We were told we would get an answer back today on a short sale
"We were told we would get a response today from the bank on a short sale..."
You put in an offer for a house sold as a short sale.
You were told you would get an answer back by today.
But you haven't heard anything back, right?
If you are a buyer looking to buy a Short Sale, one of the things you have probably heard is that it could take a while. A long while. Weeks. Months. Forever, it seems.
Depending on many variables (lender, listing agent, etc.), getting the lender's approval for the short sale can take anywhere from a few days to months.
Sometimes, the short sale needs to be approved. Sometimes, the short sale gets approved for more than the listing price. Yes, it happens too.
At Kenna Real Estate, We understand the anxiety and frustration of waiting for the answer. As soon as we hear something, we will let you know. We go by what the lender's representative tells us. Sometimes, it is like pulling teeth. Often, we don't get the answer the day we were supposed to. It's frequently anybody's guess when the approval gets done.
As a listing agent on a short sale, we are literally on the phone, emailing, faxing (anything) with the lenders daily, often several times a day. Yet, we may still need an accurate answer.
As buyer agents, we rely on the listing agent to provide the information/answer. We are not authorized to talk to the lender directly. We can only call the listing agent so many times a day. The agents can get testy if we call them every 10 minutes. We tell buyers, agents, and sellers who contact us, "As soon as we hear something, you will know."
(from a listing agent perspective)
An offer for $325,000 is submitted to the lender for their approval. After SIX months (it's a long story), the lender comes back with a counter/approval. They want a price of $10,000 higher than the offer and permit $335,000. The buyer says no thank you and walks away. There is another offer, but the approval is only suitable for that contract/buyer. After talking to a supervisor at the bank, they say that we can submit the other offer, which is for $335,000, and we SHOULD have a quick approval or re-approval 24-48 hrs. Meanwhile, TWO MONTHS later. We get an approval to close. The buyer is hanging on, and finally, after NINE months of short sale/long sale, the house gets sold.
(from a buyer agent perspective)
The buyer submits an offer for the total asking price. We are constantly communicating with the listing agent, who the bank told us will have an answer in TWO WEEKS. The foreclosure sale date is already set, as well. Two weeks go by—no word from the bank. The buyer keeps calling us every 10 minutes. We keep calling the listing agent. Nothing to report. Another week goes by, and now the bank says they will have an answer in ONE more week. (four weeks and counting). The buyer keeps calling us. We keep calling the listing agent. The listing agent keeps on calling the bank. Finally, FIVE weeks later (two weeks before the foreclosure sale), the bank comes back with approval. We have to close in two weeks. The buyer can't complete it in two weeks; it needs a month. The bank is not budging on the closing date. The buyer has to find another house after five weeks of waiting.
The point is that even if somebody gives you a specific date when you should have an answer - it may not happen! This is why we emphasize (a lot) that we MAY get an explanation in around _______ weeks/days etc. It's rarely 100% accurate. We do the best we can. Some banks are much easier to work with than others and can have approval reasonably quickly. The fastest support we have run across was from a smaller local bank - 5 days, followed by permission from the 2nd mortgage/lien holder in another couple of days. The buyers could close in 40 days from the day they put in the offer.
The second point is, welcome to the world of short sales. Things happen. Be prepared to wait. Let's look at alternatives if you have time to get started. If you are interested in putting in an offer on a short sale, first, we'll call the listing agent to see where things are. That call is often vital to know how close or far getting the approval might be
Disclaimer: Kenna Real Estate Blog does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Copyright 2012-2023 .© Kenna Real Estate. Brian Burke. Highlands Ranch Highlands Ranch Short Sale Real Estate Agents. All Rights Reserved. "We were told we would get an answer for a short sale today!"