I am currently in a contract on a short sale which the seller/owner accepted about 90 days ago. The offer was submitted to the bank (Bank of America) 75 days ago. After the full appraisal (sellers loan is a 1st lien FHA) and a few steps through BOA we received a verbal counter offer 30 days ago. It was $15K above the list price and I verbally accepted but we still haven’t received a final approval. Is it typical for this final approval to take more than the 30 days I am already into it? Everything I am reading, and both the listing and selling agent told me, that once I got the counter it would go “quick”. In buyer land- quick isn’t a month! The negotiator has been coming back weekly and asking for docs to be signed and/or additional info from the seller. How long can this process take- it worries me that it could be indefinite. I am concerned because we are coming into the winter and this property has a pool. Are the sellers/current owners required to winterize the pool and maintain the property so the pipes don’t burst? They are living in the property still. Just worried that the “as is” addendum gives them the leeway to allow the property to go downhill. Any insight on this timeline or comments is appreciated.
~Frustrated buyer.
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Friday we got an update. The negotiator stated once she had everything in (more docs requested) she was going to be submitting for a "variance". From what the listing agent is telling us- the variance is for the 3% seller help we requested and it could take 1-2 weeks for that approval THEN they will submit for final approval which should take a few days. They also had us update our closing date to December 14th (the negotiator requested this). If the negotiator requested the settlement date change- is that a realistic mark or just something that they are throwing out there. Im a bit concerned becuase if it does take 2 weeks to get the variance approval that would leave me less than 30 days to get lender approval and settle??
The closing date is more than likely arbitrary at the moment.
Are there other Liens on the Property?
No other liens on the property. Just the FHA 1st. I confirmed this on the county deed registry and through the listing agent.
Why were you countered above list price? HUD PFS only requires an 88% of the list price within the first 30 days.
Great.... I was under the impression that it was 88% of the BPO not list?? The property was also on the market for 100 days before we submitted the contract. My guess is the higher price counter was becuase we are asking for 3% help.
HUD required full appraisals on FHA short sales. The appraisal amount is what the list price should be.
When I put in my offer they had come down from the original list by $30K. If I take 88% of the original list it is approx what they are netting with the counter price and help so that would make sense. I know they did another appraisal after I put in my offer. No one will tell me where that came in though.
Ditto on previous comments. Your wait time is not unreasonable for a short sale. I am surprised you weren't asked to sign an addendum for the new amount though. Be sure to bring up the pool to the seller's agent..
You should have been asked to execute a contract addendum changing the price. Most As Is contracts still require the owner to maintain the property in it's As Is condition at the time a contract is executed. Sounds like you are close to the end.