Saga of a Shortsale

I am a little bit frustrated. We put our offer in on December 29, 2008 and have yet to hear if it has been accepted.  I know that this is the way it goes with short sales. I know it is made even more complicated by the fact that the sellers had both a 1st and 2nd Trust on the property. Who knows how many total investors were involved in those two mortgages?  Who knows how long the approval process will take?

I also know that  I have first time buyers (who went in to this with their eyes wide open) who have had to put their lives on hold while we wait to find out if their offer is accepted.  They really want this house.  They thought the waiting would be easier than it has turned out to be. We were quick to get a yes from the current owners and then the contract was passed on to the 'negotiator' who would be dealing with the bank. We have considered going out to look at other things, but the longer this goes on, the less attractive everything else becomes to them.

I keep checking and, so far, cannot find any evidence that the house has moved forward in foreclosure proceedings.

And no, just because things are slow in the residential real estate market, it does not mean that the banks will be quick to respond to a solid offer with well-qualified purchasers. They still have to dot their 'i's and cross their 't's.  The process --such as it is--remains the same for whomever submits a contract (the process differs, incidentally, from bank to bank).

All we can do is wait. I am sorry that I keep pestering the listing agent, who I know does not have any information, but when you cannot do anything, you still must do something!

Thanks for letting me vent...there is not much else for me to do right now.

 

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Comment balloon 9 commentsHolly Weatherwax • January 30 2009 09:17AM

Comments

We had a similar situation in our office and the agent wrote a letter to the President of the bank saying the powers that be to negociate the short sale are dragging their feet. She did get a letter back from the bank president within 2 weeks saying that he personally looked into it and that the offer is officially accepted and it was not handled correctly. Try that. 

Posted by Marty Kampmeier (Prudential First Realty) over 9 years ago

I hope the sales go through quickly for you. I know the frustration of this market is having an impact on all involved with the process.

Posted by Darrell Walters (W. Darrell Walters) over 9 years ago

Hi Holly - This frustrations appears to be a common thread for short sales.  Personally, I feel it's a major flaw in the system with no relief in sight.  I have known buyers to withdraw their offers because of the length of time it takes a bank to get back to them.  I have also known some who found another home, made an offer, and had it accepted before a bank got back on their short sale offer.  Of course they withdrew their short sale offer and moved forward on the other home. 

Posted by Jon Wnoroski, Summit County Realtor (America's 1st Choice RH Realty Co., Inc.) over 9 years ago

Hi Holly,

You're not alone. I always ask the listing agent if the bank is working with a BPO or an Certified Appraisal, and if all the financial information is in and has the case been assigned to a Loss Specialist yet. Even if all the answers are yes to those questions, the process is still long.

I'm working several right now. However my most frustrating is one bank loan listing. Contract was written and submitted on Dec 16th, 2008. All above items are completed. The case has now been reassigned to another Loss Specialist since last week. Our of pure frustration I Goggled the bank who holds the mortgage.

They have help wanted Ads on several Internet Job Sites seeking High School graduates for Loss Mitigation Processors and for Loss  Specialist a 4 year Bachelor Degree or similar work experience. Nothing is mentioned about previous Loan Officer or Real Estate experience. Imagine the learning curve on dealing with Hud-1's!

To say the least it's maddening!!!

Posted by Peggy James, Woodbridge Virginia Area Real Estate Specialist (EXIT Realty Associates) over 9 years ago

Holly, Missy Caulk just wrote a great post on her frustrations with a short sale.  Trust me, what you are experiencing seems to be the case everywhere.  Good Luck!

Posted by Diane Aurit, Lake Norman Real Estate (LKN Realty, LLC) over 9 years ago

Hi Holly...I am very interested in this process.  I have a little experience in loan mitigation, etc.  The only think that I suggest is that YOU call the bank, or have womeone you know call to get answers.  This can take a while to get to the person you need to speak to, but once you get them you can finally begin to get your mission accomplished. 

Posted by Jennifer Schlesser over 9 years ago

I appreciate all of your comments. 

Jennifer, I am not sure how I would even begin to find out who I need to talk to(not a small bank).  Any ideas?

Posted by Holly Weatherwax, A Great Real Estate Experience ( Associate Broker, Momentum Realty) over 9 years ago

Holly - I have two words for you:  dig in.

It's only been 6 weeks, you could easily have another 6.  2nd trust lenders tend to get responses back in 30 days, but 1st trusts are easily taking 3 months.  In fact, when I talk to an agent with a SS listing, I ask where they are in the process because if they haven't started, we won't be closing for 4 months (at least).

I think back to the first SS I did (Fall 2004), I was talking to loss mitigation and had a response within 1 week of submission.  How things have changed!

 

 

Posted by Tchaka Owen (Galleria International Realty) over 9 years ago

Tchaka,  I fear you are right.  The bank called for an appraisal last Friday.  That was the first thing they have done since receiving the contract.  It is not an easy process...and not for anyone who is in a hurry to move to the next phase of their lives!!!!!

Posted by Holly Weatherwax, A Great Real Estate Experience ( Associate Broker, Momentum Realty) over 9 years ago

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