M&m Kid, Home Buyer in Barnegat Township, NJ

Can you give me an estimate on how long it normally takes to hear back from the bank on a short sale?

Asked by M&m Kid, Barnegat Township, NJ Mon Nov 21, 2011

I placed and offer about 3 weeks ago, the seller accepted and now it is with the bank. The bank did request a HUD statement from the seller.

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M & M

Hard to know. I believe banks are now mandated to give an answer within 30-60 days from submission of a COMPLETE short sale packet from the seller,(however, my last short sale took 5.5 months for an approval.)

The complete packets always includes a preliminary HUD-1, which tells the bank an approximation of what their final NET will be after paying necessary charges and fees.

Someone at Loss Mitigation will review the packet. If paperwork is missing OR the bank requests additional paperwork from the seller this can delay the process,

Once the bank deems the packet complete they should order a BPO (broker price opinion). This is the equivalent of a market analysis and lets then bank know what the fair market value of the house is so they can make their decision of accepting, rejecting or counter-offering your contract. I would have your agent ask the sellers agent to at least let you know that the BPO was ordered, and performed. This should give you an idea that the bank will be responding within a few weeks.

A short sale is NOT a short process and it takes two diligent agents and lots of communication, to get it to closing without the buyers getting frustrated and backing out of the transaction..

I wrote an article on the process. Hope this helps.

http://marypetti.wordpress.com/2011/04/28/short-sales-a-not-…
0 votes Thank Flag Link Tue Nov 22, 2011
Unfortunately there is no set time within which a bank must respond and actual time frames vary by bank and within the same bank by transaction. I've had a short sale approved in as fast as 2 weeks and had a couple drag out for 3 months.
0 votes Thank Flag Link Tue Nov 22, 2011
As already stated, it's tough to tell. The HUD 1 should have been submitted with the contract. It tells the bank what they'll be taking away from the sale. Next will come an appraisal or Brokler's Price Opinion (BPO) unless the bank has already had an offer and the appraisal is still current.

Laura Giannotta
0 votes Thank Flag Link Mon Nov 21, 2011
If they requested a HUD then your in the beginning stages. There's no definitive answer on how long it could take because there are many other factors such as which bank it is and if there's any additional liens on the property. The main factor determining the time is going to be the agent that's handling the short sale and their level of expertise.
0 votes Thank Flag Link Mon Nov 21, 2011
Forever. Kidding aside, there is no rhyme or reason. We've closed 2 short sales that had offers this August in the past two weeks & are still waiting for an approval on a July short sale offer. It depends on the bank, person(s) handling the file, the brightness of the moon (jk). Truth is, there is no definite answer here. You just have to wait it out.
The Marie Souza Team - Top Selling on Cape Cod
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0 votes Thank Flag Link Mon Nov 21, 2011
If the HUD statement was not orig submitted with the package then it is being submitted incomplete. Meaning the HUD should have been given at time the orig package was sent to the bank.

Now it could be an updated HUD is needed... something may have been wrongly put on the HUD... Banks sometimes will not allow certain charges on their side of the expenses and that will have to be corrected . So it would be lots of reasons. Part of the negotiation process.

Ask agent for updates and clarifications. http://sicklervilleshortsalerealtor.com/sicklerville-nj-buyi…

Search foreclosures and short sale here: http://www.larrysarlo.com/shortsales.aspx


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0 votes Thank Flag Link Mon Nov 21, 2011
Often the bank requests a HUD from the buyer too.

I think anyone who has dealt with short sales wishes they could give you an estimate on how long it takes. It almost seems random! Best of luck, patience is a virtue, and will often pay off when buying a short sale.
0 votes Thank Flag Link Mon Nov 21, 2011
Best answered by the Realtor that is handling the bank for the seller, they have direct contact, good luck.

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http://www.trulia.com/blog/jimsimms/2011/11/i_cause_my_own_p…

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0 votes Thank Flag Link Mon Nov 21, 2011
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