted but then tell us 24+ hours later they didn't actually accept the terms of the offer.
We caved, what else can we do at this point after waiting 5 months ? Home inspection on Monday AM, hopefully title V in the middle of the week and we go from there.
UPDATE
3/6/15 - A little late but we got the keys and closed on this date!!! Just about 6 months start to finish. Everything went quickly and relatively smoothly from acceptance to closing.
Not sure I would ever do this process again. I did it while my wife and I lived in my parents basement so it was a little tough..
I have been in contract on a short sale since mid December
- Offered 180k from asking price of 200k (house needs work, fair condition)
-same exact house sold for 200K (foreclosure) So I increased my offer to 200K (my last and final offer)
waited about a month, bank did BPO which came back at 225k (inflated)
Listing agent told me there is no way that anyone will pay 225k for this house which is true, but he did re-list it back for 225k .... a month passed being still active on the market with no offers, recently 2 weeks ago listing agent reduces it to 214k (two weeks later no offers as of yet)
So I called the third party negotiator (attorney handing the short sale) she notified me that they are doing "marketing" meaning that they will drop the price in a few weeks, so I am not sure how this will work
All I have to say is that I am tired of waiting with false hope and losing on other opportunities
Btw I am working with the listing agent meaning that he will represent me and the seller.
My advice-unless it's a really really good deal and there is nothing else out there, don't let it stop you from going with another house. It could go on and on for a year or more like mine and still not close.
At least you are able to talk to a live person though, so there could be hope.
1 lender (that I know of): Bank of America originally but I believe it was transferred to M&T
2/9/15 - Seller signed/ accepted offer (Listed at 199k, offered 190k) Also... the house went under contract last April and then went back on the market about 4 months later because supposedly the original buyer walked due to the time (supposedly the bank countered at 205k then). It sold of 181k in 2011.
2/16/15 - Home inspection (on our end) - nothing major
2/23/15 - M&T Bank confirmed receipt of the short sale package
3/17/15 - Our Realtor told us she heard that a 2nd appraisal/ BPO was conducted
3/23/15 - Signed arms length affidavit
From the sound of it, the seller seems motivated to get out of the house and is very cooperative.
Any thoughts on how far a long we are or any other thoughts/ recommendations. Really hoping we hear back from the bank by the end of April at the latest. Any other things that have to be done (that we would hear about) before the bank will get back to us?
Early September 2014: offer and all documents successfully sent to lender (US Bank).
.
.
.
February 23- Underwriting stage...
April 2, 2015- Bank is getting house appraised? (This supposedly already happened) Sale has been outsourced to Service Link...are they doing everything all over again.
I am the seller. At this point, I have no idea what is happening. Attorney is waiting on a call back. I'm just frustrated and tired of it all.
1 lender (that I know of): Bank of America originally but I believe it was transferred to M&T
2/9/15 - Seller signed/ accepted offer (Listed at 199k, offered 190k) Also... the house went under contract last April and then went back on the market about 4 months later because supposedly the original buyer walked due to the time (supposedly the bank countered at 205k then). It sold of 181k in 2011.
2/16/15 - Home inspection (on our end) - nothing major
2/23/15 - M&T Bank confirmed receipt of the short sale package
3/17/15 - Our Realtor told us she heard that a 2nd appraisal/ BPO was conducted
3/23/15 - Signed arms length affidavit
3/27/15 - Updated HUD sent to buyers lender.
From the sound of it, the seller seems motivated to get out of the house and is very cooperative.
Any thoughts on how far a long we are or any other thoughts/ recommendations. Really hoping we hear back from the bank by the end of April at the latest. Any other things that have to be done (that we would hear about) before the bank will get back to us?
So I'm far enough along that I figured I'd share my situation.
3/4/15 - Condo unit listed for sale
3/7/15 - Site visit, talked to listing agent and got some information, decided the unit is a good fit for me so I make a verbal offer. Apparently there was a previous all cash buyer who backed out after negotiating a sales price with the bank (or just plain disappeared according to the listing agent) and since the unit had a price agreed upon on by the bank I offered the same amount but with a mortgage.
3/10/15 - Offer submitted to Seller and accepted and submitted to Bank. 1 lien holder listed for an unknown amount.
