Home Buying in Queens>Question Details

Chris, Home Buyer in 11105

A few of the potential homes we came across are short sales. Can anyone tell me the average time frame for closing a short sale?

Asked by Chris, 11105 Mon Mar 4, 2013

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Chris, 3-6 months is the average time. But the time can vary significantly subject to the specifics of each transaction. Javier is right regarding the experience of the professionals involved. It's critical that the agents, attorneys and your mortgage professional all have experience with short sales. This is especially true of the person taking the lead to negotiate the short sale, which is usually an agent, attorney or third party. Anna made a good point about the number of liens on the property, too. It's generally easier to get the short approved if there's only one lien holder involved. I have extensive experience helping first time buyers become successful homeowners throughout NYC and the suburbs with affordable and easy to understand mortgage solutions. And many of my clients have purchased short sales. For more information or assistance, I can be reached at 917.699.0183. Follow me on twitter @mdenniston247.

I value your feedback, please hit the thumbs up if my reply was helpful.


Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
1 vote Thank Flag Link Tue Mar 5, 2013
Well there are several factors that determine how long a short sale takes. About 70% of the loans I close happen to be short sale transactions, so based on my experience I would say the Real Estate professionals you work with and their experience with short sale transactions are a HUGE determining factor when it comes to your question. If your working with a Realtor, Loan Officer and an attorney who know little about short sales or are not thoroughly educated on how to work on short sale transactions, you'll find that it will be a longer process. You want to make sure that the Realtor you're working with handles short sales on a regular basis. They usually have contacts to other attorneys and Loan Officers who also regularly deal with short sale transactions. Make sure you speak to more than one attorney and Loan Officer before you determine who you will work with.

The status of the homeowner and their loan services also has a lot to do with it. Speak to an experienced Realtor and have then walk you through the process. Normally a short sale transaction should take about 2-3 months. I've also seen some that take 6-9 months, those are the times that I've seen that the professionals involved had very little knowledge of short sales and how to put those transactions together and poor abilities to process these short sales. Again, there are several different things that come into play, but this is what I've seen.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
6 votes Thank Flag Link Mon Mar 4, 2013
Keep in mind that each short sale is unique, and some are by no means fast sales; much will depend on the lender, the number of liens involved, who is negotiating the sale on behalf of the owner, was/is all the necessary paperwork provided to the lender in a timely fashion, etc.
2 votes Thank Flag Link Mon Mar 4, 2013
From $600k and up? So if they're purchasing for $500,000 that's no good?
2 votes Thank Flag Link Mon Mar 4, 2013
Good afternoon Chris,

I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you think my answer was helpful, please give me a "Thumbs Up" or select "Best Answer." Thanks!
0 votes Thank Flag Link Thu Mar 28, 2013
Thanks everyone. These responses are extremely helpful. We have just begun our search for a 3 bed 2 bath single family home ideally below 450,000 in East Elmhurst, Jackson Heights, Corona or Flushing not too far from Northern Blvd where our daughter's school is located. If the home we find happens to be a short sale, I will contact one or more of you. Thanks again for all your advice and I will be in touch. Chris
0 votes Thank Flag Link Tue Mar 5, 2013
Chiis, That would depend on the and type of agreement with the bank.

Please give me a call at your earliest convince.

Thank you.

Fajardo Delacruz
Century Homs realty
347 932-0609
0 votes Thank Flag Link Mon Mar 4, 2013
from $600 and up
if you need help call me 917-723-3000
0 votes Thank Flag Link Mon Mar 4, 2013
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