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What role does the Investors have and can they counter an offer that has been approved by the bank?

Posted by Johnny Fludd on September 9, 2010 at 7:15am in Short Sale Discussions
My offer was accepted by BOA and the file was sent to MI on 08/13/10. Each time my Realtor calls she gets a different agent and is told it is in the final approval state with the investor. If it has been approved by the bank then what role does the investor play? Do they have the authority to counter the offer that has already been approved by the bank? I have been waiting for a final approval for over 10 months.

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Replies

  • Cheryl Sommerville September 15, 2010 at 6:41am
    Bryant is on the mark. I too just closed a B of A this last month that took 1 year 1 month and 1 day. I have had others that took as little as 4 months from B of A also. It's a crap shoot depending a lot on the investor. My last one that was approved and just waiting on MI approval took three weeks from there. We have been lucky and on all of our short sales we have closed on them all. Persistance (sometimes not only daily but all day) and sometimes climbing up the ladder to a supervisor has helped. Knowing when and how to push is a must. As far as "the bank would be foolish not to take this"...you're probably right. Doesn't matter what we think. The banks have proven time and time again that they are complete idiots. How do you think we got into this mess to begin with.
  • JL Wdng September 11, 2010 at 1:29am
    I'm learning that it doesn't matter what we think...and that there's no way to tell what the banks are thinking. I've heard short sales being forced into foreclosures because the banks make more money with tax credits so it's a crapshoot. Good luck for sure

    diane turner said:
    this sounds horrible ...10 mos .... 13 mos .... i was told in the beginning that a short sale should take no more than 90 days !! we have already had a counter offer that appears to have been a great offer (only 8K below ```what the bank stated they wanted) - the comps are perfect to show this is right on target with the counter offer... I have begun looking at rentals to get into but now after reading these stories i am wondering if i am jumping the gun here. What happens if we move before the short sale is approved?? We have kept up the payments but once we move into a rental that will stop naturally ....does the short sale ever NOT happen - the docs all prove a hardship etc And We have a BUYER already - the bank would be foolish to let this slip by dont you think?
  • diane turner September 10, 2010 at 6:27pm
    this sounds horrible ...10 mos .... 13 mos .... i was told in the beginning that a short sale should take no more than 90 days !! we have already had a counter offer that appears to have been a great offer (only 8K below ```what the bank stated they wanted) - the comps are perfect to show this is right on target with the counter offer... I have begun looking at rentals to get into but now after reading these stories i am wondering if i am jumping the gun here. What happens if we move before the short sale is approved?? We have kept up the payments but once we move into a rental that will stop naturally ....does the short sale ever NOT happen - the docs all prove a hardship etc And We have a BUYER already - the bank would be foolish to let this slip by dont you think?
  • JL Wdng September 10, 2010 at 2:03am
    Stated a shortsale process in June (I'm the buyer)..pretty simple transaction...one lienholder, cash deal. I was just informed it was sent to the MI company for approval. Wondering how long I can expect this to take..obviously, there's no set timeframe but experience is a pretty good indicator.

    thanks
  • Bryant Tutas September 10, 2010 at 12:26am
    Johnny. The bank is really nothing more than a loan servicer. Think of them as a management company. They collect payments, take a small fee for doing so and then send the funds to the investor. The investor is almost always the decision maker. They own the money. The other decision maker is the mortgage insurance company. They are the ones that have to pay the investor back for a percentage of the loss. So really they have more say so than even the investor.

    The approval from BofA was through the equator system. This is NOT an approval. What it is is stating that the deal looks good to them and they are now ready to pass it along for investor and MI approval. the final approval will be in the form of a letter stating the Net to lender, acceptable closing costs and the expiration date of the approval (usually 30 days). Until this letter has been issued the terms can change.

    I just closed on a BofA deal last week that took 13 months!! Hang in there.
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