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Anne Stoddard, Real Estate Pro in Pinetop, AZ

What is the average wait for the response on a short sale in the Phoenx area?

Asked by Anne Stoddard, Pinetop, AZ Thu Mar 27, 2008

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Anne, this varies greatly depending on which bank has the loan for the seller, and whether the listing agent has all their ducks in a row at the time an offer comes in. Dave sounds like he's got his ducks in a row, so buyers aren't waiting on him and his clients to get the obvious things done.

Still, some banks can be extremely slow. I'm working with Countrywide on a home that I'll be lucky to get a response in 5 weeks. On another one, I'm working with Chase, and they are much quicker. The difference in response time for the Chase loan is because Chase is the underlying investor, servicing their own loan, while Countrywide is really a middle-man, servicing a loan for a different investor. That middle-man status means Countrywide really doesn't have much vested interest in expediting the process.
0 votes Thank Flag Link Thu Mar 27, 2008
Dont hold your breath....depends on the expertise of the listing agent basically. Some never get back to you and some take 2 months. 2 months is best case.
0 votes Thank Flag Link Thu Jul 23, 2009
that answer depends on the lender and the more credible your offer is. some lenders will approve a short sale in a single day while others take as long as 6 months.
0 votes Thank Flag Link Sun Oct 26, 2008
You are stuck in REO nightmare.... See my copy/paste answer to this very common problem.

FORECLOSURE REALITY CHECK…. The only “sellers market” in america is the foreclosure market. Don’t expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced “at market”.

The REO manager has a short list of “cash/close in 2 day buyers”, they always get the first right to bid. Then they have to wait for the “public auction” Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the “first timers” who continue to drive up the bid when they don’t hear anything from the bank. Every time I see the “how come I haven’t heard from the bank about accepting my foreclosure bid after 30+ days” on trulia, I have to let out a chuckle because he’s so right. For those newbies, this is real. They know that when you don’t hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that…. So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. A good realtor will drop an 80% offer on a property and get one accepted.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don’t be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says “my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?” I always get responses, better prices and positive energy into the home.
0 votes Thank Flag Link Sun Mar 30, 2008
To Alberto,

You must follow up, daily. The trick here is to be polite, build rapport and get the assigned rep on your side, working with you. They get too many calls from too many angry people... Don't be one of those angry inconsiderate people and things will happen. Cop an attitude and your file will make it to the bottom.

Also, more than one lender told us they are sol backed up that they are only working files going to foreclosure tomorrow, meaning they will extend the foreclosure the day before as those are the files with priority.
0 votes Thank Flag Link Fri Mar 28, 2008
I'm not sure if someone said this, but I will add that, if there is only one mortgage, then the process can materialize more quickly as well. Much of the time involved seems to be created by the first mortgage and the second mortgage haggling over how much the second mortgage is going to get paid, and it is usually not very much. That's just my two cents. Hope that helps.

Ben Bailey
Windermere West Valley
http://www.ArizonaPremiereLiving.com
480/220-8022
0 votes Thank Flag Link Thu Mar 27, 2008
HI IM IN NY AND I AGREE WITH THE PREVIOUS ASSOCIATE. IT COULD TAKE UPTO 2 MONTHS OR LONGER, BUT HEY I HAVE ANOTHER QUESTIONS THAT POPS UP! CAN YOU CALL AND FOLLOW UP OR WILL YOU BE ANNOYING THE REP ASSIGNED TO THE LOAN?
HOPE THIS ENLIGHTENS YOU AND GOOD LUCK.
0 votes Thank Flag Link Thu Mar 27, 2008
hi Anne, Im in Calif. but I am pretty sure that it dosen't matter what state you are in, response times are the same. like others here I have found it really depends on the lender. I had one with wilshire it took over two months just to get a response! on my short sale listings I let agents know to prepare their buyers that it could take up to 60 days or more for bank approval, that way the buyer is prepared. Hope this helps
leanne
0 votes Thank Flag Link Thu Mar 27, 2008
Anne,
Like Steve said, varies, depending on the bank.
It is importan to have all the docs ready.
Listing agreement, Short sale to the listing agreement and the others that go along with that,
As soon as we take the listing we try to talk to the banks, some already have a short sale package, and moves pretty quickly. However sometimes is not that way, even if we have all the docs, we have to wait for the bank to approved,
Web Reference: http://ownyourhomeaz.com
0 votes Thank Flag Link Thu Mar 27, 2008
When working with sellers, we are averaging about 3 weeks, but I have 3 listing agents on my team and they maintain constant communication with the lenders and sellers.

When working with buyers, it is all over the board. Short sales are still fairly new for some agents. It is through constant efforts that we are seeing results.

We also listed and closed one in 3.5 weeks, total time, so it can be done.
0 votes Thank Flag Link Thu Mar 27, 2008
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