I put an offer in on a house over three months ago that was approved for short sale and, from what I'm told is about to go into foreclosure. It has been over three months and I am still waiting for the sellers bank to approve the offer. Three months seems excessive to me to wait and not even have a purchase agreeent yet. Is this normal? I'm concerned there is something shady going on with the selling agent for this to be taking so long. Do I have any rights or am I just stuck waiting it out?
2007-06-23 04:04:13 · 4 answers · asked by kiwi1096 2 in Business & Finance ➔ Renting & Real Estate
They are taking over three months in CA. The banks are in no hurry.
2007-06-23 04:25:29 · answer #1 · answered by Landlord 7 · 0⤊ 0⤋
A short sale should be done in weeks, not months. The bank may be waiting to the last minute to see if something else happens. Or more likely they may not take your offer seriously.
If the house you are looking to buy is in reasonably good shape, and the bank can expect to get it's loan value out through the foreclosure process, it likely won't short sell.
Most lenders will short sell, but you have to work with them and show them how there are problems that make the house not worth the current loan - repairs and renovations needed, etc. If you do that, then they see they DON'T want to take it back, and will be interested in listening to alternative offers.
Baring that, if they get a short sale offer some banks will look at it, most banks will toss it in the garbage.
If it is three months, it is sitting on a desk under a pile of files, or in the garbage can. You need to contact the bank people in charge of the account and see what is up.
2007-06-23 11:16:53 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
since it is a short sale by definition the bank must signed off for the lower offer, now this can take some time, the bank has a board of directors they must justify to for taking the lower amount, since it will be a loss for the bank, they are into making money not loosing it
while the bank is reviewing the offer getting approval from different levels at any time until signed off by the head they can not accept the offer and decided they can get a better deal at auction or take a higher offer, but are under no obligation to take an offer lower then the note
2007-06-23 11:10:49 · answer #3 · answered by goz1111 7 · 0⤊ 0⤋
The seller's bank is in the driver's seat here. Has it occurred to you that the reason they are not approving your offer is that they are waiting for another potential offer for MORE money ?
The selling agent works for the seller, and is bound to work for the best interests of the seller, not you. You might consider it shady, but that's the way the law works.
2007-06-23 11:09:24 · answer #4 · answered by acermill 7 · 1⤊ 0⤋