Foreclosure in Chicago>Question Details

Meyerish, Home Buyer in Chicago, IL

how long can the bank take to decide on offers for short sales?

Asked by Meyerish, Chicago, IL Tue Aug 23, 2011

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15
Hi Meyerish,

As you can see from all the answers it really does vary.

As a "norm", not that there really is a norm, you can count on 60 - 120 days average. I've had the short approved in as little as 2/weeks, that was most def a fluke! By the same token I've experienced a 6/month wait.

Short sales are not for everyone and the impatient. You need to go in knowing that you may wait up to 6/months possibly longer. That being said if the property is what you're looking for and you're getting a good deal then it's worth the wait.

Good luck!

P.S. Make sure you work with a buyers agent that has experience in this type of transaction.
0 votes Thank Flag Link Thu Aug 25, 2011
Hi Meyerish,

I had a buyer for a short sale and it took a year. So the question to ask is for those realtors who have done short sales, How long did it take? I've heard that some can be quick and some can be lengthy. If you decide to purchase a property that is a short sale be prepared to go the long term or for the deal in the end to not go through. I would suggest that you ask who are the seller's lenders and if they have more than one loan on the property. More than one loan means more than one bank must agree to participate in the short sale.

Terry
0 votes Thank Flag Link Wed Aug 24, 2011
It depends on the bank and how many loans, There is no set time limit. If you have a lot of time on your hands and a lot of patience, a short sale could be a good buy for you. But if you dont, I wouldnt even bother. Figure at least 90 days.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Tue Aug 23, 2011
Short sale is just waste of your time. A large portion of short sales end up with the bank asking for much more than your offer, killing the deal. Many of listed price for short sale is just a figure made up by listing offer and not realistic. Therefore, after a long delay, the bank will not accept the offer.
A better choice is a foreclosed property, when the bank is serious about selling.
Wishing you good luck
0 votes Thank Flag Link Tue Aug 23, 2011
The goal is around 90 days from contract to close, although the lender(s) can take as long as they need. Short sales in the hafa program or ones that were previously approved for a buyer who could not close can usually get (re)approved within a week for a new buyer as long as the file is active with the bank negotiator. There are some great short sale deals out there for those that can wait and the property condition at sale is substantially better than buying a foreclosed home that can have serious issues from being vacant for an extended period of time.
0 votes Thank Flag Link Tue Aug 23, 2011
Hello Meyerish,
The banks are overwhelmed with short sales and foreclosures. Your offer goes on the bottom of the stack of paperwork at the bank. You will hear from the bank when your offer reaches the top of the pile.
This could take many months to find out if the bank is even willing to accept your offer, counter it, or reject it outright.
If there is more than one lender involved then the time frame will take much longer.
Short sales can be very frustrating so you have to have the patience and stamina to wait it out if you truly wish to purchase the property.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue Aug 23, 2011
They can take as long as they want. The only question is how long the home buyer has allotted in the contract/addendum and how many times they extend it.
0 votes Thank Flag Link Tue Aug 23, 2011
There is no rhyme or reason to the Bank or Asset Managers time frame. This could be a long wait...........
0 votes Thank Flag Link Tue Aug 23, 2011
it can take 6 months or it can take 2 weeks- there is nothing that the bank owes to anyone in a short sale.. they controll the negotiations and time and everything..deals have a cost and this is it.
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Tue Aug 23, 2011
The problem is that some agents mislead the sellers by saying that they are certified short sale agent which the truth is that don't make you an expert if you are a seller you should deal a short sale attorney that only do short sales It's free to the seller. But to answer the question typically it takes 90 days and can drag on sometimes for a year so if you are a buyer be patient and if you are a seller make sure you choose an agent who will connect you with the right people who can get the job done and not someone who claims to be superman when in fact these days not to many people can truly guarantee anything involving real estate.
Parrie Perkins
Century 21 ProTeam
7734192078 cell#
0 votes Thank Flag Link Tue Aug 23, 2011
This is a VERY GOOD question. It really depends on how many loans there are and who the bank is that holds those liens, and lastly the type of loan that it is. Bank of America is starting to move a little quicker now with the EQUATOR system, but the timeframe is not something that can be gauged. It could be 3 months, 6 months or even sometimes 9 months from the time an offer comes in and is submitted to the bank.

Feel free to contact me if you have any other questions. I have successfully completed numerous short sales in both California and Illinois.
0 votes Thank Flag Link Tue Aug 23, 2011
In this market it seems to take 2-5 months depending on the bank and if there is just one or two lien holders. BOA and Wells seem to be be the slowest and some of the smaller local banks tend to be faster.
0 votes Thank Flag Link Tue Aug 23, 2011
Meyerish,

True, it could take 6 months to get an approval. that being said most banks have clued into the process, BOA has clued into is so much they are laying people off...kind of sucks for those 3000+ people. I would suggest 2 months is standard time frame.

http://www.house-guy.com/index.cfm/Short_Sales

we close hundreds of short sales are work with agents in CHI-Town if you know of any seller in trouble. :) Originaly from the western suburbs of Chi-ca-go. cheers
0 votes Thank Flag Link Tue Aug 23, 2011
Hi Meyerish,

There is no time limit - unfortunately.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Aug 23, 2011
I've had them take as long as 4 months. It depends on how backed up they are, who the bank is and has the seller given everything to the bank that it has requested. A short sale is a very complicated transaction. Many things can slow it down or stop all together. The listing agent may not be aware the deal has stopped. The bank does not call you up and tell you there is a problem. The people that the listing agent talks too may not even know. That is why they can take up to 9 months to get done.
0 votes Thank Flag Link Tue Aug 23, 2011
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