Hello,
I am currently a buyer waiting for a short sale approval from Bank of America (we are buying in Brooklyn, NY). Our offer was accepted by the seller in October 2013, since then it has just been a long waiting process with no real updates from the listing agent or seller's attorney. The listing agent represents myself and the seller but has no real experience with Short Sales so he is not the one in communication with BofA for the short sale process. Apparently, the seller's lawyer is the one running the process with the seller.
It has been impossible to get any real updates on where the file is in the process or what type of loan the seller has (who the investors are, etc.). The seller's lawyer is either unresponsive to my lawyers request for info or just responds with "no real update" or "all files have been submitted".
I just got a text from the listing agent saying that the seller just informed him that the "Short sale department submitted all papers and are now waiting for approval to close". What stage are we at now? Does this mean the file has been sent to the investors for final approval and if it is approved we will get an approval letter with a closing date? Is there a typical time frame on how long this approval takes? And if we get approved, what is the typical amount of time they give us to close? I know every situation is different but it is so frustrating to no know ANYTHING about what is happening. Any intell would be helpful.
FYI- We have not ordered an appraisal yet since we did not know if the short sale was going through or not.
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Sounds like they are just ordering the BPO now? If so, it looks like the bank just Now got all the doc.s from the seller they require. Or, there have already been price negotiations (have you received any type of counter offer?), and a real appraisal is being used to dispute the BPO, but this doesn't sound like the case. So, if they're just now ordering the BPO...probably 2-4 weeks before you get a counter, or a verbal okay.
If they do come back with a counter offer , what are my options to keep my offer as is? Or at that point, is the bank in total control and can walk from the deal?
When you get a counter, it's just like any other seller...you agree, counter, or walk. If you counter you will likely need the agents to do comparables, and do a value dispute. I can't say I have any faith in whoever is handling this if it has taken 5 mo.s before the BPO got ordered. Loans get sold, servicers change and such, but you should have heard about those as reasons for delays. In general, seller's attorneys are generally the slowest at getting short sales approved. I'm sure it has nothing to do though with the fact that most foreclosure defense attorneys here have their clients on the $500/mo plan. Also, don't be surprised if after approval, there suddenly appears this "short sale negotiation fee" that Amazingly the bank won't pay, "but somebody has to". Sorry, that was a bit of a rant, perhaps worst case scenario and I hope it doesn't happen to you, but I've seen it too many times.
Was just told by the agent that the proeprty appraised for $20K more than offer. The official appriasal is not in yet but if this is the case, what are the chances the bank still accepts our offer? We really don't want to pay any more for this house.
What is your offer and how much is NET'ing the 1st Mortgage?
It's hard to know what is transpiring from sure from the outside and it's always hard being a buyer on a short sale as it's common to be left in the dark. Waiting for approval to close could mean many things and it's very unclear. I would ask if that means if the file was submitted to the investor or upper management for final review ( approval review ). Once under approval review, it can take a few days up to a week or so to receive a response in regards to approval decision. Typically if there is no sale date on the file an approval will be issued for 30-45 days to close. If an approval is issued for 30 days, it's important to close as soon as possible. An extension to close can be requested, but it's never guaranteed to be approved.
Hope this helps a little.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
I just got an update from the agent stating the sellers bank has scheduled an appraisal for later this week. What typically happens after the appraisal is completed?