Home Buying in Stockton>Question Details

Coco, Home Buyer in Stockton, CA

Any news on the time frame for short sale approvals?

Asked by Coco, Stockton, CA Tue Sep 8, 2009

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Hi Coco,

Most of the title company escrow officers have commented that many of the short sale approvals are coming a little faster recently. They are recommending real estate brokers to work on them. Also, due to less inventory of homes on the market; many buyers are looking and making offers on short sales.

But, it is important to understand that a mortgage company is being asked to take a loss!
0 votes Thank Flag Link Thu Sep 17, 2009
The variables on short sale approval time are many. In addition to which lender(s) are involved, the following are also very important:
1. Is there enough money in the transaction so that the second lien holder will get at least 10% of the payoff owed to it?
2. Is the agent handling the transaction knowledgeable about the short sale process and exceptionally persistent about contacting the lenders(s) and following their required procedures?
3. Is the seller capable of bringing additional cash to the table at the last minute (since banks are often coming back these days at the end of the transaction and upping the amount they're willing to settle for)? (BTW-sellers often have the ability/willingness to tap into family or friends if it's the difference between being able to close the deal or not)
4. Is the seller willing to carry back a personal note from one or both of the lenders? (sellers are sometimes willing to do this and the banks are asking for this more and more)
5. Is there private mortgage insurance securitization involved? This is not just private mortgage insurance, but it is a pooling of these insurance policies that has led to quagmires not unlike the pooling of the loans themselves. If this is the case on the property, you typically can't find out about it until the end and it often kills the deals because many of these companies won't agree to the short sale.
6. Are there other liens on the property than may not have shown up on title yet (cities and counties can sometimes be slow in posting liens for garbage, clean-up, etc., and if these show up late in the process the negotiations may need to start all over).
7. Are there HOA (home owner association) dues owed? Banks are really pushing back about being willing to pay these off.
Hope this helps!
0 votes Thank Flag Link Tue Sep 8, 2009
Really depends on the lender and number or loans.
0 votes Thank Flag Link Tue Sep 8, 2009
I have seen as little as one week to 4 months. It really depends on the lender along with the package that is presented to the lender and how timely the seller provides additional information asked for.
0 votes Thank Flag Link Tue Sep 8, 2009
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