Profile picture for user328386

Buying a property on short sale

We put an offer out for a property that is on Short sale for about two months ago. Recently the seller's bank did two consecutive BPOs ( 1 week apart) and just received an update from the sellers agent that the property is currently being filed under a foreclosure status. The seller had also indicated that the foreclosure status would be dismissed when the short sale closes long before the sheriff's sale date. It appears to be a complex situation and I was wondering if someone could shed some light on this scenario. Is this worth waiting and if yes, how long is the normal wait for getting this closed? What do we have to do for making sure we get a clean title ? Thank you

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2012 - Chicago
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (11)

"Make sure to get connected with a CDPE, a Certified Distress Property Expert for more details."

Yes, what you want is an agent who pays several hundred dollars for a course that teaches them nothing they wouldn't already know if they are active in today's market....

/sarcasm off
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 27 2012
sounds like chase?? By reading what your saying yes, I do think you should hang in there!! Your answer should be very soon, about a week or two... is my guess.  you need an attorney!! you should have one already, your lawyer will take care of title!!  Good luck!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 27 2012
fyi...properties will not be conveyed without clear title...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 26 2012
I completed successful short sale transactions for sellers and buyers long before ever getting certified...short sales have been around forever..when homeowners today are facing a hardship that qualifies them for a short sale vs getting foreclosed ..it is up to a great realtor and short sale specialist that is results oriented to make sure the short sale proceeds to closing.

I just closed a short sale for a buyer in 15 days and I just got a short sale approved for seller in 25 days that is closing.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 26 2012

Without a doubt the Short Sale / Foreclosure process is a stressful one, and as mentioned before in one of the other posts there are many stages.  Technically once you are in default the banks "foreclosure" process starts, which sometimes can be a lengthy one.  Having said that, Lenders and Banks are also starting to fine tune their process down, which means that what used to take approx 6 months to get through a while ago, now can take much much less.

Make sure to get connected with a CDPE, a Certified Distress Property Expert for more details.

Normally a title search is done very early in the process, so you should have the information on if you have a clear, clean title.  Keep an open line of communication with your agent, they should be able to answer any questions you might have


Best of Luck!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 26 2012
Hello,

Unfortunately sometimes the left hand doesn't know what the right hand is doing when it comes to the bank processing the short sale.  I've had this happen where we were ready to close and the auction took place.

If you really like the house, wait for it.  As long as you have an attorney involved you should get clean, clear & unclouded title.

Hope that helps.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 26 2012
What a tough situation to be in!  Short sales can be great deals, but only if you don't have a date that you have to move by because you just can't estimate how long it will take to get approval on a short sale.  In my market in California, two months is a brief period to be waiting for an approval.  One of our biggest problems here is that by the time the lienholders approve the short sales, the buyers have moved on (oftentimes, they've already closed and moved into their new home before getting the short sale approval to proceed with the esrow on the original property).  We have a few agents who specialize in listing short sales ... they will underprice the property to get multiple offers over list price, and then submit one for short sale approval and then when they get it, oftentimes they have to start down the list of backups because the first buyer has moved on.  My advice to you is to double-check your purchase offer--you are usually locked into that offer for a specific period of time (like 45 days) in order to allow time for a response from the lienholders on short sale approval.  If that time period has passed, technically you can start looking at other homes and if something better comes along, offer on it.  It's really just a matter of how great the short sale home is, what inventory is like in your market, your timeframe and balancing those considerations out.  Good Luck.  Feel free to msg. back for clarifications.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 25 2012
User328386, Forclsure status can mean many things. What you need to find out is how many payments the sellers has missed. At three payments is usually when the bank will file to start the forclosure, this will be status of Lis Pendis. Which means legal action pending. I can still take a long time to get to an actual forclosure/sheriffs sale. Two BPO's could have been fom two separate banks, are there two loans? Your agent should be able to find these answers for you. The forclosure status will not get dismissed, it may get postponed. It sounds like you may be in good shape here, find out what is going on, it's a good indication that your seller will get a response fom their bank soon since the BPO's have been done. Jim
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 25 2012
You will get a Title Insurance policy that your attorney can/will approve for good title. it sounds like you really like the home and that at least they are working on it. You should know fairly soon. Sometimes you can wait much longer and still get turned down however. Buyers will gamble on this and be flexible in exchange for the good deal they get.
Most of my buyers choose to not pursue short sales, for some of the reasons you have stated.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2012
Sounds somewhat common lol. Its up to you, you could wait longer and possibly get nothing out of it, or you can move on. It matter how much you like the property.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2012
I have been in that situation frequently representing sellers who are doing  short sales.  The Listing Agent can ask the bank to contact the attorney who is doing the foreclosure, to postpone it, the listing agent can also contact the attorney directly but they will tell her/him that they need to hear from the lender directly.  Foreclosures can be stopped that is for sure!!!!  It is up to you to ascertain whether it is worthwhile to continue waiting or to move on.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2012
 
Related Questions
Appraisaled SF is much smaller than the MLS listed SF
Profile picture for Nicholas Conteduca
Latest answer by Nicholas Conteduca
September 24 | 9 answers
looking for a buyer's agent for low end homepath properties
Profile picture for Newell Bentley
Latest answer by Newell Bentley
September 11 | 2 answers
what does zillow foreclosure estimate mean
Profile picture for wjbolton
Latest answer by wjbolton
September 11 | 10 answers
I called Exp, Equi, and Trans to have a dispute removed, was I wrong??
Profile picture for Matt Laricy
Latest answer by Matt Laricy
September 08 | 3 answers
how much is a real estate in downtown or around downtown chicago il ready for a parking garage busin
Profile picture for marko 225
Latest answer by marko 225
August 12 | 6 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 740 W Fulton St, Chicago, IL Home For Sale
    740 W Fulton St, Chicago, IL 60661

     For Sale: $325,000

    • Beds: 1
    • Sqft: 1050
    • Baths: 1.5
    • Lot: --
  2. 770 W Gladys Ave APT 305, Chicago, IL Home For Sale
    770 W Gladys Ave APT 305, Chicago, IL 60661

     For Sale: $249,900

    • Beds: 1
    • Sqft: 1000
    • Baths: 1.0
    • Lot: --
  3. 758 N Larrabee St APT 423, Chicago, IL Home For Sale
    758 N Larrabee St APT 423, Chicago, IL 60654

     For Sale: $439,000

    • Beds: 2
    • Sqft: --
    • Baths: 2.0
    • Lot: --
 
 
 
Sign in with Google