Short Sale Hell
I have been trying to buy a short sale in Flordia for ten months now. I have no more idea today where we are in this process than I did in March when I made the offer. My agent is a nice guy but all he ever tells me is there is no new information or it is moving as expected. The seller is also an agent and it appears she is handling more of the processes but I have no contact with her. I cannot imagine how this has taken this long and appears that it will continue to drag out even more. I believe there is a comapnay called Short Trac involved and her mortage is with Coldwell Banker, same place she works. Am I crazy thinking this is ridiculous or is this just to be expected. I probably am not supposed to be on this forum but I am desperate for some advise. Should I hire an attorney or am I just stuck in this sort sale purgatory.
Thank you,
Pam Mingo Sain
Replies to This Discussion
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Permalink Reply by Susan Highland on
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I feel your pain, and we are in it for only two weeks! I'd be long gone, and actually we are still previewing homes. You can walk anytime if you find something better. Good luck to you!
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Permalink Reply by Wayne Brooks on
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Susan, the listing agent allowed the owner to sign a stupid contract with you if "you can walk anytime if you find something better".
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I guess I'm confused, but until the bank approves your offer, and you sign the contract to purchase the home, all you have is an offer waiting for approval. Many people tire of the wait for approval in the short sale process, find something else, and walk.
This happened on the house which we currently are waiting for approval. A previous prospective buyer's offer got approval, BUT they had to wait so long, they found someplace else in the meantime. In California, this happens a lot! A realtor told me that she's purchased homes where she has been the 6th offer in line. I'm pretty happy they walked away from that house because it fits us to a tee!
Good luck and let us know how it goes!
Suzi
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Susan, I think you did miss something. You don't have "an offer waiting to be approved by the bank".
You have a Signed Contract with the Owner. That signed contract is what's submitted to the bank, not an unsigned "offer". That Contract is subject to bank approval, depending on seller qualification, price, etc.
You are committed by the terms of that contract.
Your "outs" to walk away would include:
Disapproval/counter offer by the bank
No approval within the stipulated time in the contrat(90-120 days)
A non- satisfactory inspection, IF your contract called for inspections after Lender Approval, as opposed to immediately after Owner acceptance. We require inspections up front, as opposed to after Lender Approval, just so "you can't walk any time you want".
While you may desire the "flexibility" to shop for other properties and walk away, we can't let you tie our Seller's property for 2-3 months, and let you just walk away because you found something else. Most of our sellers are in foreclosure, and this just pushes them closer to an auction.
We have to see it from all sides.
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Permalink Reply by Kathy Fuhriman on
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Utah short sale addendum does allow for the buyer or seller to cancel the contract anytime prior to third party approval. {"if at any time prior to Third Party Approval, or the Third Party Approval Deadline, whichever occurs first, the Buyer or Seller determines that their circumstances have changed and it is no longer in their best interest to pursue the sale/purchase of the Property, either Buyer or Seller may cancel the REPC by providing written notice to the other party."}
Perhaps the contract in Susan's state has a similar clause.
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Permalink Reply by Bryant Tutas on
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The first thing I would do is make sure the contract is current and still valid. During a 10 month period buyer and seller should have signed several extension. Contracts expire unless extended.
There has to be issues you are not aware of if it has been 10 months.
If the contract has expired then you are free to walk and look for another opportunity if you choose to. If you really want this particular property then the agents need to make you comfortable that the deal is going to happen or you are just wasting time.
If you need to extend the existing contract then place a clause in the extension requiring updates from the seller or their agent every 10 days or the contract becomes null and void. No excuse for agents to not keep you in the loop.
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I have been signing many extensions and waiting. BOP was supposed to have been done and all paperwork is supposed to have been recieved by the bank and still nothing solid. This is the perfect property for us so I do not want to walk even though in my heart I do not expect it to work out. I don't blame the agent. I don't think he really gets much info and I was warned this might take a while........ Lesson learned.
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If it's any comfort, and your agent has you on IMMEDIATE updates to the MLS, you just might find something you like equally or even better.
You have taught me some lessons, and no way am I willing to wait as long as you have.
Our seller/agent finally took her short sale off ACTIVE, and she says she has completed all the requirements of the lender, but the day she did that, another house came up on the MLS that fits us as well or maybe even better. We are waiting to preview it till next week and it is REO, so none of the short sale mess!
I've learned a lot from your post and from the answers given to you!
Good luck!
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Pam, trust me you are welcomed here. Yes, 10 months is crazy, ssems like someone doesn't care or it's never going to happen. At ten months, there should have been multiple obstacles/problems that had to be overcome, and you should have known some details. "Nothing new, and moving as expected" for 10 months, no way. As Bryant says, you don't even still have a valid purchase contract unless you've been constantly extending it. If you still want it, go into listing broker's office, and demand some answers. If they don't make sense, or they won't show some communications in writing, say good bye.
Short Trac is processing company out of Tampa ,associated with Sunbelt title, AND affilliated with Coldwell Banker. This is probably part of your problem, when these Brokerages hand off the "Negotiations" to an outside/affilliated "short sale processing" firm. Some are good, some are great, some are okay, some just plain suck. Your agent should be helping you analyze this.
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Thanks Wayne, My next extension is on the 16th and I am trying to decide what to do. It seems to me if it was going to work out, it would have by now. Still hate to walk but eventually you have to say Uncle. I am 57 and have had many life experiences and have never seen anything so screwed up.
Pam
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You must be a very patient person to wait 10 months. I am almost at the end of my 90 day contract and have heard nothing and I am very close to bailing, I've continued to look and am on the fence about making an offer on another property. Does your property have a foreclosure sale date set? I would check on that, I know the one I am waiting on is set to sell in early March. I don't plan on waiting around for that to happen.
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Permalink Reply by Tara Samney on
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I don't see how an attorney would help you. Your contract, if it is still valid, would have a contingency of short sale approval which you do not have. 10 months to not know anything iis entirely too long. I'm perplexed you are still waiting. Your agent may not be getting updates or tired of asking for them. Only the listing agent and the seller can discuss the short sale with the bank.
If it were me- I would have my agent start looking to see what else is out there....and hang onto this as a back-up.
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