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Short Sale Question....Need advice.

Hello! So my husband and I found a house that we LOVE it was listed at 160,000 so we offered 150,000 and asked for 5,000 towards closing the seller accepted. Our $2,000 deposit was cashed and we were offically in escrow, well we were waiting for the approval from the bank, which we were told would be easy, well thirty days later the bank did not approve our offer and they counter offered at 195,000...we said NO WAY....we countered at 165,000 no closing, this we felt was a fair price. Our agent said the bank was firm, but we could try. The bank lowered their price to 180,000 we countered at 170,000 and we said that was our best and final. The bank said 175,000. We said. No Thankyou (unlike them, when we say this is our best and final we meant it, the house needs work and this is where we were comfortable)we really were out of our league too...we really wanted to be at 165,000 or less, so we were already pushing it by asking 170,000. We don't want to be house poor and we are a one income family so we need to stay within our means. The bank then said ok what about 173,500. (I know its only 3,500 more, but we couldn't) so we said No, again and told our agent to close escrow. Then our agent came back and said this was the banks final bottom line 171,000. So we accepted the offer. ($1,000 was something we could live with)So we are still in escrow, now our lender is ready he has all our paper work, he says he can get us closed in 45 days or less, but we are waiting for the bank to send over the final signed contract, it has been about 3 weeks since we have come to the agreement of 171,000. How long does this take? I ask our agent and she says be patient, and never answers my questions and when she does answer my questions she tells me something that is not accurate. Like when she told us "if the bank says 195,000 then they are not going to budge." well guess what they did they budge $24,000. If any of you are experienced in short sales, can you explain to me what I am in for? What is the process? How long does the lender take to sign the final approval letter? Thanks in advance. Wish me luck. Oh, we live in California...if that matters. I want to email the selling agent, and ask her questions but I don't want to be rude, or out of line...so hopefully you ladies can help.

Answer Question
 
abbyg

Asked by abbyg at 4:51 PM on May. 5, 2011 in Money & Work

Level 9 (334 Credits)
Answers (11)
  • In a short sale the bank ia allowing a delinquent client to sell as quick as possible to 'get off the hook' there is usually no asking the seller to fix anything and chances are there are back taxes owed on the property as well. Check the back taxes!!
    Anonymous

    Answer by Anonymous at 4:54 PM on May. 5, 2011

  • wont that be checked in title? or I will have to check myself?
    abbyg

    Comment by abbyg (original poster) at 4:56 PM on May. 5, 2011

  • You will be fine with your titile insurance. The title company should do a search. If there is a problem, then you can use your title insurance . . . so make sure you pay for a policy.

    Short sales can be a really long process, although if the bank is talking at all, then you have finished most of your wait. Please don't be afraid to ask the realtor all the wuestions that you need to know.

    1) Is there a foreclosure process occurring and when is the trustee sale? Are we sure that this home won't be up at auction before the short sale goes through?

    2) How much longer should we wait? What is holding it up? Is it possible that this price will not get full bank approval?

    Good luck! I hope everything closes soon!

    You realtor can get alot of info by calling the bank and asking. Knowing these details might be helpful for you in your planning.
    ImaginationMama

    Answer by ImaginationMama at 5:07 PM on May. 5, 2011

  • Holy crap, what a horrible realtor. You should have countered with $145,000 when they came back with $195,000 or should have not countered at all. It's a short sale meaning that they bank is trying to suck as much money as they can out of an offer. If there are no other offers or interest in the house right now there's NO reason why you should have paid MORE than the initial listing price. Seriously... I would have told the bank to shove it, if they don't sell the property they'll lose a lot more money, they have incentive for settling with an offer.
    miss_lisa

    Answer by miss_lisa at 6:24 PM on May. 5, 2011

  • I am a Realtor here in So Cal. The short sale process can be very long I had one that took 7 months to close. The biggest problem is that bank has more work than they can handle with all the short sales and foreclosures. Stay strong and sit tight and be ready to wait a bit longer. If you really want the house you will have to wait until the bank is ready. Good Luck. If you have any questions send me a note.
    voni681

    Answer by voni681 at 6:39 PM on May. 5, 2011

  • First of all... Good for you for being so firm! Secondly, what a great deal. I'm not sure where in California you are, but that seems like a great price. My Sister just closed escrow on a Townhouse that was a short sale in So. Cal. It did take a bit longer than a regular sale, but it wasn't too bad. It was very stressful for her. The bank kept asking for all kinds of paperwork. She almost felt like it wasn't going to close. She wasn't positive that it was going to close until it finally did. Every situation is different, but yes you do have to be patient. You should ask your agent questions if you have any. That is what she is there for. You're just wanting to know the status.

    Best Wishes!
    www.ErikaCarrillo.com
    mommy2joeynabby

    Answer by mommy2joeynabby at 7:45 PM on May. 5, 2011

  • Lord...you're already doing much better than I did last summer. We put an offer on a short sale house that was accepted by the owners, and was only about $5000 less than what was owed on the loan (come to find out). We made the offer at the end of April, had our money tied up in escrow, and all of our loan stuff ready to go...the bank didn't get back for MONTHS. At the end of August, we finally ended up letting our offer expire. It was a super frustrating experience.

    I think that you have already made considerable process by getting them to accept your offer. Now I would think that 45 days would be a reasonable timeline to closing.

    Good luck mama!! I hope it all goes quickly and smoothly. Sounds like the bank is at least interacting with you, and I would take that as a good sign after my experience.
    Mom-2-3-Girlz

    Answer by Mom-2-3-Girlz at 9:39 PM on May. 5, 2011

  • "well we were waiting for the approval from the bank, which we were told would be easy"


     I don't know who told you that, but they couldn't have been more wrong. Short sales are anything but easy and quick, which you are now finding out. Whoever told you it would be easy, I would fire immediately. They obviously have no idea how short sales work.

    Candi1024

    Answer by Candi1024 at 9:54 AM on May. 6, 2011

  • Thanks Ladies, I wish I could say your answers helped but not really. The house is not in the expensive part of California , but a remote part. Those of you, who asked me to aske my realtor, if you read my blurp, would know that my realtor answers a question with an answer that is completley innacurate/false/untrue/wrong. I want to fire her, but I was informed that since she showed us the house,that is currently in escrow she has a legal right to the commission if the sale goes through. I am told that IF I fire her and use another realtor then I would have to pay her commission if she takes me to court. This is why it is important to ask difficult questions and get references before you hire a realtor. I agree with Miss Lisa we should of stuck to our original offer, but 171 is still a great deal considering the owners bought the house in 2005 for 448,000. @mom-2-3-girlz...I am sorry to hear you didn't get so far, but I am
    abbyg

    Comment by abbyg (original poster) at 1:16 PM on May. 6, 2011

  • pyschotic I send emails everyday to my agent I am relentless....and my loan officer is ready to go, we have all our ducks in order and we have agreed on the price with the bank but the only thing holding up this deal is the final purchase aggreement. The bank still hasn't produced it and this is why i asked the question if the bank and the buyers (us) have agreed to the price....how long is a reasonable amount of time for the bank to produce the final purchase agreement. I mean once we have it hopefully we will be done in 45 days, but I m not willing to wait 6 months for the bank to produce this paper...I am so frustrated and mad
    abbyg

    Comment by abbyg (original poster) at 1:19 PM on May. 6, 2011

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