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Steven Diaz, Renter in Phoenix, AZ

Does anyone know how long its taking banks to respond to offers on short sale homes?

Asked by Steven Diaz, Phoenix, AZ Tue Jul 5, 2011

I have been looking for a home but i keep hearing goods and bads on short sales. Im being told that seller owned is the way to go but theres either nothing out there or when there is there is an offer on the home within the hour of it being listed. Im also running into sellers not wanting to deal with me because im using VA as my mortgage loan type. What gives? How much more sure of a loan can you get than that?

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12
Depending on the bank it could take 30 days to a year.
6 votes Thank Flag Link Thu Oct 18, 2012
this is not a BLOG - no replies are required and you don't get extra points for them!!
Flag Fri Jun 14, 2013
Using a experienced realtor can save you time and money.
Flag Wed Oct 31, 2012
We bought one and it did not take as long as we thought. When the bank came back with an answer they wanted to close right away, which was annoying. But we closed!
Flag Sat Oct 20, 2012
I read good stories and back stories about short sale.I guess it takes time if you get a good deal.
Flag Sat Oct 20, 2012
Deal with a experienced professional.
Flag Thu Oct 18, 2012
Depends on Bank. Call us direct. We can help.
2 votes Thank Flag Link Thu Nov 15, 2012
"Loaded Question", yet an EXCELLENT one. Many times, the turn around time on the bank(s) response to a sellers short sale package depends on many factors. Often it's the accuracy of the paperwork. Many short sale lenders have better or worse systems in place, thus making sure one follows or knows the ins and outs, is another reason why some short sales take longer or get done quicker. Your agent should be able to give you a "ball-park" as to what will be a +/- time frame from start to finish, if everyone is working together to accomplish the transaction.

I hope that helps.

-Shawn
0 votes Thank Flag Link Tue Aug 14, 2012
"Loaded Question", yet an EXCELLENT one. Many times, the turn around time on the bank(s) response to a sellers short sale package depends on many factors. Often it's the accuracy of the paperwork. Many short sale lenders have better or worse systems in place, thus making sure one follows or knows the ins and outs, is another reason why some short sales take longer or get done quicker. Your agent should be able to give you a "ball-park" as to what will be a +/- time frame from start to finish, if everyone is working together to accomplish the transaction.

I hope that helps.

-Shawn
0 votes Thank Flag Link Tue Aug 14, 2012
Thanks for your question about how long the process takes to purchase a home through a short sale. It depends on a number of factors. The factors that affect the length of the short sale process are: The lender because it requires lender approval and each lender has their own process; The amount of cash offered because banks want to collect as much cash as possible since the market is still dropping; And the agent because there are a lot of additional documentation requirements for short sales. These are just a few of the things that you have to think about when purchasing a home through a short sale.
0 votes Thank Flag Link Wed Jul 6, 2011
Good Morning,
As a short sale listing Agent, our short sales average 30 to 60 days to obtain bank approval, a few have been less, and a few 60+ days, but not much over. The Seller's listing Agent must have the knowledge and skills to represent a short sale listing - if they do not - who knows. The listing Agent is the link between the Seller and the Seller's Lender - of major importance they have the skills and knowledge to communicate, supply the proper documents and recognize the time constraints to file these documents with the Seller's Lender. As a Buyer's Agent of a short sale listing, they should call and qualify the listing Agent before making an offer on a short sale listing or even having their Buyer view the home - a knowledgeable listing Agent should expect these qualifying calls & be very cooperative.
Patience is a must, for all parties involved. The boom in the mid 90s and again in the mid 2000s, many Buyers had new homes built for them - they waited for their home. The majority of short sale listings are beautiful, well maintained homes and if the Seller qualifies for a short sale - the process should be smooth and worth the wait.
We have represented many Sellers in short sales, and also Buyers - all have closed escrow.
Good Luck and happy house shopping!
Kind Regards,
Terry Parrish, Associate Broker
West USA Realty
0 votes Thank Flag Link Wed Jul 6, 2011
I agree that you should be wary when going into a short sale. Just make sure that you have an informed agent representing you. They should have all the question to pre qualify a home before you go view the property. If you have a good agent and they have done their research on the property you should be able to remove the homes who are being sold in a short sale with agents who do not have experience in short sales. Short sales get a bad reputation due to the agents not knowing what they are doing or the sellers not actually being qualified for a short sale.
0 votes Thank Flag Link Tue Jul 5, 2011
Sorry to disagree, Landon, but short sales are indeed a 'gamble'. On average, less than 1 in 7 ever make it to a successful approval and closing. If you don't call that a gamble, then I'd like to visit your favorite casino.

Steven be VERY wary, aware and informed before you enter into a short sale transaction.
0 votes Thank Flag Link Tue Jul 5, 2011
It has nothing to do with a gamble when it comes to short sales. If the seller has a good agent that knows what they are doing when it comes to a short sale it can be a smooth process. The agent just has to have a complete short sale packet put together completely and know how to deal with the banks. A lot of short sales will say if the seller is working with a CDPE(certified distressed property expert0. This will help in the transaction greatly. I have submitted a short sale packet and had a response in a week. It has nothing to do with gambling it comes down to the agent knowing what they are doing.
Web Reference: http://www.cdpe.com/
0 votes Thank Flag Link Tue Jul 5, 2011
Regarding response times on short sales, you can expect 3-18 months. If you don't like those odds, there are some great casinos here as well as in Las Vegas. If you'd like to save yourself a world of hurt and heartache, then stay away from short sale properties.
0 votes Thank Flag Link Tue Jul 5, 2011
Also when it comes to a VA loan there are some issues that potential sellers have with the type of loan. The appraisals are very strict, and also the are certain fees that the person getting a VA loan can not pay. Some investors do not like to deal with a VA loan due to the fact that they need to cover these costs which lessens their net. If they raise the purchase price with a VA loan and it does not appraise then you are back to square one. If you would like me to explain the short sale process and a VA loan in detail please give me a call 480.707.1195 or you can email me at landonparciero@gmail.com.
0 votes Thank Flag Link Tue Jul 5, 2011
It depends on the bank on how long it takes for a short sale. Some banks take longer than others and there are many different factors in a short sale. If the seller has submitted the short sale package then it will be less time but if there has been nothing submitted to the bank you are probably looking at 3 months plus.
0 votes Thank Flag Link Tue Jul 5, 2011
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