I understand that 3% or 6% is the standard seller’s contribution. If a seller agrees to this contribution, can their lender still decline? Ie, Can their lender offer 0% contribution towards closing costs?

I put an offer on a home back in November and the property has been “contingent” since then. How much longer?

We put in an offer on a short sale home. The bank (Wachovia) came back after only a month and counter offered 20K more.
We originally asked for 3% seller help but they didn’t mention this is the counter.

Once we accept this offer, we are already pre Approved and ready, how long does it take to close at this point?

Thanks!

tomorrow. My Real Estate agent is telling me that since we have not gotten an approval from the second bank we must submit a cancellation letter to cancel our contract by today because the house is supposed to close tomorrow. She is concerned that if we do not close tomorrow we might be at risk to lose our earnest money that we put down ($3,000). Does anyone know what my rights are to get that money back. I want to stick with this purchase, and I know that short sales can take months. I am fine with them holding the money, but if the bank does not approve the sale will I get my $3,000 back?
Thanks everyone!
The approval that we are waiting for is from the bank which owns the second mortgage for the current seller. We are not the ones with the second mortgage… we need their approval because they are owed money from that property that they are obviously with a short sale not going to get.
The second mortgage is for $134K. We have asked the bank to tell us what they require to sign off. Both agents as well as the lender are willing to contribute part/all of their commisions to cover an amount negotiable with the second bank… the problem is they haven’t even responded.

they will put the property back on the market because they think they can get more for it even though we offered $50,000 over the list price. My lender is telling me it takes an average of 5-6 weeks to close and can’t guarantee that we can close that quickly.

If we aren’t able to close is it likely they will just put it back on the market rather than give us an extra week to close?
Our lender would not accept all of our documents to fully approve us until we had a final approval from the seller’s lender so we are sending them on Monday.

How do you avoid foreclosure and pay the remaining balance of your loan at the same time? A short sale might be the best option. A short sale happens if the value of the loan balance is greater than the sale price of the property. This does not sound as a viable option for the lender. What will you do to make him approve of your proposal? Fortunately, most lenders would agree to this arrangement. This is better than losing more if the home is foreclosed.

But then again, you have to be ready to present your short sale package to the lender. Keep in mind that not all homes qualify for a short sale. In some instances, lenders would not agree to this especially if they know that they can earn more if they foreclose the home. It is your job to change their minds.

The question is how do you close the deal? What are the things you need to bear in mind? The best thing to do is to hire someone to represent you. A real estate professional will be able to present your package well and he knows how to negotiate with the lenders. You will also be certain about the next steps you should take.

If you are negotiating in behalf of a borrower, do not forget to bring an authorization. See to it that you have all the necessary documents to present a strong package. Check that you have the medical documents, divorce decrees, tax returns and supporting financial statements. The documents will vary depending on the situation that your client is in.

Aside from the documents and other requirements, you have to be prepared as well. Remember, no matter how valid your package is, this may not be approved if you do not have a good relationship with the lender. This is the advantage of being represented by a broker. He has been negotiating with lenders so he knows how to convince them.

A loss mitigation officer will talk to you and discuss the losses that the lender will incur. You have to hear him out and be professional about it. After listening to him, you will be given the chance to present your side. It is essential that you know all the documents you have. Be ready to answer questions as well.

Trust the package you have and present it well. There can be cases where in the lender will not agree with the value you have presented. Do not be easily swayed. If you know that, your calculation is right, defend it. Present additional evidence such as photos as to why you have presented such values. They will surely reconsider after that.

After the approval, make sure that you act on it right away. It is important that you sell your property because the short sale comes with a due date. Normally, the lender will give you thirty days. Do not waste any time and find a buyer who will be willing to pay the house at the pre-determined value.

Short sale will help prevent foreclosure. However, you have to be ready to present it convincingly.

I understand the bank can take months to accept/counter-bid your offer. But after a price is accepted, is the process expedited in generally the same amount of time of a non-forclosure?

We put an offer in on a short sale 3 weeks ago and have now heard from the other broker that he has talked to the bank who is almost sure the offer will be approved but they will take another 2 weeks until their final decision. Considering our offer is approved, is it true that short sales close very fast once the bank has approved everything, like 1-2 weeks? All we need to do is the inspection.