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updates below I found this thread yesterday and found it helpful. So I decided to join. Here's my timeline.
First Time Home Buyer (Short Sale)
Listing Price: $168,000 Offer: $168,000 Bank: Wells Fargo 5/3: House put on the market[/font] (as per listing agent, he already submitted all documents for SS a month prior to putting house and market so he can speed up the process and advised our REA that the BPO has already been ordered) 5/4: Viewed home & put a offer in for listing price 5/5: Verbal seller approval 5/6: Written contract from seller (submitted a updated pre-approval letter to send to the bank as requested from listing agent) 5/7: Offer submitted to bank 5/9: Signed and submitted Short Sale Arms Length Agreement Was informed that process should take 60 days since the Listing Agent did most of the work prior to house hitting the market. Does anyone have any helpful advice on the next steps that I should experience? and, anything that I can do on my end to help the process go faster. I know, I know, its a SS and its going to take long but we are so ready to move. thanks 5/16 I contact our REA and she tells me there is no weekly updates on SS. Is this true? I am getting a little frustrated with her lack of updates. 6/13 Seller's Bank Appraisal came in at $125k which is well below the listing price and our offer. Our agent received this info last week but gave the seller's agent some time to decide what they wanted to do. No response from them so we were told to sign the Amendment to Contract and fax immediately. 6/19 Received signed Amendment to Contract from sellers. 6/21 Notified by seller's agent that its in the review process and things are moving along. 6/30 Our agent let us go back in the house to view it again. Sellers left a bag of soiled food on the counter and the house smelled horrendous. 7/3 Found out from the sellers agent that the is a 2 liens on the house and the smaller of the 2 liens was approved. (We found sellers agent info and contacted him on our own) Our agent has yet to give us an update and we doubt she even knows about the 2 liens. 7/12 Sellers had to update their short sale package since its been over 30 days.
I have faith this is our home and do not mind the wait. We are well aware that short sales take a long time but its so frustrating when our agent does not give us information or updates.
Sounds like my short sale experience. I, like you, have faith as well - walk by it...and know that this is the house that God intended for me to be in.... I'm faithful, yet human, and still get frustrated. My seller's agent is useless and has been from the beginning and a lot of the frustration comes from having to depend on her to do her part. I have a wonderful relationship with the owner/seller of the home and that keeps me hopeful. My agent is on point (and constantly reminds me that she doesn't want me to walk away from something that is truly 'mine') and the Short Sale Team, with one hiccup, is on there job as well. I've read horror stories about Ocwen, but because this Team has worked with them before, I have hope for the process.
I've had to resign forms as well due to the expiration of some of the forms. Because my lease isn't up until September, I can hold out, but I am still asking for updates just so I know there is some process.
You started in May. I started in March....buckle your seatbelt.
Since my last post on 5/8/13 - when the seller and I agreed to use a short sale negotiating team, the following has occurred:
5/20 - received contract back from Short Sale Negotiting Team telling me that I had to resign the contract
5/29 - received call from agent that the seller's agent still had not sent the signed documents back to the Short Sale Team to be submitted. Threatened to pull out if the documents weren't sent to SST by COB 5/30. Documents sent to SST that night.
6/11 - Received update from SST that the "file was in review" and "BPO was being scheduled"
6/18 - Received update from SST that "the valuations came back. waiting on negotiator to review net sheet from inevestors for offer acceptance."
6/27 - Received update from SST that the "bank ordered second BPO because the other BPO expired." Wait...how did a JUST ORDERED BPO EXPIRE? Lost it....... had a call with the owner of the Short Sale Negotiating Company and he admitted that he misspoke with his update. That apparently, when the seller first initiated a short sale a BPO was done and submitted to the bank. THAT BPO expired (only last 45 days) therefore, they had to order a new one. I told him that the next time you MISSPEAK, your services will no longer be needed. The purpose for hiring your company was to be sure that information was rendered properly....
7/15 - Received an update that I would need to resign another Short Arm Affidavit. ...That was the last straw.