3/13/15 - Attorney Review completed
3/19/15 - Home inspection. I opted to take the risk and do the inspection early incase there were any deal breakers. Inspection found that the heat wasn't work.
3/19/15 - 3/25/15 Gathered prices to replace the heat pump/air handler and resubmitted my offer asking for a credit
4/14/15 - Listing agent reaches out and says the banks only asking him to change some things on the HUD form and it looks like they're gearing up to approve. I unleash the mortgage hounds to get things rolling.
4/20/15 - Title company sends a report to my attorney showing some liens and a possible judgement against seller.
4/24/15 - I got a verbal acceptance of my offer from the bank but only if I remove the repair money. I figured I'd try but the place is still worth it if I have to pay for replace down the line so I move forward. Hopefully I get my written approval in a few days. I also notify my attorney I'm not paying for any of the sellers liens which is something we had talked about during attorney review.
Short sale condo, only 1 loan, no other liens or issues that I know of, only complication is its tenant-occupied
- I offer 25k over asking - doing a CMA with the nicest possible comps would put its value at 22 below my offer in my opinion, and that's not even considering the interior condition (gonna need new carpet and flooring), but its a competitive market and I'm tired and want to be done house hunting and I think its fair to go high
3/5 - offer accepted by seller, submitted to bank
3/14 - sign some extra short sale addendums
3/17 - first viewing of property (tenant wasn't allowing viewings)
3/21 - re-sign everything with wet signatures, no digital allowed
3/23 - bank asks for 45 day escrow
3/31 - letter received that seller qualifies for short sale, all documentation for that uploaded
4/1 - bank was trying to do bpo/appraisal but hasn't been able to get in to property
4/2 - sign arms-length stuff saying I'm not a bank employee or relative
4/10 - bank appraisal done
4/17 - error with appraisal? bank sending back for correction
4/28 - Listing agents been trying to follow up, bank not being communicative
5/1 - bank says appraisal came back at my offer price, wants close of escrow to be June 30th now?
5/5 - my offer will be expiring tomorrow, no signs I'm getting an approval letter any time soon though, not sure what to do, if I need to extend, or who with
This is the most uncomplicated short sale there is. There's no secondary loans taken out on the property, no lienholders to argue with, I don't even have a lender I'm a cash buyer. I'm just sitting here waiting to close and the bank is all "let's make closing June 30th" WHYYYYYYYY. I don't even know if June 30 is a real date they have in mind or if its a stalling thing, I guess if they want a 45 day escrow and they want to close June 30 the approval letter should be coming in May 15th or so? But why not just do it now if they're going to?
Here's my time line so far...
3/21-walk through house.. My husband and I are instantly in love!
3/22-write an offer
3/24-offer accepted by seller
3/30 I emailed sellers agent because my agent is pressuring us to cancel the contract. Sellers agent replies to hang in there and not cancel. He will keep us posted on any updates.
4/07-I emailed sellers agent for updates. Agent replies the seller is in town (she lives in California and we're in New York ) and she will be submitting more paper work to him.
4/10 - I recieve an email from sellers agent, she doesn't have 2014 taxes done, he's going to try to have it waived by sellers bank (Citibank)
4/13- I emailed sellers agent asking if the ss package even been submitted to bank? ���� he replied it has been submitted and his response ..Hi Norma,
It has been submitted, in fact I have taken over the process from the attorney, you spend a fair amount of time on hold etc and I have a full time admin person who is knowledgeable at short sales. Her and I are in contact with the Citicorp individual directly, should have solid info shortly. Thanks for hanging in with us.
4/21- received an email from listing agent, he thinks 2014 tax issues are resolved
4/29 - contract expires �� I asked my agent (he sux) for an extension and he tells me we didn't need one.. What?!
4/29- I emailed listing gent to make sure my agent was correct... No response! ��
5/3- I called listing agent and thank God he answered �� so apparently he was out of town and I was on his call back list.. So he tells me now there's an issue with sellers 2013 taxes ���� but she will have it resolved by the end of the month and we will hopefully be able to close by July..
I'm staying hopeful and positive.. I'm claiming that house mine in Jesus name!!
I will update soon, I hope....
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Short sale since Dec 20
