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Short sale process where Bank of America holds the mortgage

Saw property mid September, put in all cash offer in beginning of October which was agreed to buyer.
This past week after mentioning we want to close by end of year (which our realtor told us initially the seller wanted to do), our agent told us the inspector was coming and she was there with him/her. Now we are being told that the investors have to approve the offer. We are not sure what is going on in the short sale process at this point and are eager to get an answer from BOA so we can proceed with either buying the new property or not buying at this time.
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December 18 2013 - US
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Answers (4)

There seems to be a bit of confusion here, you should discuss it with your buyer agent.  I do no think inspectors visited the property, but rather an appraiser.  The properties are inspected by the buyer's home inspection company not the bank.  Once the bank has all the necessary information it is then sumitted to the investors for their approval.  I would say you are getting closer to the end.  I am sure you were told that short sales take a while, so after waiting this long, I would hang in there a bit longer, this is the last bit of the process before you receive a written approval by BOA.
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December 19 2013
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Two clarifications: The end of the year deadline was told to us as the seller's deadline as they will move out. we didnt hear anything from our side until we mentioned it on our end. the inspection that was done appears to be part of the bpo process. our inspector wont come in until the offer is accepted by us. (weve checked his availabilty though). we will follow up on liens.
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December 19 2013
Hi User7060194,

There are 2 steps to successfully completeting a short sale. The seller first has to apply, and be approved to participate. This process can take 45 - 90 days. NEXT, the lender has to approve the buyer's offer.  Offer approval can take 30-90 days, on average. It varies with the type of short sale, and the amount of experience the listing agent has in working with short sales.

After the buyer is approved to participate, the lender should conduct an appraisal or BPO (broker's price opinion) to determine the fair market value and their listing price. It is true that the seller must accept your offer, but the lender must approve it. You may still have price negotiations ahead of you.

It is not our recommendation for the buyer to complete an inspection, appraisal, or spend 1 red cent on the subject property before the offer is accepted by the lender. Your 'option period' (inspection period) should start after you receive written approval from the lender that your offer has been accepted.

It would also be wise for your agent to call the title company and ask if there are any secondary liens, or judgement that will need to be cleared. Then ask the listing agent if the seller has a plan to satisfy any issues present.

Awareness on these matters should help you get a better understanding of where you are in the timeline and short sale process.

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December 19 2013
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"we are being told that the investors have to approve the offer".   Yes, this is normal with short sales.  If you have a deadline, don't bother with short sales.  
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December 18 2013
 
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