Chicago

[tenniscubby18]

We recently placed an offer on a short sale (that had 2 mortgages on it at the same bank) property about 4 months back and were delighted to hear that the sellers had accepted our offer. We realized that this process could be a lengthy one depending on the lender approving our offer as well. Shortly before Christmas, the listing agent contacted our agent and informed that the person processing the second mortgage had waived the second mortgage and would work with the person processing the first mortgage and that we should have an approval within the first two weeks of 2012. Needless to say, that time has come and gone, and the listing agent will not return our agent's calls. Not knowing too much about the short sale process, is this something to be worried about? Should we try to go over the listing agent's head in this situation?

[BugMeNot]

If you know who the seller's attorney is you might try having your agent or your attorney follow up with them.  You might also try contacting the selling agent's broker to find out why the selling agent isn't returning your (or your agent's) calls.

Good luck.

[joe_creole]

If you decide to enter into a short sale transaction you need to be very patient. I'm pretty sure if the seller's agent had any news he/she would get back to you immediately. The agents want to close just as much as you do in order to get paid.  4 months is not a very long time to wait in the short sale world. I have personally waited over a year and I know of those who waited over eighteen months. In my experience, there is nothing you can do to speed up the bank processing. You basically need to forget about the property and tell your agent to call you when a closing date is proposed.

[tenniscubby18]

Thank you very much for your responses guys, it is very much appreciated.  We did get some recent news that the bank had decided to hire an appraiser to go in just this past Monday and appraise the house.  Apparently the bank is okay with the owners doing the short sale (as they have received updated financials three times now in the past 5 months with 2011 taxes done as well from the owners), and I am told this is good news as we at least know the bank is moving forward with this.  Apparently banks do not like paying for appraisals unless it is one of the very last steps.  Thoughts?  

Anyways, just got the call today that when the appraiser went to look at the house on Monday, that they could not get in as the city had come by to shut the water off as apparently a pipe burst in the upstairs master bedroom and caused some pretty significant damage.  The person living there was away for a week or a few weeks I am told and that the appraiser could see drywall had fallen down from the ceiling in the kitchen.  

I am told that this deal is not completely dead yet as the bank still has to decide what to do going forward.  There should be an insurance payment coming in, and I guess the bank has to decide whether to take the insurance payment and apply it to the mortgage payments and bring those up-to-date, and then leave the house as is, or to approve our offer and allow the house to be fixed.  I was wondering if anybody here could tell me if they have any experiences like this or just general feedback regarding something like this during a short sale scenario........

[house-hunting]

"apparently a pipe burst in the upstairs master bedroom and caused some pretty significant damage"

frankly, the deal is dead for you. would you want to live in a house with mold?