I'm frustrated with a Northville short sale process and I don't know what to do. We submitted the offer back on 9/09 for this Northville condo. I am the buyers agent. So I don't get much information from the listing agent. She did not even know that the homeowner was going into foreclosure or not. We found out that the home was in foreclosure by driving by and noticing the public notice posted on the front door of the Northville condo. The listing agent says she is not getting any response from the bank. Or that she has not heard anything.
We got a verbally accepted offer at $125,000 back in October. This is a cash deal. During October the bank received a much higher offer of about $155,000. We upped our offer to $145,000 cash. The bank never accepted either offer. Well the other offer dropped out back the day before Thanksgiving.
So there are no other offers on the table. It is a cash offer but we have not heard anything one way or another from the bank. A month ago and we have heard nothing!!!! I am so tired of waiting on the banks personnel and the lack of action that I am thinking of FED EXing the banks president and ask what is up on this deal. I was going to wait until the 15th of January then I was going to climb the chain of command.
What happens in Michigan that once a sheriff sale happens then the short sale must happen within 6 months of the sheriff sale. Otherwise it ends up as the banks property. Then it becomes a foreclosure. And the whole short sale offer is thrown out the window as the property is transferred to another department. I had another offer blow up because the bank waited until the day before the property transferred to act. The bank accepted the offer but said we had to close it in one day. Unfortunately it was a mortgage deal and the bank had not even ordered title work. So it was impossible to close. What a torture for my buyers.
It is sad when you have had a verbally accepted deal. Then the bank doesn't act and the deal just sits and sits. It is no wonder that some banks are in the position they are in. It's a cash deal. It could have closed back in October. It has basically cost the bank $1000 in taxes to hold this property. Don't you love how our bank bailout money is used.
I want my buyers to close on this condo and move on with their life. What do you think I should do? Wait until the bank responds or climb the chain of command on January 15th?
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Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Verbal acceptance is no deal! It isn't valid in most states. What does your broker say? Have you contacted any lawyers? This is why I do not do short sales. I have been licensed since 1979 - you are gambling with the unknown and you have a situation where the blind is leading the blind. Do you have time limits of offer in the contract? If you did, walk. Prices should have surely moved down in the time you tendered this offer.
Jim,
We would like to close on the deal not walk. Verbal acceptance is no deal I agree. But we can't get to the written stage after 3 months. It's sad and I have no direct line of communication to get it done.
Short sales can be very trying. Direct communication from Broker to Broker as strictly a courtesy call often times can get to the root of the problem. That is of course if both Brokers are not bricks.
Do not take a position in oposition to the other agent. Do not start out by saying the other agent is a brick. This will blow up in your face.
Often times the agent may be overwhelmed but if they have a good Broker then things can be answered at least from the brokerage side of things.
The lender however is another matter. But communication through the brokerages is imperative. At least you will both ( Buyer and Seller ) agent be able to answer your clients questions to the best of your ability.
Russ, Keller Williams just started a short sale program, it is easy. Once we have a seller who needs to sell short they come in and fill out an online app. Then in 24-48 hours we get back a response on whether is can be sold short. Saves everyone time and money.
We do have a buyer that like your client doesn't want to withdraw and we have been waiting 6 months on a tear down lake cottage... I know you are frustrated. My guess is the listing agent doesn't have a clue what to do.
We had a verbal acceptance on a short sale, the 2 BPO's were done. The bank asked for one more doc. NO BIG DEAL, they were great communicating with us. The ding bat buyer didn't get it to me by Monday. He got it there by Tuesday.
Sorry they closed the file. It was not our buyer and I went over and over and over again with his part time agent, I have to have this by Monday so she can pull it off her fax machine. Did they do it no?
All signs point to me that you need to have the broker involved. Don't go to the bank, yet, but get the brokers talking.
The fact that the selling agent DIDN'T KNOW the home was in foreclosure scares me. Not following up there, is a sign to me that s/he is not following up constantly with the bank. If there ever was a time the "squeeky wheel gets the grease" it is in short sales.
Missy - Did you resubmit everything to reopen the file? I've had them use that line with me, then I had to go through the "waste of time" of refaxing everything and they opened a new file and accepted it. One of those things where you just amazed at how ineffecient things are.
I had a mess somewhat like this as the buyers agent on a short sale. The listing agent was clueless and unfortunately, botched the deal for us. It's hard to manage the situation as the buyers agent...
Why wait until January 15? Is there something significant about that date that I'm not finding in your post? Tomorrow starts today.
Hi Russ, you have two real important issues. 1. The agent on the other side doesn't know what is happening. 2. The agent may not have supplied the lender with all the paperwork for the short sale. I have had lip service a couple of times and the agent was hiding the fact of ignorance on how to proceed. Asking your broker to make a call "tactfully" concerning the paperwork would be first choice. The lender is a matter of public record. The problem is without the sellers permission you will not be able to help the other agent get the deal done.
Here is a thought...not a happy one but it may get you paid....talk in person with the other agent and find out with selective questioning what paperwork has actually been submitted. I doubt the hardship letter or financials have been done...just based on the responses.
Hope it all works out...Have a Happy New Year Russ.
I have to agree with Toby, get someone involved that will ruffle their feathers and make it happen!
Hi - I would keep shopping, doesn't sound like the bank has it together and it will likely go to foreclosure. There should be enough deals out there to find your cash buyer a great deal and a quick close. I try not to mess with short sales unless I know the bank has decided on a price, and I feel the other agent and the bank have it together. Messing with this is a good way to lose a buyer who can't believe the banks are this messed up. By the way this is discraceful on the account of the bank!
If your client wants the property, just wait for it to come back on the market as an REO. You can look up the Sheriffs deed in he public records to find out when the bank gets it.
At that time it will probably be listed for much less anyway.
I would try to find something else for the buyers. If that REALLY won't work, then I would start talking to the listing agent and their broker. If it appears they aren't following up or don't know how to handle the situation, I'd go up the chain of command at the bank ... but I don't think I'd wait.
It's been my experience with short sales that the listing agent is the one who can make or break it. I would definitely have a talk with the listing agent and see where he/she is in the process. If they don't know what they are doing, they may let you give them direction. It's certainly worth a try. If you approach it as "we're a team, let's get this deal done", you might be surprised at the result!
I agree with Colleen. I would try to find something else. with all the inventory out there it seems as if you should have a good chance of finding something that can actually close.
Marcy
In my experience the best thing you can do is keep calling until you royally p off the bank. They will respond to get rid of you and hopefully close the deal.
Hi Russ the question I would ask is whether the listing agent has any experience with short sales? If not you probably have wasted a lot of time. Many of the short sales that don't happen are because the agent did not handle the paperwork properly.