Short sale confusion

Hello all! My fiance and I put an offer on a short sale back in November 2011. We knew very little about short sales at the time and our Realtor is a full time architect who I now know also knew very little. Over the past few months my fiance has checked in regularly to see where we are in the process (one lien with BOA) and has received very little information from our Realtor. Recently our Realtor gave us choppy news about FHA and a possible appraisal and more documentation being needed from the seller. Doing my own research (because our Realtor seems clueless) I found a that BOA will not even look at our offer until the seller is qualified into the PFS program with Fha. I have a few questions: 1. Can we sidestep our Realtor is and ask the listing agent what's going on with the process? (the last time I tried to tell our Realtor about Fha short sales process, he replied 'cool') and 2. Has anyone else waited for months for the seller to be accepted into the PFS program? If that's the case then I know our offer hasn't even been touched by the bank. Any similar experience would you be greatly appreciated!
  • March 12 2012 - US
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Answers (4)

Profile picture for kapyarets

I represented both sides in short sale.

As a buyer's agent I recommend to my client a good attorney experienced in short sales.  I recommend using his/her service from the very beginning. IT IS ESSENTIAL IN SHOR SALE DEALS! 

Lack of information in many cases isn't a buyer's agent fault. A buyer's agent can contact jut a seller's agent and his/her broker owner, who may don't have enough information as well.

Banks don't "talk' to RE agents. Banks "give" them directions about what need to be done and in what time frame. Banks "talk" to attorneys.

The person who ahs information about what is going on is the seller's attorney (if the seller has a good one). Your agent can contact the seller's attorney but I would be surprised if he will be successful. Attorneys are better communicating with attorneys. 

This is what you need to do – hire a good attorney and he/she will keep you updated and push the deal to move forward. You will spend more money for attorney service than in regular deal but this is the price for cheaper price you pay for property you in short sale. 

Regarding you question about the offer: 

 Bank has been informed about your offer; otherwise bank would not initiate the approval process. 

Good luck!

  • March 12 2012
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Short sales are VERY time consuming.  We have represented both buyers and sellers in the short sale process, so I certainly understand your frustration.  Most short sales take approximately 6 months to complete (there are a few exceptions, e.g., HAFA, etc).  Some take much longer -- up to 2 years depending on the lender and short sale complexity.

I would not bypass your realtor.  Even though your realtor is not familiar with short sales, your realtor is still the one who should contact the seller's agent.  You should expect updates about every 2-3 weeks, depending on the short sale stage.  Have your realtor ask for these updates.  Also, don't trust short sale information you find on the web.  The information is generally very unreliable because each short sale is different and each lender treats the negotiation process differently.

I would also suggest you talk with your closing attorney.  They may have some tips to help you through your particular situation.
  • March 12 2012
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I would love to switch Realtors but can you legally fire your Realtor this far into the process?
  • March 12 2012
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Get a realtor like my wife with experience in short sales. They take patience and Knowledge of the process. But can be worth while.
  • March 12 2012
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