This whole process has been a rollercoaster. Today I had a mini-meltdown. My agent went into to 'save' mode and reminded me that this home was intended for me....I became so frustrated because:
1) the interest rate has gone nearly 1.5% since I put an offer on the house;
2) my lender is looking at me sideways because they think I'm getting played by Ocwen
3) updates just seem to be smoke that they are blowing up my behind to pacify me.
I understand the 'short sale' process, however, if there was actually some 'progress' that made sense, the process would make sense.
I can completely understand your pain. We threw in the towel not too long ago, you likely have a few outs in the contract if you review with your lawyer. Wasn't a long timeframe on ours like some of the folks on here, but we were getting strung along by the listing agent and were going to be homeless very soon with the only options to rent a house for a year or find an apartment that is big enough for a family of 5 and accepts a large dog. We also don't want to have to change our kids schools a couple times in the process.
After several weeks of nothing, one day we were told 3-4 days to get acceptance or a counter...2 more wks went by and nothing. Then was told 1-2 days, and that went by with nothing. Listing agent accidentally forwarded an internal email to our agent (from their admin) saying that they found out the bank assigned the wrong type of negotiator and that there is no timeframe for them to look at this because they need to focus on their other cases first....so what should they tell us. Listing agent was miffed because as they said to our agent, that we were only a few months into the process that it's a shame we moved on. Yeah a few months in, but no end in sight, or guarantee that the bank would accept our price since the prices in our area have climbed greatly since we had an accepted offer near their asking price, and rates going up daily to where it was going to cost us about $300-$400 more a month with us already at the top of our budget. Not to mention the roughly $15k in immediate repairs and appliances (since the owner is taking them) needed based on our inspection.
Loved the house, but couldn't take the uncertainty any longer and the interest rate rises.
Since my last post on 5/8/13 - when the seller and I agreed to use a short sale negotiating team, the following has occurred:
5/20 - received contract back from Short Sale Negotiting Team telling me that I had to resign the contract
5/29 - received call from agent that the seller's agent still had not sent the signed documents back to the Short Sale Team to be submitted. Threatened to pull out if the documents weren't sent to SST by COB 5/30. Documents sent to SST that night.
6/11 - Received update from SST that the "file was in review" and "BPO was being scheduled"
6/18 - Received update from SST that "the valuations came back. waiting on negotiator to review net sheet from inevestors for offer acceptance."
6/27 - Received update from SST that the "bank ordered second BPO because the other BPO expired." Wait...how did a JUST ORDERED BPO EXPIRE? Lost it....... had a call with the owner of the Short Sale Negotiating Company and he admitted that he misspoke with his update. That apparently, when the seller first initiated a short sale a BPO was done and submitted to the bank. THAT BPO expired (only last 45 days) therefore, they had to order a new one. I told him that the next time you MISSPEAK, your services will no longer be needed. The purpose for hiring your company was to be sure that information was rendered properly....
7/15 - Received an update that I would need to resign another Short Arm Affidavit. ...That was the last straw.
This whole process has been a rollercoaster. Today I had a mini-meltdown. My agent went into to 'save' mode and reminded me that this home was intended for me....I became so frustrated because:
1) the interest rate has gone nearly 1.5% since I put an offer on the house;
2) my lender is looking at me sideways because they think I'm getting played by Ocwen
3) updates just seem to be smoke that they are blowing up my behind to pacify me.
I understand the 'short sale' process, however, if there was actually some 'progress' that made sense, the process would make sense.
7/16: Just received an email/text from my REA. Sellers bank is requesting that the seller sign an "acknowledgement and agreement form and loss funds letter" as well as requesting that my lender provide a 'good faith estimate' ... (now I have to go google what all of this is.. )
I can completely understand your pain. We threw in the towel not too long ago, you likely have a few outs in the contract if you review with your lawyer. Wasn't a long timeframe on ours like some of the folks on here, but we were getting strung along by the listing agent and were going to be homeless very soon with the only options to rent a house for a year or find an apartment that is big enough for a family of 5 and accepts a large dog. We also don't want to have to change our kids schools a couple times in the process.
