would there be addendums? Should I be concerned, or is this a normal part of a bank owned home sale?

How long does it take when the property is a short sale? The owner approved the offer, but what about the bank? How long does it take? I’m trying to get an estimate. Thanks
Well it makes sense that the banks should accept any offer because once it goes into foreclosure, they might even have to lower the price even more? So I don’t understand what the bank has to gain/lose..it’s on the road to foreclosure anyway!!

I offered 13% less then the asking price which I was told by my agent the bank had been previously approved. I hadn’t heard that the bank had accepted my offer, but does this mean the bank has accepted my offer, or does the listing agent think they will? Does it mean that someone else made a higher offer? Or does it just mean diddly?

I made an offer on a short sale in the Tampa area. I offered $100K less than the advertised asking price. Four days later my broker contacted me and said the bank had lowered the asking price by $70K. She said this new asking price was “bank approved” and closing could take place within 30 days. I raised my offer to the new asking price. This was on a Friday.

The following Tuesday, the broker contacted me to say the bank wants to sit on my offer for 180 days. I told her I didn’t understand and explained that I only raised my offer because she told me that price was bank approved. In fact, the listing has been revised to read “Approved Short Sale at listing price. Can close quickly.”

The agents only explanation is that the bank is claiming that the asking price was only approved for one day and we submitted our offer after the close of business that day.

I don’t see how they can get away with advertising “bank approved” and not accept my offer. What recourse do I have? The agents and brokers offer no satisfactory answers. I’m considering contacting the State Attorney General.

Thanks,

Short Sale Bpo Process

Selling short is the process whereby a lender accepts less than is due on a mortgage or deed of trust that they hold against a property. This process typically happens when the property’s value had dropped below the amount due on the mortgage. This situation is generally referred to as the property being “upside down” in equity. Currently there are as many as 12,000,000 Americans who are facing the question, “Why should I make a mortgage payment when my home is worth so much less than I owe?” Short Sale Bpo Process

If a homeowner knows he will not be able to continue to make his mortgage payments he has the option of doing a short sale if his lender agrees. The lender generally will allow a short sale instead of having the expense and time involved to take the homeowner through the foreclosure process. The homeowner must sell the property because he is the owner of the property, the lender can not sell the property on its own unless they foreclose.

Short sales are often done by realtors®, real estate investors, or entities who specialize in doing short sales. The actual short sale, while being a loser for the homeowner, is a profit maker for all the parties involved in the process except the homeowner and the lender. Because of this the lender requires a “short sale package” be completed and at least one property analysis to determine the property’s market value. This analysis is usually done by a real estate agent and the report is called a Broker’s Price Opinion “(”BPO”).

If an investor is trying to buy the short sale property he needs to get the lowest possible price to make a profit, and he tries to “influence the BPO” or the person at the lender handling the case. This lender representative is called a Loss Mitigation Representative (”Loss Mit Rep”). Influencing the BPO can be done legally in a number of ways. Legally influencing the Loss Mit Rep can take more effort.

Following are a three techniques that have worked for us: Short Sale Bpo Process

1. Frequently, the Loss Mit Rep doesn’t answer your telephone messages or e-mails and your perspective short sale seems like it will never get done. It’s frustrating and very aggravating but this “make-um sweat” is part of what they are trained to do. Besides she probably has other deals she can complete where she will earn an easier and larger commission. Yes, Loss Mit’s make commissions (bonuses, etc.) based on the discounts (small is better here) they get accepted.

A very powerful technique to overcome the aggravation of not knowing where you are in the process, if you seem to be trading punches with the Loss Mit is to cancel your file. Stop the processing by sending a Cancellation of Offer Notice. The next thing to do is wait 10 days and resubmit the file from the beginning. A new Loss Mit will be assigned to your file and it is highly likely that you will have a better chance because the work has been completed on the lender’s side. This “cancel and resubmit” is standard operating procedure (”SOP’s”) for many of the larger short sale operations in the country when they know their offer is below what is the “easily acceptable” offer (78% - 82% of final judgment) for the lender.

2. If you aren’t regularly submitting “Sexual Offender” information with your short sale package you should consider it. This information is easily obtained online and is a powerful psychological motivator for the Loss Mit Rep doing the package. It may be just the one piece of info that makes the difference in your deal getting done more quickly.

3. Here is a best kept industry secret - the Loss Mit can accept 80% of the BPO without approval from a Supervisor. Most people doing short sales are striving to get the BPO to the price they are offering and often it comes in at that price. Sometimes it comes in ridiculously high. This is most often the BPO agent trying to impress the lender. Depending on the motivation of the buyer you should have already in hand, negotiate like crazy as the other option if the property goes to foreclosure, the lender will pay an additional $45,000 cost (on average) to get the property through foreclosure.

This simple ideas have made investors hundreds of thousands of extra dollars on short sale packages so the next time you decide to try a short sale integrate at least one of these into the process. Short Sale Bpo Process

I know the short sale process is a bit longer, but we submitted an offer on an approved short sale. The bank finally counter offered and we accepted. It’s been 2 weeks and we still have not received any purchase agreement. Our lender has not heard anything either. Our “realtor” is also the listing agent and keeps telling us she should have the papers in a few days. Is this typical?