I’m frustrated with real estate why do they call short sale houses if they take for ever to give u an answer?
Mar.20, 2010 in
Short Sales
I saw this house that was my taste but my real estate told us it was a short sale.He said these houses take a while to get approved by the bank but we went for it anyways. We put an offer the bank took about 2 weeks to give a yes or no answer they said yes after the two weeks. They just needed to get the paperwork ready, after a week past they said no to us. How could this happen I said don’t they want the economy to become better. So almost a month of waiting just for an answer couldn’t believe it because everyone makes it seem that its easy.
March 20th, 2010 at 11:27 pm
The “short sale” referred to the bank taking less money than they were otherwise entitled to. You were declined because of your credit.
March 20th, 2010 at 11:45 pm
That was quick. I waited 3 months for a house before I just gave up waiting. Banks are more at fault than anyone in this mess.
March 21st, 2010 at 12:15 am
The game today isn’t fair and the reason is the lenders. While Realtors are bound to present any and all offers, the lenders are taking advantage of that by waiting to see if a better offer comes in. As long as they didn’t sign agreeing to any offer, only telling you verbally, then you have no grounds to file a complaint. I agree with you, this practice isn’t fair, but try proving it. And the Realtor doesn’t care, he is paid either way, as a matter of fact, the higher the price, the better his/her commission in some cases.
March 21st, 2010 at 1:06 am
The short in short sale refers to the fact that the amount the home is selling for is short of the full amount owed. Since they aren’t getting 100% of the money owed, it isn’t surprising that they want as much as possible and drag their feet in taking a loss.
It is similar to the word subprime in lending. Subprime refers to a borrower not being a prime risk (and therefore paying more for the loan and being a questionable credit risk), not that the loan is offered at a interest rate lower than the prime rate. Real estate can have some confusing terms.
In your situation the bank dragged their feet in getting the paperwork together in hopes of getting a better offer and it looks like they did. It sucks – but good luck proving it.
good luck!
March 21st, 2010 at 1:13 am
What probably happened with your short sale is the bank’s negotiator approved it and sent it on to the investor that actually owned the debt, who apparently did not approve of the price. Happens with some frequency; some investors have ridiculous expectations and pretend they aren’t taking a loss if they hold onto the debt. Or perhaps they just don’t want to have to recognize the loss on their books yet.