Short sale headaches

elle+tee · August 2013

We are currently under contract with a short sale. Our offer was counter offered by the bank and we accepted but had to write up the counter offer and submit to the bank since their counter offer was verbal. Since submitting this offer (at thir counter price), they have requested an updated hardship letter from the sellers. Has anyone else run in to this in the process? We are stuck in limbo thinking there may be a chance they could squash this whole deal at any moment

mcskatcat · August 2013

I haven't gone through that, but your realtor should have informed you the very likelihood of a short sale being such a headache. We were told that short sales can often take months of back & forth negotiation, and that, yes, they can also fall through after months of negotiation. For that reason, we didn't look at short sales.

It's probably not too late for you to walk away and find a normal house if you want to consider it. It might be a less stressful option.

elle+tee · August 2013

If you haven't dealt with a short sale you probably shouldn't have responded. I am well aware that short sales are much more involved and complicated than a regular sale. I was specifically asking about the hardship letter in my question. We are fine with the back and forth with the short sale, it's just the hardship letter that is throwing me for a loop. I'm not sure if they are just asking for it be because the original hardship letter expires after a certain amount of time (we have been under contract for over 4 months) or if there is some other motive behind the bank requesting it. If you haven't gone through a short sale, you wouldn't know the answer to the question.

LoveKiss · August 2013

The thing is that you just never know with a bank. They are taking a loss and are probably looking for any reason to stick the seller with the full bill (i.e. NOT approve the short sale). So if they have any reason to believe that the seller's situation has improved even just a little, the incentive is for the bank to not approve the deal because they think they can get more money out of the seller. The best you can do is hang in there and pray.

vpine · August 2013

We dealt with a short sale and ended up saying goodbye to it and finding a house that wasn't short sale, seller was asked for hardship letter and lots and lots of documents actually. The bank didn't sign off on short sale by the deadline and we decided not to extend it.

It's a long process unfortunately and I've heard (from my realtor) how there are times when short sales are not approved at the end or sellers change mind.

Short sale headaches

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