Short Sale . . . Long Odds

Short Sale Multiple Choice

My client made an offer November 17 on a South Minneapolis short sale (the lender(s) must agree to accept less than the outstanding mortgage balance). When did he hear back from the listing agent (representing the Seller)?

a. November 29
b. December 3
c. December 21
d. January 23

Answer: none of the above.

Incredibly, my client is now approaching three months without a response to his offer. Buyers who've made offers typically start twisting after 24 hours without hearing back; imagine waiting indefinitely.

What's going on?

According to the listing agent, not all of the lenders have agreed to the short sale (apparently, there are more than a dozen who each have a slice). In addition, so much time has now elapsed that the lender(s) are asking for updated financial information from the owner, documenting his inability to make good on the entire mortgage.

What's next? Two-thirds of the time, short sales don't pan out for precisely these kinds of reasons, and the property proceeds to foreclosure.