We have now heard of buyers who were poised to settle on their "short sale" purchase only to discover that one of the existing loans had been sold (don't ask me who would want to buy it?) and the process started all over again! Go figure!

No one really knows what a short sale is like until you attempt to go through one. My client made an offer on a short sale property April 13th, 2008! We were told by the lisiting agent that the process would take up to 90 days and we are now at 4 months still waiting for lender approval! Countrywide has an intermediary management level that has been put into place and the contract has been in their hands since June 30th! The listing agent wasn't even aware of this and thought all along that the negotiator had the file. We were told that we couldn't expedite the process and when the negotiator receives it we'll have to wait an additional 30 days! And what's so scary is the lender may not even approve of the short sale and the contract offer!
My clients have been waiting patiently, but they are at their breaking point! They have just sold their home and now have to contemplate moving in with family. As soon as we find another home we will gladly void the "short sale contract"! Again, here is another example why you should stay away from "short sales". We get the same "song and dance" that the bank is overwhelmed and the process take time! Obviously, the bank has it's own time table and feels that the purchasers have all the time in the world to wait!

I GOT INVOLVED IN A SHORT SALE AS THE BUYER. MY LENDER IS DRAGING HIS FEET ON THE SALE. IT IS A FORCLOSURE HOME THAT I GOT A GREAT OFFER. WE ARE GOING ON 3 MONTHS OF WAITING BUT FOR THE PRICE AND CONDITION OF THE BANK OWNED HOME I AM WILLING TO WAIT. MY QUESTION IS NOW THAT I PAID FOR THE APPRAISAL, PAST MY WITHDRAWL DEADLINE, & HOME INSPECTION OUT OF MY POCKET AT THE DIRECTION OF MY LENDER "WHO WILL PAY MY $1200 BACK TO ME IF THE LENDER BACKS OUT? I AM NOT WILLING TO LOSE THIS MONEY LIGHTLY. DO I HAVE ANY WAY TO HOLD THEM ACCOUNTABLE. huh

In most foreclosure / short sale circumstances, the contracts contain clauses that specifically state that the bank or asset manager are not at risk for any "out of pocket" costs you incur, such as appraisals and inspections. I realize that this doesn't help you case much, but we generally recommend that you do not "start the contractual clock" on any of the contingency clause (ie. inspections) until the contract is fully ratified and enforceable by the bank or assest manager so that you don't have to risk the money on the inspection. Short sale contracts have a very high failure rate. Hope this answers the question, but if not, let me know and I will make another attempt. Joe