With a short sale and the new rules in effect, what happens if a bank doesn't respond within 60 days?My husband and I recently had a short sale fall through. The initial asking price was $219k and subsequently went down to $129k after listing at $199k and $169k. We made an offer at the price of $129k after a previous offer fell through at the same price. A week after the 60 days, the bank said the valuation was at... |
Is it conventional loan or a FHA or VA loan.
If it is a conventional FannieMae or Freddie Mac loan effective November 1, 2012 brand new Federal Housing Finance Agency (FHFA) are in place. The new guidelines state that the lender is required to acknowledge receiving the short sale package and then must give an answer within 60 days from receiving it.
The FHFA has also eased the "hardship requirements" to do a short sale. The lenders now have to give a short sale if these requirements are met by the buyer.
Since these new requirements don't come into effect until next week I would have the seller re-submit your short sale offer after November 1. The listing agent should not have stated that he would accept back-up offers only. That should occur only when both the seller and the lender accepts you offer unless the lender told him not to, which is unlikely.
I believe the only states with short sale laws are California, Nevada and Florida.
None of the laws say the bank has to respond in a specific time period nor the bank is required to accept a specific offer amount.
