Feb
15
Has anyone purchase a short sell home or know the process of buying one?
By
My fiancé and I put an offer on a short sell home and are waiting for the bank to accept our offer. I was wondering what are the step does the bank go through before they accepted our offer? So far I know that the bank hired a negotiator and also a title company. Is that a good signed that they accepted our offer?
The house went pending subject to Lender approval and we are currently the only buyer that put in an offer.
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3 Comments
February 17th, 2010 at 5:40 pm
who knows as banks may be looking at several offers on this home. It is a very slow process to get a short sale as some take several months to complete
I am a mortgage banker in TN & KY
February 18th, 2010 at 1:58 pm
The bank receives your offer. And possibly other offers.
The bank tries to determine the fair market value of the property. It doesn’t want to approve a sale at substantially below fair market value. That’s why the information provided to the bank from the seller/seller’s agent about the condition of the property is so important.
The the bank either approves or disapproves the sales contract between you (the buyer) and the seller.
Short sales are unpredictable, and can take a long, long time. I’ve heard of several that’ve taken 8-9 months. Others can happen in a matter of weeks.
Best thing to do is for your agent to be in regular contact with the listing agent to make sure that the listing agent stays on top of the situation and is in regular contact with the bank. There’s no way to speed the process up, but a poor listing agent can really slow the process down.
Hope that helps.
February 21st, 2010 at 4:02 am
No one knows the answer to this. The process varies by lender and hiring an asset management negotiator and title company is, in most cases, going to happen at some stage of the transaction.
They don’t call these short sales because they are quick, short sales can go on for months at a time. I have talked to loss mitigation people and asset managers that have 2,000 properties on their case load.
Everyone involved in these transactions wants to know what is going on, but these short sales are also a test of patience.