After several weeks of nothing, one day we were told 3-4 days to get acceptance or a counter...2 more wks went by and nothing. Then was told 1-2 days, and that went by with nothing. Listing agent accidentally forwarded an internal email to our agent (from their admin) saying that they found out the bank assigned the wrong type of negotiator and that there is no timeframe for them to look at this because they need to focus on their other cases first....so what should they tell us. Listing agent was miffed because as they said to our agent, that we were only a few months into the process that it's a shame we moved on. Yeah a few months in, but no end in sight, or guarantee that the bank would accept our price since the prices in our area have climbed greatly since we had an accepted offer near their asking price, and rates going up daily to where it was going to cost us about $300-$400 more a month with us already at the top of our budget. Not to mention the roughly $15k in immediate repairs and appliances (since the owner is taking them) needed based on our inspection.
Loved the house, but couldn't take the uncertainty any longer and the interest rate rises.
I had the same conversation with my REA....drawing dates in the sand as to when I was going to pull out. I started looking at other properties, but there is NOTHING out there compared to what I have. Plus, like you said, house prices are going up AND interest rates....I still have to wait to see what the bank is going to come back with...praying that they accept MY offer and not waiver from that....
So, I have a date in my mind to throw in the towel....I just pray that everything will be done before then.
List price $499,900
Offer $425,000
2 mortgages, one is BOA
6/22/13-Offer made
6/25/13-Offer submitted to bank
7/9/13-Bank requests more paperwork from seller 7/15/13-Bank asks for a few adjustments to contract: we have to pay closing costs & home warranty, owner wants to take refrigerator. These were things we already anticipated. And while it hasn't been said outright, we feel like this (paying closing costs) might be the bank's counter offer...but I have been wrong before!
3/5/13 - Offer on townhouse accepted by seller. $250k on SS with one loan from Chase.
3/7/13 - listing agent wanted 3% earnest money from
Us to escrow company right away so we turned that in.
3/17/13 - our real estate agent informed us that the listing agent has submitted the short sale package to Chase. Escrow has not opened yet because they need more documents and then they will cash the earnest money.
3/22/13 - our RE agent mentioned she is getting an updated HUD statement to the bank. Chase countered and wanted us to pay for the transfer fees and back HOA fees. They also countered at 25k higher at 280k. Our RE agents are trying to get the bank to pay the fees and accept 260k.
3/29/13 - Sellers' bank is requesting HOA back fees invoice from the association. This document is holding up the approval.
4/2/13 - Back HOA fee invoice sent to bank.
4/12/13 - REA said the SS lender had an appraisal done on the townhouse.
4/26/13 - file completed but reassigned to negotiator in USDA loan department. Once reviewed by negotiator, going to be submitted to investors to approve.
5/1/13 - our REA said we need to sign the addendum for the counter we issued a month ago.
5/24/13 - REA said bank requested another HUD and it was sent this past Wednesday.
5/30/13 - received email that the negotiator approved the short sale! But now the file is being sent to the investors for final approval. My REA says it may take about 2 weeks.
6/28/13 - verbal approval
7/8/13 - written approval received. Only 3 weeks to close, date 7/31/13. Foreclosure date of August 5th.
7/11/13 - home inspection completed. Loan disclosure signed. Townhouse sale disclosure signed.
7/16/13 - Chase agreed to extend closing to August 20th. Foreclosure sale has been postponed to August 30th. Looks like we might actually get this house!
List price was $79,000, now $85,000 (after appraisal/BPO)
Offer $79,000
One loan (FHA) with Wells Fargo
4/17/13-Property listed in MLS
4/19/13-Saw property for first time
4/21/13-Second viewing of property, submitted offer at list price/no concessions. (This house is beautiful!) Property scheduled for sheriff auction on 4/25/13
4/23/13-Offer verbally accepted by sellers, pulled from sheriff auction by Well's Fargo attorney
4/25/13-Contract signed by sellers
4/26/13-Property goes 'pending' in MLS
5/29/13-FHA appraisal completed
6/7/13-preliminary final HUD-1 sumbitted
6/18/13-Signed Arm's Length Affidavit from Wells Fargo (actually had their logo on it!). Sellers, Seller's agent, title company had already signed.
