What is the bank/mortgage owner trying to accomplish here?

[Brandon Conway]

I am looking for a primary residence for myself with an eye on not selling it when I move to a nicer place/life circumstances change (job, marriage, etc). I am trying to purchase a 3bd/2ba that typically rents for $1400 to $1100 around the area, however there are no comparable single family rentals on the market in the particular neighborhood (within 2 miles).

The property was listed on MLS as a short sale. I saw the property and offered $600 more than the listing price in early September. I am satisfied it is a good enough of a deal to own for a rental and a nice enough property for me to live in for the next few years. I also heard from the sellers agent that the sellers had discussed prices that would be acceptable for their short sale by their lender.

My offer was only contingent on an inspection and financing with a closing date six weeks from the date I submitted the offer. The sellers accepted the offer just days after it was presented to them. Then we were waiting on what we thought was the bank’s approval. My agent and I finally find out the sellers redemption period ends on December 10th.

TEN WEEKS! Ten weeks go by and there is little progress from the sellers lender. I have financing lined up and pending final approval on my end I just need the signed purchase agreement from the seller and their lender. I finally hear from their lender on November 23rd. Great! Let’s roll with this thing…Not so fast! Their lender wants to close on Dec 3rd, 7 business days from when we get word the short sale has been approved and 7 full days before the sellers redemption period ends.

My agent is attempting to get the closing date moved back to something more doable like the 8th of Dec, but thus far have been countered with the 6th, but that only buys us one business day. At this point I have told my agent that we either hear by noon tomorrow (November 30) that the closing date is the 8th of December or later or the deal will fall through as a short sale. (My strategy is to pursue the property as a REO at that time for a reduced price.) My agent has also discovered that the lender that holds the sellers mortgage is an investor or investors, not entirely sure which situation or the structure of their deals etc.

What is the rationale for setting a closing date so quickly on the heels of the short sale approval and so far in front of the redemption period? The sellers are eager to get the deal done, it is the sellers lender that appears to be killing the deal. If that is the case why be open to moving the closing date from the 3rd to the 6th and not the 8th or 9th?

What other strategies might the lender/investor(s) be trying here for their gain?

PS. During the time this offer has been in the works there was a property across the street with a similar structure and I assume a similar floor plan inside, (though it does have an extra 200 sqft) sold for the exact same price the seller and I have agreed to.