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B of A short sale help!

My wife and I are currently in the a short sale purchase in the Lehigh Valley region of PA. Our offer was accepted by the sellers 5/25/13 and submitted to the bank 5/27/13. The house was listed at 286k and we offered 295k with 3% seller assist. Apparently the house was under contract for about a month before we saw it come back on the market because the buyers walked away. We were told that the process was actually moving very quickly for the previous buyers so we were confident it would be quick for us as well. Our initial close date was scheduled for 6/28/13 however the bank extended the close date until 7/10/13 around 6/18/13. Because we were told the process would be quicker than usual we got a home inspection done within the first week under contract and our mortgage approved/ interest rate locked. We have yet to hear anything from the bank regarding our offer being approved, because our rate is only locked until 7/28/13, what do you think the odds are that we will actually close by then?? Is this normal for a bank to set a close date before the offer is actually approved??

  • July 02 2013 - Lehigh Valley
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Answers (6)

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Thank you they are using Equator. Our bid is in the "offer analysis" stage. I actually just found out that the offer was sent to investors for approval. I read online that usually a "worksheet" is sent to the buyer sort of as a counter offer before the deal is sent to investors. We never got one. Has this ever happened in any of your experiences?
  • July 02 2013
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This is definitely not unusual. However, Bank of America has put things in place to streamline the process. Try to find out if they are using Equator. In Equator the entire process is tracked AND there is a constant dialogue that is occuring with the agents and the Bank of America negotiator. They may be requesting additional information from the seller(s). They may be waiting for a new BPO/value on the property. There are many things that could be slowing the process down a bit, but it doesn't mean that there is a red flag being raised. Encourage your family realtor to contact Bank of America in front of you so you can feel more comfortable about the status. You have a lot on the line and time is ticking! I hope that helps! And, best of luck to you.
  • July 02 2013
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PS

We made the mistake of picking a realtor who never did a short sale (family friend) and she is essentially worthless in this process. Had we have know we would end up putting an offer in on a short sale we would not have chose her.  We have been contacting the listing agent for any information. In the beginning the listing agent made it clear that she had done short sales in the past and the process would be very transparent. Since then she has been very vague in any questions we ask and just seems annoyed that we are asking her questions.
  • July 02 2013
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Thanks. Its a conventional loan with 15% down. We are first time home buyers and have been staying with a relative to save money so we don't mind waiting so long as the rates stop going up! I just found it odd that the bank only extended the close date 12 days. Do they do this to string people along??

  • July 02 2013
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Contact your local Realtor and go over your questions. 
  • July 02 2013
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Hi, I have a lot of experience with Bank of America short sales and can assure you this wait is not unusual.  In fact, I would be surprised if you had already gotten approval. Negotiators with the short sale lender often say the next contract will be faster but this isn't always the case.  So many things can happen to influence that with BOA and the investor.

Depending upon how your purchase agreement/short sale addendum reads there may have been a clause in it that you don't need to secure financing until you get approval from all lienholders- including the start of your inspection window.

Getting an inspection done up front is a smart move- even if it cost you if it falls through.  It can cause tremendous heartache for buyers to wait months for approval only to find out that their offer didn't account for needed repairs or that they can not financing with the condition the home is in.

Getting the loan going was good...the lender may have set a closing date to keep it on track but odd they ran that far with it without have an approval letter. Most likely your purchase agreement contract has language in it that 3rd party short sale lender is a contingency.

I don't know what type of loan you have but if it is conventional expect 2-3 weeks.  It could happen if you got approval soon.

Closing dates are really just tentative with short sales unless a buyer absolutely has to get in a home by a specific date- in which case the short sale lender doesn't care and you have the option to walk if you don't have an approval.

Good luck! Short sales take patience. It can be trying, I know.

  • July 02 2013
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