6/20/13-Rec'd email from my REA about increased price in MLS (list price up $6,000). Listing agent did not bother to let my REA know price would be increased and when asked by my REA if that was the approved short sale price the listing agent stated "the bank asked us to write an addendum for that amount because FHA wanted the change. Still no word yet on what they are accepting". My agent thinks the 85k is what the house appraised out at, but as I understand it the FHA Approval To Participate letter should have specified a minimum amount needed to satisfy the deal.
6/24/13-Locked my interest rate since the mortgage industry has lost its collective mind thanks to Bernanke's comments last Wednesday. Since I put in my offer the rates have gone up an entire percent and my closing costs have gone up $1,500. My mortgage broker says the listing agent called him this morning and wanted info on my loan for the bank, so I'm hoping that means we're almost there.
7/3/13-My REA got an email from the LA saying "I just received a message through equator...They should let us know their decision on the offer sometime between 48 hours and 7 business days." So, 7 business days puts us at having an answer by 7/12/13. I doubt anything will get done by the end of this week because of the holiday so I'll just hope that they can get it together in the longer timeframe. Hopeful, though!7/6/13-Suprisingly, I rec'd an email from my REA forwarded by LA stating "The bank has come back and is counter offering at 85,000. They are asking for your highest and best. They are also asking for language to be added that states closing date needs to be on or before 60 days after short sale approval." My REA apparently correctly guessed that the appraisal value was $85K.
My original offer asked for no concessions (ie; closing cost assistance) but if they want $85,000 I'm assuming my closing costs are going to be too much for me to handle without some sort of concession. I don't think that a counter offer of $85,000 with a percentage of closing assistance or specific amount of closing assistance is ridiculously off the mark...the bank only has to net 88% of the appraised value, right?
I've got a call in to my mortgage broker to get some specific numbers but now I just want to be sick. I don't want to lose this house!!!
7/6/13-My mortgage guy redid the #'s for me and I decided to accept the 85K counter but ask for a $2500 closing cost assist. Emailed my REA a bit ago so, I guess we'll see what happens...
7/10/13-Bank came back with $82,000, no closing cost assist and approval to come in one week!! Of course, I'm accepting and will be signing the addendum in about an hour!! I'm going to get my house!!! 7/12/13-Signed loan disclosures with my mortgage broker, file submitted to lender with all W-2's, pay stubs, bank statements, etc...
7/16/13-Mortgage file now in underwriting per my broker, and we should get the conditional approval on 7/17/13. Broker thinks we should be able to close on 8/5 (my rate lock expires 8/8) and my daughter will have to switch schools (and school starts 8/13/13) so I'm hoping that we can get all of this done before that. Still waiting on written approval letter from Wells Fargo, but they requested another pre-HUD-1 form so my REA is saying we should have the approval letter by the end of this week. 7/17/13 - Having a very stressful day regarding not being able to do ANYTHING. Closing and moving dates are looming, yet tenative. I can't make myself start packing because I have no concrete dates. I can't give my landlord notice yet, but I don't want to wait too long otherwise I may have to pay another entire month of rent...I just want to be able to plan something. UGH.
Hello all - I've been lurking in this thread for a few months and thought I would share my short sale experience since you all have helped me through this process immensely.
Listed: 4/02/13
Asking Price: $325,000 Paid $450,000 in 2007 - 2 Banks (Indymac/Onewest & Citimortgage) plus 2 property liens (Odds are stacked against us!)
Viewed House: 4/27/13
Offered: 4/28/13 $325,000 with $3,000 in closing assistance (perfect house, land and location) 6 acres. Of course we didn't know it was a short sale until after we viewed it and already fell in love with it! We've been looking for a year and half and this was the first house hubby and I agreed on. We were told the Sellers were approved for a short sale, but the listing price has not been approved by the bank yet. LA assured us she has worked with these banks before and their SS process is streamlined (whatever that means!) and that they would need 60 days to close so we set the closing date for 6/28/13. I looked the LA up, she is experienced in SS's and actually specializes in distressed properties......that's half the battle at least.
