Short Sale Nightmare

[Kelcie Grabill]

Purchasing my first home and it happens to be a short sale. I'm trying to decide if it is still worth my time or if I should start finding a new home.

One lender: Cenlar (no 2nd) FHA Loan

Offer was put in on March 3rd, accepted by seller March 4th. There was roughly a 30 day delay from when the offer was put in until the seller submitted the short sale package to the lender. Cenlar received the package April 3. Everything seemed to be on track. By April 20th, we were told that the file is now on the final negotiator's desk. Then told that since the seller's middle credit score is 640, she was required to complete a loan modification (they claimed anything over 620 requires a variance). Was told everyone thinks its ridiculous since she is elderly and in a care facility and the variance should be easy to get sonce seller has documented health issues. May 5, was told Cenlar acknowledges seller's health issues. Did not hear a thing until June 3rd. Negotiator had been unresponsive. He says he is still working with the FHA regarding the variances. He said he has submitted a new variance to FHA that day and should hear something next week. Said our offer was excellent and approvable as soon as FHA agreed to the variances.File was escalated on June 5.

Have hear nothing until today (June 23). Case has been moved to supervisor's desk, surprise they are out until next Monday. 

Is there anything that can be done to speed this up?

How long does FHA usually take, I'm tempted to contact them myself.

Am I crazy for thinking this is ridiculous? 

Anyone who has comments or suggestions please let me know your thoughts. They are appreciated. Thank you!

[Mindy Jensen]

Short sales take as long as the bank feels like taking. I have not heard of anything that will make them speed up their process. Full price offers, over asking offers, nothing speeds them up. 

Are you in a hurry to be out of your current property, or are you just fed up with the process? A good real estate agent who is well versed in short sales should have told you this would take as long as it takes. I know many people who start down the short sale road and give up because it seems to take forever. The banks just don't feel any sense of urgency, which is too bad.

If you can wait, and it is a good deal, I would recommend at least doubling their timeline. You can get a fast short sale close, I suppose, but I have never heard of one happening before. Sorry this isn't a more positive response...