Replies to This Discussion

Permalink Reply by Anna Mackey SDHS on March 5, 2010 at 10:55am

From the time the receive an approval letter (ask to see the copy) it will be just like any other normal escrow. Your agent has got to be able to answer all of your questions, that is basic stuff. If they cannot, that is very concerning and you may need to go directly to their broker if necessary. Where did you find your agent?

Permalink Reply by Vicki on March 5, 2010 at 10:56am

My agent is a friend of mine. She has been VERY helpful but I feel as though I am bothering her with all of my questions.
Is is possible to push for a closing before April 30th?

Permalink Reply by Vicki on March 5, 2010 at 10:58am

How long is any other normal escrow?

Vicki said:

My agent is a friend of mine. She has been VERY helpful but I feel as though I am bothering her with all of my questions.
Is is possible to push for a closing before April 30th?

Permalink Reply by Anna Mackey SDHS on March 5, 2010 at 11:01am

It depends on the rules in your state. We are in California, so do not know about your state. Your agent is getting paid a commission for all your questions, so there is no reason to feel bad, that's their duty and obligation to you under agency law.

Permalink Reply by Eric M. Boyd on March 5, 2010 at 2:55pm

Vicki,

Welcome to ShortSaleSuperstars! Hopefully you'll get your questions answered. I'll offer up some info for you.

Here's the basic process I go through with my short sale listings:

1. List the property at a price comparable to recent sales in the area.
2. Make sure seller is getting their financial worksheet, past 2 years' tax forms, and hardship letter ready.
3. Once we receive an offer, if it's a reasonable price, the seller will accept the offer, making it a contract.
4. I send a copy of the fully executed contract to the buyer's agent.
5. Seller and I have about 5 days to get the follow documents sent to their lender(s). This is commonly known as the Short Sale Package. Financial docs, tax forms, last 2 paystubs, last 2 bank statements, hardship letter, purchase contract, short sale addendum to purchase contract, listing agreement package, preliminary HUD1 Settlement Statement, Letter of Authorization.
6. Once it's sent to the lender(s), the "waiting game" begins for most everyone else, while I keep a strict schedule of phone calls to the lender(s), making sure things are progressing.
7. I make sure the lender received the package, then call back in 10-14 business days, which is usually the timeline they want you to be checking in.
8. I call back to make sure there's been a negotiator assigned, and if so, I make sure to get as much contact info I can get for them, and make sure they have my contact info.
9. Usually, the negotiator will immediately order a BPO or Appraisal, as soon as they get the file. It can take 10-14 days for the BPO agent or appraiser to handle the request and get their report back to the lender.
10. Once they have it back, the timeline for review can take as little as 2 weeks, or as much as 30 days. But, I'm calling every week to verify.
11. Once the review is done, the negotiator can usually provide a verbal approval while they send off the approval letter for supervisor signature. Depending on the size of the loss, there may be more than 1 signature required on the sign off.
12. Once the approval letter comes back from the lender, then your financing process can continue.
13. All in all, the process shouldn't take more than 60-90 days, unless there are other circumstances that arise.

Regarding the 1st time homebuyer's credit, you need to be sure you have a CONTRACT with the seller. This means that the seller accepted your offer, with the contingencies of financing, short sale approval, home inspections, etc. If you haven't received a fully-signed contract from them, then that's not really good for you. If you have the contract, then you're OK if this goes beyond April 30th. I believe the requirement is that you have an executed contract prior to April 30, and close by June 30.

Permalink Reply by Vicki on March 6, 2010 at 2:58am

Dear Eric,

This was extremely helpful! Thank you so much! We are in the middle of #11 right now! I guess that means that we are well on our way! I am keeping my fingers crossed. I'm guessing that now that we are waiting for the "written approval" we will get a contract sent to our agent soon. Once the lawyer sees the contract we can set a closing date?
What an exciting time!
Again thank you for taking the time to write that for me.
I feel as though all I have been reading about short sales is negative responses!
You have given me hop!!
:)

Permalink Reply by Vicki on March 6, 2010 at 2:58am

HOPE*

Vicki said:

Dear Eric,

This was extremely helpful! Thank you so much! We are in the middle of #11 right now! I guess that means that we are well on our way! I am keeping my fingers crossed. I'm guessing that now that we are waiting for the "written approval" we will get a contract sent to our agent soon. Once the lawyer sees the contract we can set a closing date?
What an exciting time!
Again thank you for taking the time to write that for me.
I feel as though all I have been reading about short sales is negative responses!
You have given me hop!!
:)

Permalink Reply by Mary Wilcox on March 7, 2010 at 3:56am

Just wanted to tell you that you do not have to be CLOSED by April 30th...it's a fully executed contract by April 30th and closed by June 30th...

As for your other questions. EVERY bank is different and there really is no timeline to provide.
you were very brave to take on purchasing a short sale without representation. (It sounds like you are just letting a Listing Agent process this sale for you?)

Most likely, as a layman, you are at the mercy of the listing agent as to what they share and how well you're taken care of.
If you'd have had a Buyer's Agent, they could have kept you more comfortable in the process and many times can influence the list Agent to get things done. (whether it be quicker or in a different manner)

Good luck!

Permalink Reply by Vicki on March 7, 2010 at 9:45am

Hi Mary!
Thanks so much for the info! I did recently see that you needed to be in contract by April 30th. Hopefully I will be in good shape. I am hoping that we go into contract ASAP.
We just go the VERBAL okay on Wednesday, March 4. Do you know approx. how long it usually takes to go into contract after the verbal acceptance?

I should clarify. I have a VERY good agent that is helping us. BUT I have sooooo many questions I feel as though I am calling her non-stop! I figured if I posted on here I could get more answers without constantly calling her with my questions. She is very willing and able to help me, I just don't want to be a bother.

I also have a new question....if anyone sees this please let me know....

IS IT POSSIBLE FOR THE BANK TO CHANGE THOUGH THIS PROCESS?

Mary Wilcox said:

Just wanted to tell you that you do not have to be CLOSED by April 30th...it's a fully executed contract by April 30th and closed by June 30th...

As for your other questions. EVERY bank is different and there really is no timeline to provide.
you were very brave to take on purchasing a short sale without representation. (It sounds like you are just letting a Listing Agent process this sale for you?)

Most likely, as a layman, you are at the mercy of the listing agent as to what they share and how well you're taken care of.
If you'd have had a Buyer's Agent, they could have kept you more comfortable in the process and many times can influence the list Agent to get things done. (whether it be quicker or in a different manner)

Good luck!

Permalink Reply by Eric M. Boyd on March 8, 2010 at 9:24am

"IS IT POSSIBLE FOR THE BANK TO CHANGE THOUGH THIS PROCESS?"

It can happen, but I don't think it's common. Someone will usually get notified in advance. If the property goes into pre-foreclosure, the current lender may send it to a trustee to handle the sale. Hopefully the agents working your transaction are on top of it.