Short Sale Question....

Yodah · ‎10-05-2015

Me and DW are looking to buy a house through FHA. We were approved and found a house we really like.... The house has been on the market for a year now. We made an offer on the short sale and it was accepted by the seller. Our realtor let me know that the sellers realtor said that our offer was great. Its been about 2-1/2 weeks waiting to here back from the bank. My realtor informs me that the bank says the seller should be able to sale the property without doing a short sale, and that the sellers monthly financials should be able to support their mortgage. The seller of course disagrees, and wants to do a short sale....

Anyone have any insight on what might be happening?

If the bank wanted more money, wouldnt they just refuse the offer, or counter?

Why would the seller want to do a short sale, when the bank reviews their financials and say that they should be able to make the mortgage payment and just sell the house without a short sale?

Any info. to just kinda shed some light on the other side would help

Thanks

Anonymous · ‎10-05-2015

I know that when I SOLD a house on short sale - the bank originally DENIED the offer - even though I had accepted it. Then I had to write a letter - and called - the bank. I told them the house was located in a depressed market - had been on the market for over 8 months, that it needed a TON of work and provided estimates to the bank. Finally - they accepted the offer - because I told them the house was already in pre-forclosure and that I was ready to file bankruptcy and write off the balance if they didn't accept the short sale amount.

Finally they did.

Short Sales are usually a time consuming process. Good Luck.

Yodah · ‎10-05-2015

Thanks, I know it can be a time consuming issue. However the home is in excellent conditon and is only a few years old. As a matter of fact there is still new construction going on in the neighborhood (which is why I think its harder to sell) people can just build new if they want.

Is the issue that the seller may be on the hook for past missed payments, if they dont do a short sale? Or is that something that the bank and the seller has to negotiate and is probably what the hold up is about?

StartingOver10 · ‎10-05-2015

@Yodah wrote:
Thanks, I know it can be a time consuming issue. However the home is in excellent conditon and is only a few years old. As a matter of fact there is still new construction going on in the neighborhood (which is why I think its harder to sell) people can just build new if they want.

Is the issue that the seller may be on the hook for past missed payments, if they dont do a short sale? Or is that something that the bank and the seller has to negotiate and is probably what the hold up is about?

Sounds like the seller doesn't qualify for a short sale based on your initial post. Seller has the resources but doesn't feel like paying the mortgage.

The market sounds like it is good - after all, the house is only a few years old and is in excellent condition and there is still new construction going on in the neighborhood.

To recap:

Seller has the funds to pay.

Neighborhood is not depressed.

Seller just doesn't feel like paying his mortgage and wants the bank to pick up past due payments, if any, plus the costs associated with a short sale.

The lender IS UNDER NO OBLIGATION TO ACCEPT A SHORT SALE.

Normally I am a proponent of short sales, but not in the case where the seller is trying to take advantage of the lender. This sounds like a situation where you would be better off either convincing the seller to sell it traditionally and pay the short fall out of his assets (which s/he has according to your first post) OR find another property.

Anonymous · ‎10-05-2015

Honestly? I would find another property. This already reeks of being difficult, and who needs that when trying to purchase a home?

Yodah · ‎10-05-2015

What I figured smh..... but only issue is there are NO other houses we like, not even close.... This particular property was built with ALL the upgrades. One other property like it is listed at higher without the upgrades, but its 3 years newer.... Hopefully seller can be convinced to just sale without the short sale.......

Thanks for all the replies...

ezdriver · ‎10-05-2015

@Yodah wrote:
Me and DW are looking to buy a house through FHA. We were approved and found a house we really like.... The house has been on the market for a year now. We made an offer on the short sale and it was accepted by the seller. Our realtor let me know that the sellers realtor said that our offer was great. Its been about 2-1/2 weeks waiting to here back from the bank. My realtor informs me that the bank says the seller should be able to sale the property without doing a short sale, and that the sellers monthly financials should be able to support their mortgage. The seller of course disagrees, and wants to do a short sale....

Anyone have any insight on what might be happening?
If the bank wanted more money, wouldnt they just refuse the offer, or counter?
Why would the seller want to do a short sale, when the bank reviews their financials and say that they should be able to make the mortgage payment and just sell the house without a short sale?

Any info. to just kinda shed some light on the other side would help
Thanks

It is the seller's responsibility to secure the lender's approval. The lender has made its position very clear.

You [buyer] now must decide if to walk or wait for seller to secure the lender's approval. Sounds like the seller will have to do battle with the lender and that may take a long time. The listing agent may not have prepared the seller for the short sale listing prior to actually listing it.

Anonymous · ‎10-05-2015

You have 3 choices then....

1. Increase your offer - if you really want the house and can come up with more.....

2. wait for seller to change his mind or come up with the difference,

3. walk away.

Good luck.

compassion101 · ‎10-06-2015

Sounds like the bank has looked at the financial situation of the seller and determined that they can afford the mortgage, but they just don't feel like paying it anymore. Even if they might let it go t oforeclosure eventually, the bank can't afford to just take a short sale loss anytime someone asks them.