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I have recently began the process of a short sale on a home and am trying to get some opinions on how quickly we can get a bank approval. In Dec 2013 the first buyers walked when BOA countered their offer of $255,000 with $265,000 plus $2,700 in overdue HOA fees. However another buyer jumped in right after the first buyers walked. The bank then approved the $265,000 plus $2,700. After about a week these buyers also walked.
Fast forward to March 13th 2014. We submit an offer of $265,000 plus $2,700 and it is accepted by the seller within a few days. On March 20th it is submitted in Equator to BOA. Now the listing agent has told us we should receive approval within 60 days. Are we more likely to get this short sale quicker since all the paperwork on the sellers side is complete and the bank approved the $265,000 plus $2,700 already for the other two buyers that walked? I am thinking that the listing agent is just saying that it will approve in under 60 days, but I have heard BOA is quicker with approvals? Any thoughts?
Second, you will get different answers from everyone. Some will tell you that because it was originally approved, it will go quicker. We ratified the contract on ours Jan 31, and closed this past Friday, a tick under 2 months. In our situation, there was a previous buyer who walked after the inspection. We have no idea what they offered, but we went in at the list price and it was approved. I do believe that since there was already an approval, that it helped expedite things for us. However, I don't know how true that is because we don't know if there WAS a bank approval on the previous contract. We assume so because the buyers didn't back out until after the inspection, which our agent told us would not be done until a bank approval came (although they may have done the inspection anyways w/o approval).
With the sellers already having given the bank all the paperwork previously, that definitely will help speed along some of the process (sometimes the delays come from sellers not getting all the financial information to their bank, which causes the bank to take longer to determine if the seller qualifies for a short sale, which then delays ordering the BPO, etc, etc). So you have that going for you.
Any idea why the previous buyers walked after the bank approved their offer? That being said, given you offered the same as the previous offer that was accepted, it *should* help. However, each short sale is different, and if it gets assigned to a different negotiator, they could possibly review everything again.
Sorry for the long answer, even though it is someone of a simple and non-helpful answer. In our case, I believe it did help speed it along. However, if you read through many of the posts on this forum, you can find that just because there was already a bank approval on a previous offer, does not mean it will speed things along.
Thanks for the information! Congrats on closing on the short sale.
The first buyers walked when they offered $255,000 and the bank countered at $265,000 plus $2,700 HOA overdue fees. I'm not too sure why the second buyers walked. There also has not been an inspection on the home yet. Did BOA own the mortgage on your short sale?
I can understand the first buyers walking, but not the second if BOA accepted their offer. Oh well, your gain I suppose!
We had to deal with Wells Fargo with ours. Of course, ours was a pleasant experience, but others have had nightmares. Same with BOA. I have read stories on this forum from people who dealt with BOA and everything went great. Others not so much. A big thing will be if there are 1 or 2 lien holders on it.
Yeah, I was afraid of that. Anyone else have experience with a BOA short sale?
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