An abrupt Decline after waiting 70 Days
What are some of the common reasons that a Seller would be denied the ability to perform a Short Sale. My Wife and I, had been waiting for 70 Days and just got this response on Friday. I was less than excited about the news and called the Bank. I found a young lady who was kind enough to review the file. She let me know that we were not the issue with the abrupt decline. The issue was on the sellers side. Shouldn't the sellers know whether their situation qualifies or not.
Replies to This Discussion
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Permalink Reply by Karen Hurst on
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Unfortunately, not everyone understands the whole Short Sale process. There are many reasons, one of which they may not have qualified in the first place. Many people think that just because their home is worth less than their mortgage, they would automatically qualify. There are many factors, ie ability to pay, payment history (past due, etc), situational factors, ie one must prove a Hardship. Or on another note, it's possible that there ended up being a loan modification. Or the loan has recently been sold and the Sellers may not be aware of this yet.
Is there a listing Realtor involved? If so, I would question him/her about whether or not these things were addressed before this home went on the market.
Good luck in your home search, and be very careful next time to ask these questions before you put in your offer. -
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Permalink Reply by Esther M. Camarotte on
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A common reason is financial. It could be the seller is financially ok and is not willing to adhere to bank requirements. Just because the house is underwater doesn't always mean the seller is underwater. Banks are not required to do short sales only when it is in their best interest.
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Permalink Reply by Joseph D. C. on
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The couple is getting divorced, the husband has moved out of the house. They have a law firm represnting them, and one would think that they would've advised them if they would qualify. I feel that marketing a home as a short sale is irresponsible and misleading. My wife and I, waited 70 days to figure out these folks don't have their ducks in a row.
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Unfortunately, if their realtor is not an experienced short sale agent they don't know what to do. Attorneys are also new in this process. Not until the last 18 months or so has this become common place. This short sale practice has been around a long time but seldom done. There are many many factors that the seller has to do to make the bank happy.
I will say as a buyer's agent I always advise my buyers that there is a very good chance that the deal will not go through and if they are wanting to get their tax credit they need to weigh the pros and cons. I am sorry for you and your wife's disappointment. -
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Ah!!! Not every divorce lawyer is familiar with short sales. I just had a similar situation on the Listing side. The sellers did not even realize they would be a possible short sale. Their lawyers did not adivse them. You are entitled to feel upset about this!! You are right, it is irresponsible and misleading and downright time wasting of all involved. However, there isn't too much, if anything, that can be done. Your buyers rep should have done some investigating before you submitted your offer. And if you didn't have one, then you might want to consider getting one that will do their research and keep this from happening again.
Joseph D. C. said:The couple is getting divorced, the husband has moved out of the house. They have a law firm represnting them, and one would think that they would've advised them if they would qualify. I feel that marketing a home as a short sale is irresponsible and misleading. My wife and I, waited 70 days to figure out these folks don't have their ducks in a row. -
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The Law Firm is a title company. Our real estate agent has been very helpful throughout the process, the Seller's agent is less familiar with Short Sales and has shown that all the way through the process.
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Permalink Reply by Terry L. Osburn on
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I understand your frustration. It could have been the seller fell under the new guidelines the government imposed and became eligible for a loan modification in order to keep their home.
The seller could have been seeking a deed in lieu unknown to their listing agent that requires the home to be on the market for about 3 months.
There is a myriad of reasons as stated below.
The bottom line there is NO guarantees short sale will be approved. It is a very complicated process and most of the banks are servicers, not originators of the loans. Depending on the investor percentage of involvement will depend if the Servicer can make all of the final decisions or not.....
Did the house go to foreclosure? Is it back on the market? Did they remove completely from the MLS? -
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I appreciate your feedback. The sellers are trying to unload the house its been on the market for over a year and their getting divorced. The house is not in Foreclosure, but it has not been taken off MLS. We'll see how this whole thing plays out.
Not very hopeful,
Joe -
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At this point I would say move on unfortunately. You still have until 4/30/2010 to go under contract in order to qualify for the tax credit.
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Not going down that easy. Working to get the file re-opened with an execitive at BOA. If you call high enough its my belief folks will listen. I'm going out with a bang in this situation.
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Not going down that easy. Working to get the file re-opened with an execitive at BOA. If you call high enough its my belief folks will listen. I'm going out with a bang in this situation.
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ok- so BOA came back to the seller for another round of financials becuase they told him he made enough to cover the Mortgage. (Even though the poor guy is getting divorced) To top it off the sellers have been paying the Mortgage every month. Don't they have to stop paying in order to get the Short sale approved??
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