We received the phone call on Wednesday from our realtor, who broke down the situation. The mortgage bank simply has never gone that far below appraisal value. Despite the fact that the house was appraised at $325K and only listed for $275K, the seller's accepted our offer of $255.5K just to get out and avoid foreclosure.
Even though both parties want the sale to happen, their mortgage bank has simply kept us in the dark, after multiple attempts from both realtors.
Ours thinks that we should start looking at houses again. Waiting for the our offer to get approved seems to have no end date and we could be waiting for months.
It kills me to be back to this point, especially since friends have looked, offered and closed on a home in the span of our "waiting period".
Back trolling on Zillow for now...
It has been two months since we put in our offer on this latest home.
Our realtor has advised that if we cannot get an answer by the end of this week, we should withdraw our offer and start looking at houses again.
Is this common practice for short sale homes, or rather just bad business practice? Two months, really...
So should we stick to our guns, or start from square one?
Last week, we got an update. Our offer had made it through the "automated process" at the seller's bank, and will *fingers crossed* be put in front of a real person this week.
A real person! A living, breathing human being that will look over our proposal and give us a yes, or negotiate on the bank's behalf.
From there, we could close really fast, or not. Our realtor said that the paperwork states a May 30 closing, and we'll have a month overlap before vacating our apartment.
"The Chase short sale negotiator received the completed addendum today. Yes everything moves at a snails pace in the short sale world. We'll follow up again this afternoon. Everything Chase needs is there so that was supposedly the last hurdle. A little more patience and I believe we're at the end. Hang in there!"
Hi Troy and Patti,
A midweek checkin. I've followed up a couple of times this week and no new information. I'll keep you posted, just want you to know you're not forgotten just stuck in short sale purgatory.
Thanks!
Matt
No, there have been no felonies or misdemeanors in this house hunting journey. The crime I'm referring to is not writing.
I really wish I could keep up to speed with this blog, but unfortunately…nothing has happened.
This Friday will be four weeks since we put in our offer. That's four weeks of waiting and waiting for the seller's bank to just tell us yes or no.
We've heard two pieces of advice that are keeping me from losing hope. A co-worker of mine said that she waited a full month for approval on her house.
Also, Troy's co-worker said that banks are usually very quick to say no. Since we haven't gotten a no, that's a possible future yes.
Any suggestions for waiting for the shoe to drop?
I haven't posted in a couple weeks, mostly because I didn't want to jinx our progress on our latest bid. We went back for a second visit on this house to see if we could reconsider, since our house hunt seemed to be flailing.
All things considered, it was still a great house that was very well taken care of. The basement wasn't finished, but we could afford ourselves some time to do it in the future. Bedrooms and bathrooms were fine, and we came to a compromise on office space.
And the one hang up, as there is always one with us, the house was listed as a short sale.
While this might've been great a few years ago, the fact is that short sales and foreclosures are anything but convenient or straight-forward. We put in our bid almost two weeks ago. Since then, the former owners have accepted our offer and now we're waiting for their bank to approve. We've given them all of our information, and will be putting down our 1% "good faith" cash on Friday.
But despite our diligence, there is still no guarantee that we'll get the house, or close on it in any timely manner. Short sales can take anywhere from 60 days to 6+ months to close. That's an extended time paying escalated rent in this apartment.
It might really be good faith that this third offer will be the last. There is no other competition on this house, and we are prepared to pay up to list price. Monday (and hopefully the decision) cannot come soon enough.
We've seen 32 houses in a little over a month. That is obscene, compared to the posts I've
read about first-time home buyers. Two bids so far and no luck. I've picked out yet another slew of potentials online today. Please, please let one of them be it.
Picking up where we left off, our highest and best offer was competitive for the market, but not for the law firm that holds the property. They countered with $290,000, which we would not meet. The house was not worth that price, considering the unknown amount of work that it would need to pass inspection. It was a gamble we could not make, regardless of how beautiful the house COULD be.
We saw 6 yesterday. While they all could have worked, none were it. Our lack of particular interest in any of these houses has got us very frustrated and confused. We don't want to settle for any house. We'll be living there for at least 5-8 years, and I'd rather not be hating it once we move in. We have a little bit of time, time enough to where we can still be discerning about where we live.
Back to the drawing board, for what we want and what we will need in our future home.
1) We are no longer factoring in my mother moving in with us. While it is a generous offer, and one that we will offer again, we can't risk our credit or having to make super high payments just to accommodate IF she decides to move.
2) Closet space and openness are a key requirement.
3) Basements aren't a must, but an escalated list price better have one. If one house has a finished basement for $260K, and another has no basement and is listed for $270K, that has to be taken into account.
We received the phone call on Wednesday from our realtor, who broke down the situation. The mortgage bank simply has never gone that far below appraisal value. Despite the fact that the house was appraised at $325K and only listed for $275K, the seller's accepted our offer of $255.5K just to get out and avoid foreclosure. 
