Another Bank of America FHA Short Sale
You can tell me the buyer is canceling the short sale, and when I’m looking out on this view, I’m only half as annoyed as I normally would be. This is the view from my balcony at the St. Regis in Bora Bora. They put up the orange cones to keep the drunken jet ski drivers from running over naked swimmers. Not that it does any good. When jet skiers get disoriented, there is no telling where they might end up. Just like buyers of short sales. Hard to say. They start out saying they want to buy a short sale but then when approval arrives, lots of them tend to freak out.
As though it’s all fun and games while they are waiting for short sale approval. They can run around and boast to friends: “Look at me, I am buying a short sale. Hey, I have a lampshade on my head.” But when it comes time to put pedal to the metal, some of them just can’t do it. Is it because they’ve had too long to think about it? In a regular escrow, they would be closed within 30 to 45 days, not sitting in limbo waiting for short sale approval. Is it because they forgot they were in escrow? It’s not like there is constant activity that they can see, unless they follow updates on my website.
In one escrow, the dreaded Bank of America FHA short sale escrow, we’ve been working on the file since April. That’s not unusual for a Bank of America FHA short sale. It’s par for the course. Other lenders can process FHA short sales in a normal time period, but that has not been the case with Bank of America. We closed 2 or 3 other B of A FHA short sales recently, and each was almost a year-long process. Because getting the approval from HUD is difficult for B of A. And by the time the bank analyzes the offer, another 4 months have passed and the ATP has expired. So, they start over. Those falling over “for sale” signs in people’s yards are due more to the lengthy process for a Bank of America FHA short sale than from buyers canceling.
Fortunately, Bank of America is moving its FHA short sales to Equator shortly. We hope this happens by its target date of February. It will be a joyful day to celebrate when that happens.
But in this particular Bank of America FHA short sale that we’ve been working on since April and just received approval on 5 days ago — well, the buyer up and canceled yesterday. The agent says it was due to the “whole house inspection” as though we need some kind of excuse. We don’t need no stinkin’ excuse. Just send the cancellation and muddle on with your life. We will sell this home again, and this time to a serious buyer. Or, so this Sacramento short sale agent continues to hope.