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Well, after 4 months it looks like the short sale we bid on has finally been approved.
We got a call last night from our Realtor telling us not to get too excited but that it looks like our short sale has been approved. The listing agent is going to go over the details that were sent to her and will get back to our agent today.
So, what does this mean? What are the steps from here? I never actually thought we'd get here but now that we have... I can't help but be a tiny bit excited.
And so does it mean that our wait is virtually almost over? That we will close within a month?
Thank you for your help! I really appreciate it!
Well, you are definitely making progress. It depends on the terms the bank will want for their approval. They may want a higher price than you offered, or other conditions that may be of concern. That's why your agent said not to get too excited yet. You'll have to wait for the specifics from your agent.
I was in the same situation as you a few weeks back. After 8 months the bank finally approved the short sale. The next step for us was to have the seller approve the terms and then we would have an approved contract. After about 10 days we found out the seller did not like the terms of the short sale and chose to have the house forclosed on instead.
The key statement the seller did not like was:
"The bank and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above"
If I were the seller I would not like this either. He asked that this statement be removed and the bank said no. So after 8 months I think I have to finally give up. Maybe I can buy the house once it forcloses. Do any realtors out there know if this statement seem typical for a short sale? Why would a seller take a chance he could be sued for money at a later date and have to file bankrupcy. A forclosure would have to look better than a bankrupcy. I personally think the bak could be pressed to have this statement removed. It seems like it would be in their best interest but the sellers realtor was dealing with the bank and I can't control how he handles his business.
...
The key statement the seller did not like was:
"The bank and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above"...
It's typical. Banks want the option to go after the loss they will take on the sale.
It may be possible to negotiate to have it removed (notice the "unless agreed otherwise" phrase). Also as noted, it may be prohibited by law such as in Arizona which is a non-recourse state.
Prices have finally declined enough for the bank to take your four month old offer, you think.....
I bought in SUmmerlin, last January 2009. The next door neighbor went through a loan modification with WFC in October 2008. They gave her a 6.5% fixed. She never made one payment. June 2009, they do a short sale, and actually get a little bidding going. They "accept" 45,000 on a place she paid 124,900 for in 2004. Meanwhile, in September of 2009, I sell my place in five days and close three weeks later. I look at the Assessor records today. She is still listed as the owner. Lots of wasted time and money, because the realtors are lying through their teeth about the shortsale process.
... Lots of wasted time and money, because the realtors are lying through their teeth about the shortsale process.
And what lies are we telling?
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Hope all goes well
