Thread: Short Sale..Light at the end of the tunnel....well we don't know..

It is possible that the lender sent the seller some documents to sign and the seller doesn't want to sign.

Sometimes the lender will negotiate the deal and then follow up with a promissory note where the seller/borrower promises to pay back the difference at a later date. The seller might be trying to re-negotiate this.

Sometimes the second mortgage bank kills the deal just because they can.

Sometimes the lender finds out the seller/borrower has assets and the lender wants them.

Sometimes the foreclosure department of the lender follows through with the foreclosure and everybody loses.

All you can do is wait and see if it works out.

Originally Posted by EIUGrad2005

After continous follow ups with our agt, the selling agt for months, the sellers finally got verbal approval from the bank a little over two weeks ago.

Well, verbal agreements are worth the paper they are written on, if you caught the meaning... Until you get the agreement on paper, with all the terms and conditions of the lender's agreement, you have nothing. And, I need to ask, WHO told you they had an agreement? Again, if it wasn't the lender, I wouldn't trust anything I heard. In a SS, the lender holds the cards and they are the only ones I will believe.

Later.

Apparently the seller had heard from the lender they accepted our offer, who then got to their agent who then called ours....here we are approaching week 3. Selling Agt back in town today ours out of town...just running around in circles....

Unless you have written approval from both banks involved you have nothing. The approval letter doesn't usually just say approved. It will have what the max amount of this fee or that fee can be charged, an expiration of the approval, possible attached promissory note that are needed, acknowledgment letters, etc... So the sellers just receiving a verbal leaves out a lot of details the sellers also have to agree will work for them.
Were you told they got verbal approvals from both banks? I normally get a written approval and not a verbal unless the banks says they may need something else before they will approve it.
It is up to your agent to keep on top of the other agent to see what it going on. Sometimes it may be nothing b/c these banks loss mitigation dept. aren't the easiest to deal with sometimes.
It's up to you to wait or not. I would first have your agent inform the other agent (preferably a void by this date addendum) that you will be voiding the contract if you don't get some progress report from the short sale bank in a week or so and see what happens. How long did you initially have set for number of days for approval?
This is the fun of a short sale or how most us refer to long sales now.

Originally Posted by craig

Unless you have written approval from both banks involved you have nothing.

As the first thing that I mentioned in my previous post... If it is not written, it does not exist!

Later!

We sent a nasty gram email to our realtor even though on vacation he got it. Within 24 hours our lender was calling us (works with our agt as well) and informed us that he is stepping in. He is also a short sale negotiator??? I think that's what he said he is. All three partys, selling agt, our agt, and our lender are having a meeting tomorrow and hope to get this squared away and finally have us some answers. I guess when you're going on month 5 of this deal, you just gotta try to light the fire under everyones *** one last time and see if it works. Apparently it did....now we just have to wait and see and of course as everyone has said....VERBAL IS NOTHING UNLESS WRITTEN......lol we know....

We have certain dead lines set for both sides and we feel that we are giving them a generous amount of time to get their act together before we walk away....but then why let someone else get a house we've waited so long for in a much shorter amount of time? I think we'll stick in there...how much longer....not sure.

A meeting between your agent, the sellers agent and your lender is missing the most important part of the equation. None of these parties have any say.

It all hinges on the seller's lender.

Yup talked to the lendor today about their meeting....all the information that we have gotten over the past 5 months is semi correct and yes nothig was accompished from this meeting but just our questions answered. Lendor did not seem concerned yet because he said these short sales are just piling up etc with the bank blah blah blah...so these delays are normal

All we can do is wait for the seller to constantly push and push the bank until she gets written approval.

Just makes you think....when do we give up? or do we?