Sellers Acceptance: 5/03/13
Escrow Opened: 5/06/13 earnest check deposited
We didn't know much about SS except that they take a long time. We're renting, no big deal.....we can wait. *sigh
Signed SS Addendum: 5/03/13 and dated for 5/24/13
5/24/13: SS addendum expiring, I called my REA and she said LA will need 60-90 days for closing....bummer, but again....we can wait. Have not heard anything else.
Signed SS Addendum Extension: 5/28/13 and dated for 6/07/13 - Was told the BPO was done earlier this month. (That would have been nice to know earlier!) Results.....confidential of course. Was also told that Sellers have completed their hardship package. What! We were told they were already approved for a short sale and that just the listing price had not been approved with the bank! I'm a little worried, this is a log home. We're doing an FHA loan and they are very specific with comps being only 6 months and within 6 miles and we need 3 of them! Really....3 Log Home Comps?! Found the comps in a about a week, (well hubby and me found them, REA didn't!) now I hope they don't become too old by the time we close.
2nd Property View: 6/08/13 - Just needed to see it again! While we were there, Sellers pulled our REA aside and said their LA said the SS was going through and that their only concern was that we were going to walk away. Hmmmm....seems like they have a lot more information than us, we've heard NOTHING!
Signed SS Addendum Extension: 6/08/13 and dated for 6/27/13 - Just making sure we don't lose this house on a technicality.
6/11/13: Received info that 2nd bank (Citimortgage) is assigning negotiator but the 1st bank (Indymac/Onewest) wants the Sellers to be 2 months behind on payments and then they will re-run their file for approval after the 16th of June. *Double Sigh
6/20/13: Getting frustrated with vague responses from my REA, so I called the LA. Was told 2nd bank has been approved and written approval will be sent in 3-5 days. 1st bank has been assigned negotiator. One of the two liens on the property is currently being negotiated and she doesn't think it will be a problem. Finally - some answers! I'm okay with the waiting, I just want communication!
6/26/13: I called the escrow office for answers. She assured me the LA is working on it and in fact just spoke with her yesterday. One of the two property liens has been released and the other one is close to being resolved. Yay! More answers....now why can't my REA do these phone calls?
6/27/13: I called LA (same problem with my REA) was told 2nd banks written approval letter has been received and they want to close by 7/28/13, confirmation of property lien being released and second property lien being resolved and 1st banks docs are now with the investor. LA assured me the 2nd bank will extend closing date once 1st banks approval has been received. I think we're close now! I talked with my lender today and I need at least 30-45 days to close on my end. We're meeting with our REA tonight to do another SS Addendum Extension and extend the closing date to 8/16/13.
We are waiting to do the appraisal and inspections until we get the written approval from both banks, don't want spend money if this falls through.
It seems like a long time, though I know our SS experience is actually going pretty fast. I just hope it continues to go as smoothly and we can actually close in August. I'll keep you posted on any further updates - perhaps my story can help someone else. Good luck everyone!
6/28/13: 1:30 PM REA emailed me and said that escrow confirmed 1st banks written approval in hand!
6/28/13: 5:05 PM REA called - escrow was mistaken. Bank approval was for another SS and was placed in our file by error! Really! Just our luck!
7/05/13: Sellers signed new SS addendum and new closing date. 1st bank requested updated HUD. I hope we're almost there!
7/09/13: 7:23 PM received email from REA - 1st bank (onewest) send the "Arms Length Affidavit" for us to sign.
7/10/13: 8:00 AM sent signed "Arms Length Affidavit" to my REA and copied LA on the email. I hope we're close. Interest rates have me freaking out a little bit here!
7/11/13: Confirmed "Arms Length Affidavit" was signed by all parties and submitted to the bank.
7/13/13: Received verbal approval from 1st bank. Was told written letter of approval will come by the end of next week. (I can't believe somebody at the bank was actually working on this on a Saturday!) Not holding my breath, I'll believe it when I see it! LA is confident second lien on the property will be settled as well. Still hoping to close on the 16th of August if possible. I'll keep you posted!
