07-07-2010 06:53 PM
Since the approval from first bank had already expired even before we were notified, we have asked seller to get an extension.
Does anyone know in such cases, how much time do banks take to give same approval with extended dates? Is there any thing which can be done to speed things up? Does this start the short sale approval all over again with an indefinite wait? What is the probability of getting an extension in the first place?
07-09-2010 09:56 AM
It may not have been the sellers fault as far as the second bank is concerned, they will typically need to see what the first bank is receiving before making their final decision, since the first lien has the first position in terms of being repaid and hold the upper hand in short sales.
Working with banks on a short sale is never easy and it's hard to say how long you'll have to wait to hear back from them about the extension. It's possible that they may not be willing to extend it all or not offer a very long extension, but hopefully they will. It doesn't start the process all over again, but it still doesn't leave a lot of time if you have less than 3 weeks to close. Your lender should be able to process it in that time, but if any other hold ups come up or the seller needs to get approval on something else or another signature from the banks, then that would make things more difficult to close by August. Has your lender started working on the file and ordered appraisal, title work, etc.? It can be risky to order an appraisal if you don't even know if the first bank is willing to extend, but if you really want the house than you might have to roll the dice.
An extension request definitely shouldn't take 4 months for a response, but I would expect at least a week or two, could be longer. The seller's agent and your agent should keep in contact with the reps from the banks as much as possible to help keep things moving, but there's not much else to do when the banks are already working on so many other short sales and everybody is asking for a speedy turnaround.
07-09-2010 10:31 AM
Thanks for replying.
We have began our process with our lender, but have asked her to hold off from doing the appraisal since we have lost money once on appraisal in the recent past on a short sale and dont want to risk that again. I do understand your point though the bank might get back and may not offer a very long extension at best. However given that we dont even know if the bank will extend, there is no incentive to put that money on the line.
Today will be 2 weeks exactly since asking for the extension - we had also given the seller upto today to get this extension.