Detroit Real Estate

Here is a Metro Detroit short sale question I got today via email.

We are still waiting on closing on a Canton short sale home since 12/09. The owners have agreed & signed since 1/10 and it says pending on the web site. Our Michigan realtor says the house is ours and the sale is just pending the bank (who hasn't signed yet). I've been told you need to patient with short sales (& it isn't easy!), but I've also read that the bank can also still say "no" and go to foreclosure. We've looked at other houses - but we favor this one. Are we foolish to keep waiting and should we think about putting a bid on another house (NOT a short sale)? Thank you

This was my response

I always tell my metro Detroit home buyers to keep looking.  It is very possible that your short sale can fall apart.  It is common for a short sale to take 4 to 6 months.  The longer it goes the more nervous I become as a Realtor. 

Here are some of the items that can hold up or stop a short sale.   

• Has the bank ordered their own appraisal or BPO been ordered?  Has it been completed? 
• Is the house in foreclosure? 
• Has the bank assigned negotiator to handle the case?
• Has the seller submitted a COMPLETED short sale packet?
• Is the seller still being cooperative?
• Has the sheriff sale been done?
• How far away is the redemntion period date?
• Are there any liens other than the 1st mortgage? Is there a second mortgage? If so, have the been settled?
• Has the other agent done short sales?Most importantly: What is left to be done before the bank signs off?

The seller can become uncooperative with the bank, there may be multiple mortgages, the 2nd mortgage company can say no.  There are so many variables.  To say the house is yours?......It's not a done deal until the banks say so.  Just don't get hung up on the one house and keep looking.

So my opinion is yes you should be thinking about putting a bid on another house.  Not another short sale!  If you have another short sale question email me at yesmyrealtor@gmail.com

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