Question concerning short sales

BriarRose84 · June 2012

DH and I are under contract with a short sale. Our offer was approved by the seller and sent to BOA 3 months ago. We still haven't gotten word from the bank yet and just signed an addendum to our contract giving them 2 more months. However, yesterday our realtor was given 2 forms for us to sign from BOA. One was stating that we weren't committing fraud and the other saying we didn't work for BOA. The fun part was getting this sent to us in the afternoon, and the bank stating they needed it by 5pm the same day!! Luckily it worked out thankfully due to having a scanner LOL. Now, after all this, my question is if anyone knows when this paperwork usually takes place? Could it be that BOA is finally about to get back to us on if they accept our offer? We haven't gotten really any update in the past 3 months so DH and I are hoping this could be the light at the end of the tunnel!!! Any thoughts or personal experiences?

gracie2762 · June 2012

We had to do the same thing for the short sale house we bought. I remember we had to sign something stating that we weren't related to the sellers in any way. I guess they just want to make sure that you're not participating in a scheme to get the sellers off the hook by purchasing their house for half of what they owe and then giving it back to them. We also had to give their bank our account numbers, social security #, amount of money we had in the bank, etc... Our agent had never heard of that but in talking to other agents she found out that's pretty common with short sales now. I don't remember how long we were in the process when we had to fill that out but it seems like things must be progressing if they're asking for more documentation. Good luck!

LoveKiss · June 2012

When we were in short sale purgatory we had to do the arms length transaction affadivits (which stated that we were not friends/relatives/business partners of the seller, that we would be occupying the property as our primary residence, that we would not re-sell the property to the current owners or in any other way allow them to occupy the property, and that we had no affiliation with the approving bank) and get them notarized at the very beginning of the process so that the package could be submitted to the bank's short sale system. That was a very early step in our process.

Has BOA ordered the BPO yet?

R.Wilsonny · June 2012

LoveKiss:

When we were in short sale purgatory we had to do the arms length transaction affadivits (which stated that we were not friends/relatives/business partners of the seller, that we would be occupying the property as our primary residence, that we would not re-sell the property to the current owners or in any other way allow them to occupy the property, and that we had no affiliation with the approving bank) and get them notarized at the very beginning of the process so that the package could be submitted to the bank's short sale system. That was a very early step in our process.

Has BOA ordered the BPO yet?

Speaking of BPO, can you take a look at the thread I just posted about BPO's.....you'll understand why when you read it...just curious if you have ever heard of this happening....tia

BriarRose84 · June 2012

OUr realtor has been trying to find out if the BPO has been ordered. The seller's agent isn't very good with giving us updates. Our relator is supposed to be asking for another update tomorrow so hopefully we will actually get one.

I did see your post and our realtor actually warned us about this happening with the house we are under contract for. From what I understand, they compare the house to other houses and base their appraisal off of that. There must be some comparable houses in the area that are priced lower. I don't think the bank would really have any idea if there was something wrong with the house.

rubyredlucy · June 2012

Here's our basic timeline:

- late Feb- offered and were accepted by the sellers

- late March- signed the arm's length

- late April- resigned arm's length (the bank redid the format of the forms apparently), BPO was done around that same time

- two weeks ago- offer accepted!

Hope yours works out, too.

katharine25 · June 2012

We bought a BOA foreclosure, not a short sell, so they wanted to unload ASAP. Have little advise for you, but good luck trying to deal with BOA. We were closed in 2 months. I needed a 3 day extension (did a Reno loan = ie TONS of leg and paper work on my behalf) and they were absolute biotches about given me an extension. Make sure the lender you are dealing with is amenable and somewhat flexible, I would have lost the house if my bank wasnt willing to make a tiny execption to the rules.

Question concerning short sales

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