7 months of waiting; now the race is on…..
Flashback to May 15, 2009; Peoria Arizona. I’m working with a great couple who are looking for a home in Vistancia Village! We’ve focused primarily on bank owned but have found the competition stiff. Someone usually outbids us or has cash rather than our FHA financing. We’ve gotten beat out on 9-10 properties….clients are getting discouraged.
Frustrated, my buyers ask about short sales. As they review properties listed on MLS, they find a few that appeal to them. I explain the process involved in a short sale purchase along with the pros and cons. They insist on taking a look at a couple of properties.
The first few are reject immediately. We then drive up to a property I know they will love. It’s an amazing tri-level in a great neighborhood with super neighbors (ME). I explain that this is a short sale, but they are insistent on seeing it….besides the listing agent put in the remarks that a response would be forth coming in just 2-3 weeks after receipt of an offer.
Just as I thought….they love the house. It’s the one! They want to submit an offer….we do. The listing agent notifies me that they are going to submit my client’s offer to the bank. The “LAWYERS” negotiating the short sale expect an answer quickly…….
2 weeks later, I call and inquire about the status of the short sale! I’m told to be patient….these things take a while.
2 weeks later, I call and inquire about the status of the short sale? I’m told to be patient. (Hmmmm, what happened to an answer in 2 weeks! )
Several weeks later, I call and inquire about the status of the short sale. This time instead of receiving a call back, I’m sent an email. I’m told that these things take a while and I will be notified if and when the bank accepts the offer!
I won’t bore you with the weekly details….because I did try to get feedback from the listing side on a weekly basis……
Fastforward now to November 25….two days before Thanksgiving. I send the listing agent an email inquiring about the status of the short sale. I receive notification back that they have receive an approval letter from BOTH lenders and my clients have to close by the 18th of December! WHAT????
That’s 3 weeks to get inspections done, an appraisal completed, the underwriters to approval the loan, have the bank approve the final settlement statement, sign documents, fund, and record! Not to mention, there is a holiday in there somewhere!
In today’s market, getting a deal closed in 30 days or less is difficult to say the least. Most lenders are asking for 45 days to close. Negotiators approving short sales need to be realistic when they set the COE for approved short sales. After waiting months for them to make a decision, my clients are stumbling over themselves trying to get everything done in time to close as dictated. Will we get it done…..heck yeah!
