6 months into buying process, couple questions..
We are 6+ months into the buying process of a Short Sale. We are dealing directly with the listing agent who in turns is dealing with a RE attorney to negotiate the Short Sale with the bank.
I have a couple questions (I've been reading this Forum almost every days trying to figure out how everything works).
First, is it ok/common practice to ask the listing agent for weekly updates ? (not hearing anything from her unless I insist)
I would like to know EXACTLY where in the process we are and what to expect from now on.
This is what I know of since last spoken with her:
-There are two liens with Chase on the propriety, 2nd lien holder is asking 10% instead of what was allowed to him so they are negotiating back and forth.
-This is a HAFA Short Sale but agent told me seller are ok if they loose eligibility to be able to complete the sale.
Investors: unknown to me.
What type of 2nd lien: unknown to me.
Also couple reasons why the process has been taken so long:
1.They lost their negotiator (I think she was talking about their RE attorney) so they had to restart from scratch in July.
2.They had to counter the BPO since the last BPO came higher than the previous ones.
Now my question are,what can I ask the agent regarding to the 2nd lien (or other things) that will help me better understand what to expect going forward and what are our chances of success?
I'm starting to get tired of that but this is our "dream home" and I don't want to let it go away (my wife gave up already :) )
Can I also directly get in contact with the RE attorney if I ask? Like I wrote above, the agent is really slow to respond and seems pretty clueless.
Thanks short sale superstars!
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Hi Gab. Sending out weekly updates should be standard of practice with short sales but unfortunately it's not. But I would certainly ask for them.
I would suggest checking your contract to make sure it is still valid and hasn't expired. If you do need to do an extension it may be a good time to add in "Seller or their agent will provide the buyer with updates at least every 10 days or the buyer can choose to cancel the contract with no penalty" or something similar. I am not an attorney so have your agent or your attorney review the language.
If the agent is unresponsive then you have the right to contact their broker direct.
It's my opinion that there is no excuse for not keeping all parties informed during the short sale process.
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Permalink Reply by Gab on
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Hi Bryant,thanks for your reply .
I'm dealing directly with the seller's agent. Contract is long expired (expires with the closing date that's on it correct? It shows 07-15-12) so we should ask for a new one/extension ?
They didnt ask for an earnest deposit or anything like that either. They told us they are going to do that when the bank approves the short sale.
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Permalink Reply by Jim Schneider on
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Gab,
I don't know where you are or what house your buying, but I'd take a long hard look at whether this is going to close or not. Here's why:
1. with two loans on the property, you already have a lot that can go wrong, and it already has, you have the second asking for more than the first will allow. I'd try to find out when this came up, and if there has been any headway since. If neither the 1st or 2nd mortgage has moved in their negotiating position, and it's been a while (maybe four weeks or more), major red flag.
2. You've got a bpo problem with at least one lender. (btw I'd find out which lender, it's probably the first, but check anyway). So I'm guessing that the first doesn't think your offer is high enough. I'd have your agent do their own market analysis for this property. If what you're willing to pay is way below market, it's probably not going to close.
3. If you're this far in, no news probably means that there's no good news to tell you, and quite possibly a lot of bad news they don't want to tell you. I'd also check the county sherrif or whomever does forclosure auctions in your area to make sure the property isn't about to be auctioned off.
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Thanks for your reply.I'm in Pensacola,FL.
1.Im trying to find that out
2.Original BPO was at 199k and I offered 180k. Then it expired and the new one (using different agent to do it) came back at 219k.
The RE agent I'm dealing with send all the comps,did an appraisal and told me Chase was listening.
3.That's my feeling.Going to check that out (Zillow now updates listings when there is notice of lis pendens,auction dates etc...)
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Go some good news today after calling the agent. She told me 1st lien holder agreed to give the 2nd (both with Chase) the 10% they were asking (4k out of 40k) so I'm relieved after reading all the stories about 2nd killing the deals.
She also told me the bank asked the seller to sign something about taxes implication with IRS (didn't understand what it was) and he agreed to do that so we should have a closing agreement pretty soon!
Look like our almost 7months ordeal is getting to close...crossing my fingers. This is our "dream" house that was very hard to find since we live in an older city, there aren't many nice 2006+ homes that goes for sale.
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