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Bank has accepted offer but is dragging its feet on sending the purchase agreement.

This is a short sale. Everyone is in agreement.The bank say they're in agreement also but have not sent our purchase agreement yet. We had to cancel our inspection today because they are dragging there feet. Has anyone had this happen to them before and if so do you have any advice.

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May 31 2012 - US
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Answers (5)

Ron is correct. You won't be getting any purchase agreement from the bank, only the payoff acceptance letter. The purchase agreement is between you (the buyer) and the seller (owner). The bank (lender) has to agree to accept a payoff that is less than the balance due on the loan.

How do i know if they have signed or if the contract says anything about the inspection period?? I haven't seen the contract at all.

You as a buyer should present an offer to the seller and if the seller agrees to the terms,than he/she signs it and the offer becomes a contract. This contract should be contingent upon the bank/lender approving short sale. Banks do not sign the contract in short sale process, they only issue approval or denial letters. The contract will specify the inspection period.
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June 01 2012
the contract would be the offer that you submitted.
typically it goes like this,
you made an offer (through the listing agent or one of your own) and it was presented to the seller, the seller agrees to the terms but it is a short sale so the offer is contingent upon bank acceptance of the purchase price and terms.  So the seller and their agent submit the offer to the bank along with other documents the bank will want from the seller for their approval.  When the bank signs it, the documents are returned to the seller and the buyer and it is then a contract.   
 That offer typically includes all the details about the buyer's rights to inspect, handling of earnest money, processes for either side to back out, when closing is and what the price is , what it must appraise for and so on.
once it is signed by all parties then it becomes a contract.   That document would define when you can do inspections and what your rights are. 
You can edit anything in it when making an offer by marking out or writing in changes or attaching a document with exceptions/changes and all parties must agree on those items.  If the offer has been submitted and the bank says they are in agreement then someone should be working to secure their signatures.   If the document does not have any language about inspection period then it's a good time to send an additional document about that and get it signed as an attachment.

the buyer is typically the person that starts the process by providing a written offer, this is the document that becomes the contract, it should have been reviewed with you when you signed it, if there are no documents, then you don't really have an agreement with anybody- the agent or lawyer that helped you prepare your offer is who should be able to give you more specific help. If no such activity occured, then contact the your agent or the listing agent or a lawyer
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May 31 2012
You will not get a purchase agreement from the bank. The purchase agreement is between you and the seller. All the bank is going to do is approve the short payoff amount they will receive.

Why hasn't your agent advised you of this? Don't hold your breath waiting for the bank to send anything except their payoff acceptance letter and approval of the estimated HUD-1 statement saying where all the funds are to be disbursed.

If you don't have an agent, I would recommend that you contact a real estate attorney well versed in short sales.

I hope this helps.
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May 31 2012
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How do i know if they have signed or if the contract says anything about the inspection period?? I haven't seen the contract at all.
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May 31 2012
this is more the norm than the exception because banks simply didn't have the staff available to handle the load of short sells, so typically it's a slow process.   One thing you can do is write in the offer that your inspection period begins when you have received documents from the lender.  I have gone so far as to say that the inspection period begins when the seller confirms that utilities are on and inspections can be performed.  Of course utilities may not be an issue in a short sell.
the point is..your contract likely already says the inspection period begins after last signature is obtained.  if not...put together an addedum that says this, and do your inspections then.

short sales are slow.  no matter who tells you how fast they did one, they are getting better but prepare to wait months not weeks.
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May 31 2012
 
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