short sell buyer question

**gcxp** · 09-19-2010, 04:21 PM

team

today i got call from my real estate agent that listing agent of short sell house has informed that bank who is conducting short sell process had officer working on our offer no longer with bank and we as buyer need to start whole process again. i am wondering if there is something fishy in this process. here are the events happened so far

- i as buyer made offer above short sell price
- my agent submitted offer to listing agent
- listing agent says that offer got submitted to bank via online system ( boa bank ). i have no confirmation of this as email/fax
- after 2.5 months, listing agent called my (buyer) agent that bank did appraisal and came back with higher offer. once again , listing agent provide no PAPER work at all
- after few phone call, there was work sheet provided which listed all sort of number but NO reference to bank countering our offer.
- my agent suggested to accept and we accepted the offer
- after 1 month , now listing agent saying that bank officer who was working on file is no longer with company and asked us to submit offer again since process starts as new again. NO PAPER work trail again

my questions
- do you guys sense any issue?
- is listing agent doing this so we drop and he/she gets somebody on this?
- listing agent informs that seller isn't making any money on house and bank is loosing money but we can see seller have house on rent so he might be doing this to make gainful profit ? i am no clue how , but u guys might have some ideas
- my agent keep telling me, i can walk away any time but ultimately i loose. is there anyway to find out real truth or gain access to bank officer?
- since market have went down , if i make new offer at low price, can they take that as excuse to reject it right away

any other info would be helpful

thanks
gc

**Greg** · 09-20-2010, 05:57 AM

It sounds perfectly normal to me. The listing agent isn't doing anything fishy. This is just how the banks handle short sale and apparently they are no better at handling our money.

Your best bet is to keep shopping for another house while you are waiting for the outcome of this sale. Short sales have a tendency to eventually end up in foreclosure even with a buyer under contract so don't count on this deal happening.

**gcxp** · 09-20-2010, 09:16 AM

Originally Posted by Greg

It sounds perfectly normal to me. The listing agent isn't doing anything fishy. This is just how the banks handle short sale and apparently they are no better at handling our money.

Your best bet is to keep shopping for another house while you are waiting for the outcome of this sale. Short sales have a tendency to eventually end up in foreclosure even with a buyer under contract so don't count on this deal happening.

Thank you Greg for looking in and responding. Thing which puzzled me more then anything is why would they need to start the process from start again. i have to put up contract and bank need to do all their prep work again. Reason being, people ( assigned officer ) come and go , no one need to reset their business for that.

**Greg** · 09-21-2010, 05:04 AM

You will go crazy if you try to make sense out of how the banks operate their business.

It could be your deal was being worked by a brand new MBA who was expecting to be making 250K a year and instead could only get a job working short sales at $10.00 an hour. When they left they could have taken their frustration out by deleting their work load. it happens all too often to be a coincidence.

**agentsranking** · 09-22-2010, 08:44 AM

Keep in mind that even though you submitted an offer above the asking price, this won't necessarily increase your chances of having the offer accepted. In a short sale situation the price is set by the homeowner and the real estate agent. Some agents will list the house for a low price in order to generate a lot of interest in the property and potentially multiple offers in order to get the process started with the bank. Sometimes this can be a good strategy for the seller because the short sale process doesn't begin until the bank has received all of the sellers personal financial information such as pay stubs, w2's, tax returns, bank statements, etc AND a valid purchase agreement. Once the bank has received the offer it can take them six months to make a decision. It's pretty typical that a real estate agent will continue trying to market and sell the property even AFTER they've submitted your offer. They do this for a couple of reasons, the first is that it's really common for buyers to get tired of waiting for bank approval and they'll cancel their offer. The second is during the process, the sellers real estate agent will begin to get a feel for what number is going to work for the bank. If you back out they can tell other buyers the number that will work for the bank to get the deal done. It's pretty common for short sales to close at a price above the asking price.