Slo-mo
More like "No-mo"
1 June 2010. Back in March when I decided to make an offer on a new house, I expected to need patience. I didn't realize I'd need to enter a state of suspended animation.
- March 20, 2010
- Made offer on house
- March 24, 2010
- Revised offer to accommodate BofA requests: extended close from 45 days to 90 days; changed escrow company to one preferred by BofA
- April 30, 2010
- BofA told seller's agent that deal would be approved "within 72 hours"
- June 1, 2010
- Still no word
Withdrawn after 87 days
To recap: The house is a short-sale, meaning that it is being sold for less than the balance on the existing mortgage. Before a house can be sold short, the holder of the existing mortgage has to approve the sale (after all, they're taking a loss). The holder of the existing mortgage in this case is Bank of America.
It is generally accepted that short sales take "a long time." Realtors commenting on how long short sales take estimate the time anywhere from 6 to 8 weeks on up to 7 months or more.
Mind, BofA has supposedly put in a new "fast-track" system for dealing with offers! If this is the fast track, I shudder to imagine the not-fast track!
Why does it take so long? "They" say...
- Banks are in the money-lending business, not real-estate
- Banks are overwhelmed by the sheer number of mortgage defaults
- Banks are not getting good support from their Asset Management departments and from title companies
- Insurance companies are running out of money to cover the banks' losses
All those things may be true. But if I'm a bank and find myself managing defaulted and foreclosed mortgages, what I would want to do is get the hell out of that business ASAP. Instead of dragging my feet I'd be looking for ways to clear the books of all these bad mortgages. I guess that's why I'm not a banker.
It's not that there are not people out there willing and able to buy these houses. My original offer, indeed, was to pay all cash and close within 45 days. And the amount I offered is exactly what the bank has said is its bottom line. Makes no sense.
I suppose the banks could be engaged in wishful thinking: If we dilly-dally long enough the market will recover and we won't lose so much. Pigs could also take flight.
The simple truth is that when it comes to short-sales, banks can do whatever they damned well please.
Meanwhile, I sit and wait. And wait.