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Cc Rider, Home Owner in Charlotte, NC

what is the average time to close on a short sale?

Asked by Cc Rider, Charlotte, NC Mon Aug 29, 2011

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from the time I have an offer on a short sale till the day of closing, an average is 3-4 months. If the mortgage company the seller has is Bank of America, it is more like 4-6 months.
0 votes Thank Flag Link Sat Sep 3, 2011
cc,

There is no definitive answer on when a short sale will close.....It depends on the banks and when there is an offer accepted.....each bank has a different process and different time frame on how the process the short sale.... I have worked with some banks that have gone as quickly as 45 days and other banks have gone as long as 6 months and some never get done.......
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Tue Aug 30, 2011
You're asking from the time one has an offer accepted by the seller but waiting for short sale approval, right?

It depends on who the lender is
how many loans/liens
how cooperative the seller is in producing required documents in a timely manner
how much the offer is --- too low ball? not enough to be seriously considered by the bank invest
how well the listing agent follows up (experienced agent makes a huge difference)

If the bank is Wachovia, hallelujah! They close like regular sale.
If it's Bank of America or Chase, for example, God help you.
0 votes Thank Flag Link Mon Aug 29, 2011
We generally prepare our buyer clients to expect a response from the bank in 6 weeks to 6 months, with a closing about 30 to 40 days after approval.
0 votes Thank Flag Link Mon Aug 29, 2011
Unfortunately there really isn't an average. I've seen them go 3 months, I've also seen short sales get foreclosed on -- even after the seller accepted the offer and submitted it to the bank, to one I've been working on for a buyer client for a year now and it's still not approved yet. The length of time it takes will depend on so many different factors, for example: (1) how many banks are involved? The more involved, generally will take longer. (2) Is there an HOA involved and do they need to get paid off? (3) Has the seller continued to pay property taxes? I've seen some sellers stop paying their taxes and the buyers end up having to pay them off just to purchase the property. (4) Have the buyers backed out? Because they take so long, buyers sometimes find something else that fits their fancy and go with that one. Buyer backs out = new buyer has to be found, and that new offer needs to get resubmitted and the entire process starts again. (5) Seller's slow to get requested financial docs back to the banks. I've seen this happen too.

There are so many factors that will determine how long short sales take, but two things you'll need if you're involved in the short sale: patience and flexibility! Good luck, Caroline
0 votes Thank Flag Link Mon Aug 29, 2011
The process can be frustrating for everyone involved - but try to get a commitment from the listing agent to provide status at least weekly. You can expect it to take at least 3 months - 4 is about average. It also depends on how many loans the borrower has, how many banks are involved and how experienced the agent is who is working closely with the bank. So asking questions before writing a contract on a property can be helpful to understand what is involved and how long it may take. Request regular status updates. Good luck.
0 votes Thank Flag Link Mon Aug 29, 2011
There is no set average, right now short sales are taking less than they were even a year ago. A great short sale can take 8-10 weeks, a good or average short sale takes 10-12 weeks, anything longer than 4 months is a hard sale and none should take mor ethan 6 months, the key is making sure you have an agent well expereinced with short sales, do not look at titles that are bought on line.... AND the agent should hire an experienced negotiator working for the seller with the banks negotiator.

http://www.trulia.com/blog/scott_godzyk/2010/06/how_to_get_a…

For a full list of tips on how to sell your house trhough a short sale, please see my blog.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Aug 29, 2011
Once the Contract is signed, we normally see a 45 day Escrow, although it can be 60 days:

But that isn't relly what you are asking.

From the time the Offer is submitted to the Bank, until the Bank responds, is normally 3 months to a year:
Yes, you cannot make an average out of that.

For this reason; we cation Buyers to be prepared for a long wait; and I mean looooooong!

When get many questions from Buyers who have run out of patience; they want to move on, but are affraid of losing the house. They are blaming their Agent for the lack of communication. They are frustrated.
They should never have entering into the deal!
0 votes Thank Flag Link Mon Aug 29, 2011
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