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Answers (7)
- namesbs
- Contributions:2
We have found out that the home is owned by the same bank that we would most likely be getting our load from too. It has had one loan taken out aginst the home for $15,000. We have also found out that there was an offer placed on it before ours that had been approved by the bank and the investor for the same dollar amount that we are offering. Thank you everyone for all of your help. This is all very informative.
- Cindy Schlee, "Cindy Schlee"
- Contributions:22
In my experience, less than 30% of short sales actually make it to the closing table. The issue seems to stem from the bank holding the mortgage. If you are concerned about the ethics of your loan officer and real estate agent sit down with them and share your concerns. Find out what bank is holding the seller's short sale and ask where it is in the redemption period. I always suggest that my buyers meet with at least 2 different lenders which provides them with mortgage knowledge. If I sense my buyers are getting less that ethical advice or treatment, I will contact the lender myself and seek clarification. Good luck.
Cindy Schlee
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Cindy Schlee
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- Helen Angell, "Helen Angell"
- Contributions:24
Short sales are about debt settlement between the seller/owner and the mortgage lien holders; remember that the bank that services the loan (collects the monthly mortgage payments) is not the same as the investor(s) on the loan. The process to determine whether or not there will be debt forgiveness for the seller is the part that takes long to process. The bank and investors are looking at a very large picture, they take into account their entire portfolio of loans, not just the particular seller's loan, and if there are multiple loans, each set of investors is doing the process all over again. Ask your agent how many loans are on the property so you have an idea of how many times this sale will be reviewed. It's best if the buyer's agent determines this prior to you making an offer on a short sale, that way you'll be prepared.
The other key to the short sale is seller hardship, if the hardship is not verifiable within the categories of: death, divorce, disability or displacement, it's more than probable the short sale will be denied. Keep in mind banks and investors don't consider loss of equity in the home or things like having a baby, as a true hardship. Listing agents should be able to tell the buyers agent the exact nature of the short sale hardship.
As others have said the buyer's agent is at the mercy of the listing agent, they are not authorized third parties to the short sale and can't call the bank for information, they have to wait for updates from the listing agent. Hang in there! It is a long wait, ask these questions and see if you have a better idea of what may be occurring with your offer approval. Good luck!
The other key to the short sale is seller hardship, if the hardship is not verifiable within the categories of: death, divorce, disability or displacement, it's more than probable the short sale will be denied. Keep in mind banks and investors don't consider loss of equity in the home or things like having a baby, as a true hardship. Listing agents should be able to tell the buyers agent the exact nature of the short sale hardship.
As others have said the buyer's agent is at the mercy of the listing agent, they are not authorized third parties to the short sale and can't call the bank for information, they have to wait for updates from the listing agent. Hang in there! It is a long wait, ask these questions and see if you have a better idea of what may be occurring with your offer approval. Good luck!
- David Hoggatt, "Roseville_Broker"
- Contributions:471
Ask your agent if he/she would be willing to send you copies of the email correspondence that they are having with the bank's negotiator.
When I work on short sales I copy all the messages I receive in regards to the transaction and paste them in a separate email that I send to my client.
This way the client can see that their file is being worked on and they can trust that the information I am giving them is accurate.
When I work on short sales I copy all the messages I receive in regards to the transaction and paste them in a separate email that I send to my client.
This way the client can see that their file is being worked on and they can trust that the information I am giving them is accurate.
- pbmc
- Contributions:10
I'm going through a SS now. Here are a few suggestions on my experience.
Nothing (nothing!) is final until you receive a 'Short Sale Approval Letter'. Don't pay attention to terms such as 'bank approved price' or other nice terminology. Approval is always 'next week'.
If this is your first home purchase, get ready for a bumpy ride. SS can take a few weeks, or in my case, one year.
Do not apply for your mortgage yet. You have your lending approval letter, that is all you need. After you get the SS approval letter, submit the formal loan application and get a move on!
Be prepared for the investors to counter. You can negotiate all you want with the SS negotiator, but it is up to the investors to approve the selling price. We had four agreements on price (each different) before the short sale was approved by the investors. When you say the offer was approved by the underwriter, do you mean the seller? Seller can approve any price, but the investors control the final $ amount.
Insure your agent has experience with short sales, they are a different animal. Ask for weekly updates - many times there will not be any, but you want your agent to know you are there.
Good luck!
Nothing (nothing!) is final until you receive a 'Short Sale Approval Letter'. Don't pay attention to terms such as 'bank approved price' or other nice terminology. Approval is always 'next week'.
If this is your first home purchase, get ready for a bumpy ride. SS can take a few weeks, or in my case, one year.
Do not apply for your mortgage yet. You have your lending approval letter, that is all you need. After you get the SS approval letter, submit the formal loan application and get a move on!
Be prepared for the investors to counter. You can negotiate all you want with the SS negotiator, but it is up to the investors to approve the selling price. We had four agreements on price (each different) before the short sale was approved by the investors. When you say the offer was approved by the underwriter, do you mean the seller? Seller can approve any price, but the investors control the final $ amount.
Insure your agent has experience with short sales, they are a different animal. Ask for weekly updates - many times there will not be any, but you want your agent to know you are there.
Good luck!
- Matt Hiatt, "Matt Hiatt"
- Contributions:112
You and your agent are at the mercy of the bank and also the other (listing) agent. Two questions I always ask before writing a short sale is: . Who is handling the short sale and how experienced are they? Short sales are hard enough and I want someone that knows what they are doing. The second question is how many loans are on it? If there is more than one, and with a different bank, your percentage of it going through goes way down. Also, as a buyer's agent, I ask for proof from the listing agent that my offer was submitted to the bank. I just had one where I know the broker did not submit it because he would never provide me proof.
- Thomas Hall, "Tennessee Loans"
- Contributions:381
The waiting on a short sale can be disconcerting. I am currently assisting a customer who is into the third month on a Bank of America-Short Sale of a home with a FHA/HUD insured mortgage. The first sixty day lock expired and it has since been relocked (at no cost to the customer-due to pricing being the same or better). I've had short sale's take a month and some take 3 months It really depends. Both your LO and the RE Agent are at the mercy of the parties on the other side of the transaction. Hopefully the agent has experience working with short sales and asking the right questions.
If your loan has been UW and approved after awhile some of the credit docs( i.e. paystubs, bank statements, credit report) may expire. As it gets closer to getting approved it is possible that the LO may ask for updated documents.
What questions should I ask loan and real estate agents during a short sale purchase with FHA loan?
I am a first time homebuyer with absolutely zero
experience or knowledge of the home buying process. I was referred to a loan
agent who also referred me to a real estate agent.
I have been working with both of them as much as possible to find a home. I
have been told that I am approved for a loan well above what I wanted to spend
on a mortgage. I have recently found a great home and have put an offer in.
I was told that the home was a short sale. Our offer was approved by the underwriter and we are waiting for the bank's approval.
My question is how can I tell if anything is actually working as well as it is sounding? I would love to believe that both of my agents are actually genuinely concerned with my well being and whether the situation as a whole seems legitimate. I hear horror stories about faux loan approvals that never go through, misleading agents, good faith down's that are taken because of dishonesty.
Are there any good questions I should be asking both of my agents to make sure that everything is OK? What is a normal amount of time to wait for the other bank to buy a short sale home? When should I be worried that something has gone wrong?
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