How to force a short sale quickly

[Anonymous]

i keep reading that short sales take forever.  We found a home in our target area for less than our target price.  We talked it over and decided to offer what the bank is asking for.  Will the bank still take their sweet time on this or can we get them to move quick on this?  we have the financing and all

[203bravo]

Is this a short sale or a bank owned property?

If it's a bank owned property then they have established their price and will accept the listed price.

If it's a short sale then there could be issues - has the bank already approved the short sale? if so then it could be a little quicker process. = usually the result of another buyer attempting to buy but the deal falling through at some poiint.

If the bank has not accepted the short sale then you will have to offer to the current owner - they will in turn take it to their lender who will have to make a decision to allow the short sale or not of if allowed for what price. -- this is the typical process that takes months on months.

[Anonymous]

It just says "subject to 3rd party approval"

[IOBA]

*moving over*  

"Come sit right here, next to me.  I have popcorn."  

I am in a similar boat...here's how ours is working.

* there are two lenders that have liens on the house (lender A and lender B)

* they hired a "neutral 3rd party" to handle the transaction so everything is "fair" to both lenders

* a realtor was brought on board

* we made an offer on the house

* it was presented to the owners of the house (the ones that listed it for sale)

* the owners signed the contract and we had a "ratified contract"  (the listing agent sent a nice  email telling us this!)

 ** just means that the seller accepted our offer as is

*  the listing agent took the ratified contract and forwarded it to the "3rd party" for review.

* the 3rd party ran some numbers, figured out what each lender would receive after closing costs had been paid.    The percentage of "loss" for each lender is the same - ie: both lenders would take a loss of 25% of what is owed to them from the owners.   (The number is just an example.)

* once the numbers are figured out, the 3rd party forwards the numbers to each lender respective to the lender's piece of the pie.

* each lender has to decide if they can live with the deal.

 ** if they can, they reply back to the neutral 3rd party with a yes

 ** if they can't live with the bottom line, they reply back with a no and a counter offer

* the 3rd party presents a new contract to the listing agent to send to us (via our agent) either accepting the terms or counter offering

* the new contract must be ratified by lender A & B & us (the owners are out of the picture)

* then the countdown begins...appraisal, inspections, etc.

I hope this helps you understand.   If there is already a 3rd party, that means the owners have gotten the banks permission to do a short sale.

[Anonymous]

Great thanks for the info!  we decided to get away from short sales.  our credit reports are only good for about 45 more days so we found a house still in our price range and can expect to get a PA quickly

[IOBA]

Normally, I wouldn't even consider a short sale.   This house is in move in condition and relatively perfect for our needs.   If it doesn't work out, then we will just stay in our tiny studio and save up.  We know we are moving in another 4-5 yrs anyways.  I personally want  a full kitchen.     That is my big "wish list" item.   My second "wish list" item is to be able to have a private veggie garden.  (Our neighbors now steal the few things we grow - tomatoes and peppers!  We get no peppers although there is a good crop from several plants and we have to pick the tomatoes when they are green if we hope to get one.)  And the herbs...same story, different day.  Argh!