UPDATE 7/18/13: Written approvals from both banks are in! Still working on resolving the last lien. Inspection is scheduled for tomorrow. Banks want to close August 14th. Whew.....my Lender is going to be busy! Hope everything goes smoothly.
12/15/2012 Submitted offer on house
12/16/2012 Seller accepted offer
12/31/2012 Home Inspection completed
1/3/2013 Short Sale Submitted
1/15/2013 Signed Arms Length agreement
1/21/2013 Bank Counter Offers for 3,000 more
1/22/2013 Counter offer accepted
2/4/2013 BPO ordered
2/5/2013-4/29/2013 We heard nothing and just waited
4/29/2013 Official Short Sale Approval
5/6/2013 Apprasial orderd from my bank
5/13 Recieved Appraisal
5/28/2013 Mortgage Approved
6/09/2013 Final Walk through
6/11/2013 CLOSED!!!!!
I will say, that I am happy that I now have my own home but I will probably never do a short sale again... My experience has been borderline traumatizing...... I am serious when I say this... If I buy a house again I will not do a short sale.... This is not to say that ALL short sales will be like the experience that I had but for me... NEVER AGAIN!!!! Good Luck to all of those that are going through the process, I wish you a speedy short sale approval and congrats to all who have closed on their homes!
Congratulations!! I completely agree, short sales are terrible. We ended up pulling out of the shortsale and fell in love with a new home. We close on August 16th
Since my last post on 5/8/13 - when the seller and I agreed to use a short sale negotiating team, the following has occurred:
5/20 - received contract back from Short Sale Negotiting Team telling me that I had to resign the contract
5/29 - received call from agent that the seller's agent still had not sent the signed documents back to the Short Sale Team to be submitted. Threatened to pull out if the documents weren't sent to SST by COB 5/30. Documents sent to SST that night.
6/11 - Received update from SST that the "file was in review" and "BPO was being scheduled"
6/18 - Received update from SST that "the valuations came back. waiting on negotiator to review net sheet from inevestors for offer acceptance."
6/27 - Received update from SST that the "bank ordered second BPO because the other BPO expired." Wait...how did a JUST ORDERED BPO EXPIRE? Lost it....... had a call with the owner of the Short Sale Negotiating Company and he admitted that he misspoke with his update. That apparently, when the seller first initiated a short sale a BPO was done and submitted to the bank. THAT BPO expired (only last 45 days) therefore, they had to order a new one. I told him that the next time you MISSPEAK, your services will no longer be needed. The purpose for hiring your company was to be sure that information was rendered properly....
7/15 - Received an update that I would need to resign another Short Arm Affidavit. ...That was the last straw.
This whole process has been a rollercoaster. Today I had a mini-meltdown. My agent went into to 'save' mode and reminded me that this home was intended for me....I became so frustrated because:
1) the interest rate has gone nearly 1.5% since I put an offer on the house;
2) my lender is looking at me sideways because they think I'm getting played by Ocwen
3) updates just seem to be smoke that they are blowing up my behind to pacify me.
I understand the 'short sale' process, however, if there was actually some 'progress' that made sense, the process would make sense.
7/16: Just received an email/text from my REA. Sellers bank is requesting that the seller sign an "acknowledgement and agreement form and loss funds letter" as well as requesting that my lender provide a 'good faith estimate' ... (now I have to go google what all of this is.. )
7/19: Received text from REA.... Seller's bank is requesting tax bill and utility bills from seller...still no word on the 2nd BPO or a counter offer. I guess no news is good news
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Wait...how did a JUST ORDERED BPO EXPIRE? Lost it....
...That was the last straw. 
)
We've been looking for a year and half and this was the first house hubby and I agreed on. We were told the Sellers were approved for a short sale, but the listing price has not been approved by the bank yet. LA assured us she has worked with these banks before and their SS process is streamlined (whatever that means!) and that they would need 60 days to close so we set the closing date for 6/28/13. I looked the LA up, she is experienced in SS's and actually specializes in distressed properties......that's half the battle at least.
*sigh
Finally - some answers! I'm okay with the waiting, I just want communication!
