I am in the process of buying a property that is a short sale right now.
I have never seen so much incompetence as I have seen in the lender's short sale department.
I recommend that you hire a real estate attorney and ask for an extension of time.
The people that the bank hires to work in the short sale departments and the bank owned property departments have no clue what they are doing.
Most of the kids in these departments are just hired off the street with little or no experience or training.
I woluld give myself at least 45 days to close because FHA is a government agency and like all government agencies FHA is notorious for being very slow.
I recommend that you have the assistance of a real estate attorney to negotiate this for you.
I also recommend that you have your attorney include language that permits you to do inspections and conduct your own appraisal in addition to the appraisal that is done by the lender.
I have found that most lender hired real estate appraisers are merely "rubber stamps" the appraisal seems to come back at exactly the price offered. How can this be.?
I know that I am not that smart that I can make an offer that is exactly the value of the property. I usually offer too much because I like the property.
That is why I hire my own appraiser as a second opinion.
My own appraiser almost always comes up with a value that is less than I offered on the property.
In many cases my appraiser comes up with a value that is much less than I offered even though the lender's appraiser said that the value of the property is exactly what I offered.
Make certain that your attorney includes language in your offer that the seller is to reduce the contract price to the price determined by your appraiser, not the lender's appraiser.
I also recommend that you hire an Appraiser that was trained by the Appraisal Institute and has the MAI (Member of the Appraisal Institute )designation.
The Appraisal Institute is the most rigorous of all of the different appraisal organizations out there.
I have found that the MAI appraisers are the best. The have saved me enormous amounts of money. Far more than their fees and they have protected me from paying too much for property that I have purchased.
I recommend that you look through the Yellow Pages of your telephone book in the section for appraisers for the section that lists the real estate appraiser who are MAI real estate appraisers.
I would give several of them a call and find out which ones will do a residential appraisal. Many MAI appraisers only do commercial appraisals but some will do residential appraisals.
Tell the appraiser that you are concerned that you might offer too much for the property. Therefore you want to hire him as a second opinion to protect your interests.
Also point out to the appraiser that you are concerned that many of the lender's appraisers tend to be "rubber stamps" and put the value of their appraisal at exactly what you offered.
If the property is worth less than you offered you want to know that. Let the appraiser know that your attorney has put language in the contract that requires the seller to reduce his contract price to the value as determined by the appraiser that you are hiring, not the value as determined by the lender's appraiser or the bank's broker price opinion.
These lenders have someone usually a realtively inexperienced real estate broker give them a number that the real estate broker says the property is worth.
That number is usually a bunch of baloney. That number is usually way too high. I may make an offer at that number because I do not know any more than the real estate broker that gave the bank his estimate of value.
That is another reason why I have my attorney put in language that the seller and in this case the lender is to reduce the contract price to the value as determined by my appraiser, not the lender's appraiser or the broker price opinion. .
If more buyers had followed the recommendations that I have outlined for you we would not have anywhere near as many of these over priced homes that buyers paid way too much for, that are now in foreclosure.
My experience as a real estate investor and my experience attempting to purchase some short sale properties.
· 1 decade ago