Has anyone had experience with a short-sale?

posted 3 years ago in Home
Post # 4
Member
2524 posts
Sugar bee
  • Wedding: April 2014 - Italian Villa

@Mick26:  I used to work for a mortgage broker, and some of our clients (buyers) went through short sales. The thing is, it can definitely take a very long time to hear from the lender, especially if it is a very large institution such as Wells Fargo, Bank of America, etc. (BoA is the worst). 

 

I totally understand your frustration- just hang in there! This could be your home! 

 

If I were you, I would talk to your landlord about the situation and see if you can extend your lease one month at a time 2 months out. So, if your lease is up January 31, You would have to let them know November 31st whether you would need another month tacked on to your lease.. This could work well for you if your landlord agrees, because they would have 60 days notice before your move-out, and even if your offer gets accepted the day after you extend, many loans take 30-60 days to close, which means you have somewhere to live while all of the details are being worked out and there would be relatively minimal overlap (It is impossible to get the timing just right.).

 

Good luck!

ETA: The most recent short sale I worked on, it took 6 months to hear from the lender.

Post # 5
Member
3128 posts
Sugar bee
  • Wedding: December 2017

We purchased our house as a short sale. Ours was a unique situation because the owner actually had 2 mortgages on the house, so we had to get approval from 2 banks…I think we made the offer in September and closed at the end of December.

The most stressful part of us was actually Bank of America, where we got our mortgage. They were completely unresponsive to any of our attempts to contact them for any reason. The day before we were scheduled to close, they decided they needed a bunch of paperwork and of course there was no way to get it all in time. We ended up having to push the closing date back at least once, it might have been twice, and the only reason it went through when it finally did is we were harrassing them, as was our realator and our title agent (my sister). 

My advice is just to be patient and avoid Bank of America at all costs 🙂

Post # 7
Member
3389 posts
Sugar bee
  • Wedding: June 2013

@Mick26: Do you know how many mortgages they have on the home? Because all lien holders have to approve the short sale price and that delays the process. 

Post # 10
Member
3389 posts
Sugar bee
  • Wedding: June 2013

@Mick26:  Only the property in question matters. what may happen is the bank(s) may renegotiate with you. What are the comparables for that area? has your dad checked? and how do they compare to your offer Price? 

Post # 11
Member
1102 posts
Bumble bee
  • Wedding: May 2013

@Mick26:  Hi! I don’t have experience except to say that we are in the exact same situation as you, so I’m curious as to how our timelines will collide. We put an offer on a house we loved on Sunday and found out yesterday our offer was accepted! My mother is a real estate agent but we gave our sale over to the seller’s agent in hopes she would push our offer to the forefront (the seller hired a lawyer to deal with the bank and the lawyer is the one who will ultimately decides which offer gets sent to the bank) since there were multiple offers!

Also, a builder offered the exact same offer as us, sight unseen except that he waived the inspection contingency so our realtor suggested we do the same. We ended up having my FIL (who is an electrician) do the inspection himself yesterday so we felt more confident in waiving the contingency. Hopefully, the contracts will be signed today and sent off to the bank for approval so the waiting game can begin!

Post # 14
Member
2524 posts
Sugar bee
  • Wedding: April 2014 - Italian Villa

@Mick26:  multiple liens does complicate things,  since both banks have to agree,  but the good news is a federal law was passed last year stating that second and third lenders can only get up to a certain percentage of the sale price (I think it was 20%). This was meant to speed up the short sale process,  since banks spend less time arguing with each other about who gets what,  and in theory you’ll hear back sooner.

Post # 15
Member
1102 posts
Bumble bee
  • Wedding: May 2013

@Mick26:  Yes, definitely! As of right now we are working on getting the contracts signed (we thought we had a lawyer we could use but he doesn’t specialize in short sales), so that put a little delay on things (contracts were supposed to be sent out today)…we are only dealing with one bank/lender so I think that is good..the name is Green Tree though and I’ve read some pretty bad things about them online! We offered $25K below asking but are putting up all cash. I hope given that we are cash buyers things will move faster but I’m not sure that matters so much in this situation! The other thing is that IF it takes 6 months we will have to move in winter and this house needs a ton of work so it wouldn’t be ideal.

 

Post # 16
Member
10384 posts
Sugar Beekeeper
  • Wedding: September 2010

If this house falls through, if you live in an area where rentals fill fast, I would sign another lease and then break it after finding a replacement tenant. That’s what we did! It worked out great and we didn’t have to pay anything extra.

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