Does this short-sale process sound normal?

Question

My wife and I found a home 6 months ago that we liked, but was out of our price range. Recently, the listing price dropped $50k. So, we had our realtor make an offer for the listing price. Turns out, the new price is a short-sale, and our offer has to be approved by their bank. So, now we are waiting for the bank's decision. We have no communication with the bank, is this normal? I feel like we should be more proactive in talking to the bank about the situation. Any ideas?

Answer 1

Unfortunately, this is exactly the process. Two things to consider here, one, lenders are swamped witn both modification and short sale reviews, and depending upon how a particular bank has their procedures set up, they may not even begin reviewing the file until they have received all necessary documentation. Two, too many realtors say the bank takes too long, but it's a generalization that shows just how uneducated most realtors and people who answer questions in this forum are. While Bank of America may service a loan for example, one does not know who really owns the lien, it could be Bank of America, it could be a private investor, or a large investor such a Freddie or Fannie. This is the key to any short sale, who is the investor as that is the entity who's guidelines the offer has to meet. Once the bank receives the offer, a valuation or bpo needs to be completed, then the offer can generally be reviewed. If there is only one lien on the property, a short sale can be approved in as little as 30 days, especially if the agent is familiar with the lenders short sale process. If there is a 2nd lien on the property as well, this is where the negotiations can get dicey and take a long time. I'm hearing 2nd lien short sale reviews taking 30-60 days just to set up, let alone review. Your agent would need written authorization from the sellers to speak with their lender about the offer, and that most likely will not happen. If your in a short sale, you need to be patient, if your looking to close quickly and I'm assuming your making a cash offer, that is your only leverage in the sense that cash offers do not need the lender approval on the buyer side, you should be able to close quickly once the seller approves the short sale, but when you start talking about such low property values, the tougher short sales are to get through as generally the loss is greater

Answer 2

Totally normal. Banks take forever when it comes to short sale. They really should rename it to long sale, there's nothing short about it. Just be sure to keep your realtor on top of it. Make her call at least 2-3 times a week to the bank.Also just be patient.Good luck and congrats on the house.

Answer 3

You wouldn't be speaking with the bank. If the bank is dragging it's feet, the typical process is

You talk to your agent

Your agent talks to the bank's agent

The bank's agent talks to the bank



There are some proactive agents who will call the bank on the buyer's behalf, especially if the bank is being impossible.



Some banks are super quick on responding to offers, some take months. I've heard of people waiting 6 months to hear anything.

Answer 4

this is extremely commonplace to get a foreclosure letter for the duration of the quick sale technique. The REO Dept and the quick Sale branch at banks regularly do no longer refer to a minimum of one yet another. maximum banks will enable you to place off the foreclosure sale once you have a quick sale furnish. one element that could reason a difficulty for you. i spotted you pronounced a corporation exchange into determining to purchase your place. Banks do no longer conform to as many short revenues while an investor is determining to purchase the valuables to instruct. The fulfillment fee for my short revenues is ninety%+. ascertain you and your itemizing agent are calling the financial business enterprise to place off that foreclosure sale. you have have been given to make a number of calls to the financial business enterprise. the administrative shopper help branch is oftentimes the place you will % to call.

Answer 5

A short sale is a long involved process. You cannot deal with the bank - that is between the sellers and their lender, so do not expect any communication from them.

In SE Wisconsin where I sell real estate, the average short sale approval takes about 90 days.

Be patient - you are getting a bargain but it will not happen overnight.