When you write an offer on a bank owned property depending on how many offers there are, it can take a couple days to a couple weeks to get a response.
The Carrabba Group
Keller Williams Hollywood Hills
On average a short sale 3-4 months
On average a bank owned home a week or so.
Keep in mind the bank does not have to answer and sometimes this is how they answer when they don't like something.
So Cal Homes Realty
We recommend for all our clients if you submitted an offer best keep looking due to "unknowns"
Yours is the six million dollar question!
Here goes. On a short sale, the length of time for approval is dependent upon many factors. First of all, is there real hardship on the part of the seller? That could be loss of a job, divorce, medical bills, etc. (Contrary to popular belief, the property having lost all equity is not considered hardship by the lender.) Without a true and provable hardship, there will be no approval of a short sale. In addition, if there are assets held by the seller that allow him to pay off the mortgage, there will be a denial of the short sale. So be sure there is a provable hardship before you bid on a short sale.
Next, who holds the lien, or liens, against the property? One lien only makes for an easier, faster short sale. Two or more liens becomes more complex, and a longer process. However, if all liens are held by the same lender (say, Wells or B of A) the process is usually simpler, and therefore faster. So best case scenario is one lien, or one lender. Make sure your Realtor is checking on the amount, and holder, of the lien (s).
Once a buyer is located for the property, approval of the short sale is requested from the lender. A completed package must be submitted to each lender, including all listing and purchase agreements, fully executed and dated by all parties; all necessary addendums; a hardship package, containing the hardship letter and supporting documentation; two years of tax returns, W-2's, and all household bills; and a HUD-1 form. If any of the documents are missing or incomplete, this will add time to the approval process, and the file goes back to the bottom of the stack. (Hence the necessity of working with a Realtor who is trained and certified in the Short Sale / Foreclosure process!) The lender will obtain an appraisal and/or a Broker Price Opinion, to evaluate whether the offer made by the purchaser is a valid one, based on market conditions. ( With a valid reason, or a relationship with the bank, the lender will perform a "rush" appraisal; I had one this week requested 24 hours from receipt of the package.)
The entire approval process takes anywhere from 30 to 90 days, after which the lender gives approval for the short sale, or gives approval subject to a higher sales price, or denies it altogether. The process was taking longer, but many lenders have worked diligently to streamline their short sale process, resulting in shorter approval times.
If approved, the buyer is generally given 30 days to close the transaction, or the property must be resubmitted for a new approval.
On a foreclosure, the process is different. One lender owns the property, and is marketing the property at a price that has been predetermined by them as acceptable. Once your offer is submitted to the bank, you can generally expect a response in 7 to 21 days as to whether it is acceptable. The one caveat is if the bank is leaving the purchase open to the best offer for a period of time, say, 30 days, and choosing the best offer at that time.
As you can see, I am certified by two different organizations in the short sale / foreclosure process, and I know some of the best certified Realtors in the industry. If you would like a Realtor local to you who is certified, and can help you with your questions, contact me directly. I can refer you to one of the best.
Good luck, and hope this helps.
Certified Short Sale Professional
Certified Home Retention Specialist
Blogging at: http://TheBremnerGroup.com/blog
Most short sales take way too long (1-3 months). However, Wachovia has introduced a new program in California that is designed to seriously speed up this process. Which is beneficial equally to the sellers and buyers.
REO (foreclosures) usually get a pretty quick response. This is because there is an asset manager already assigned to the listing.
In my experience banks,
Bank owned properties....some respond within a couple of days and some it takes a few weeks.
Short Sales - WOW... get you patient hat on. some (not many) in a few weeks and some can take 9 months. I would say the average is 4 months from the time the house has been put on the market. But that is no guarantee.
Best of Luck