Home Buying in Waldorf>Question Details

Rosa Sharp, Home Buyer in Maryland

Do most short sale take a long time to go to settlement?

Asked by Rosa Sharp, Maryland Wed Jan 30, 2013

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12
Good Question Rosa. There are a lot of different factors that play into this question. Often times, it has to do with how many liens are on the property and the motivation of the seller and all agents involved in the transaction. Depending on what bank you are dealing with, it can go either way. If you are currently in a short sale contract you should just make sure you are getting weekly updates so that you can be involved in the process. Yes, on average they take from 3-6 months, but I have seen some settle in one month and others that have taken 12 months to get to settlement. If you are not working with an agent and have questions about the process or would like to learn more, I can send you an information package or meet with you to answer your questions. Best of luck to you Rosa :)
1 vote Thank Flag Link Thu Jan 31, 2013
Yes, you should plan on a minimum of 90 days for any short sale. I've seen them go as quickly as 45 days and take as long as one year to successfully process or be declined. Make sure the listing agent has qualified the seller for a hardship and find out if they are handling the negotiations themself or using a 3rd party licensed negotiator. Those tend to be more successful.
0 votes Thank Flag Link Wed Jan 30, 2013
The duration and success of any short sale are dependent on 4 key factors.

1. The experience and quality of the short sale agents.

2. The complete cooperation with the process of the home sellers.

3. The bank and or banks involved in the short sale approval.

4. Responsive communnication between all paries involved.


Greg Myers
RE/MAX Realty Group
0 votes Thank Flag Link Wed Jan 30, 2013
If you do all the paper work before you list it then get the approval from lender the progress go munch easy but still take months to get anwser.
0 votes Thank Flag Link Wed Jan 30, 2013
Hi Rosa,

All short sales vary in time depending upon a number of factors i.e. numerous liens, the quickness in which paperwork is processed, short sale system utilized i.e. equator. I always tell my clients to anticpate 6 months. Now some short sales happen quickly others have taken over 12 months.

Good luck
0 votes Thank Flag Link Wed Jan 30, 2013
All Short Sales are different however if you are working with agents that have knowledge in the field of Short Sale transactions, they should take somewhere around 90 days. I know with our group, we close 98% of our Short Sales from listing to closing within 90 days.
0 votes Thank Flag Link Wed Jan 30, 2013
If you have a specific housing need to get into a place by a specific date, short sales are not for you. They are incredibly frustrating to buyers, sellers, and agents. Yes, most do take a long time to go to settlement.
0 votes Thank Flag Link Wed Jan 30, 2013
YES! Usually many months even in the best cases.
0 votes Thank Flag Link Wed Jan 30, 2013
There are many factors that go into the time involved in getting a short sale to settlement. Banks, in general are not staffed to handle the thousands of short sale requests/files they receive. It is not uncommon for a short sale negotiator at the major banks to have as many as 100 files on his/her desk at a time. Because most complete short sale packages include more then 100 pages, it is imparative that the seller and the sellers agent be as thorough as possible in compiling the package prior to it going to the sellers bank. If a package comes to the bank representative, incomplete, it can easily end up on the bottom of the pile. The sellers agent and the seller must also be responsive to the requests of the sellers bank, otherwise the file will just continue to sit in the stack of files awaiting processing. Other facotrs that could increas the time involved would include how many liens are on the property, has the list price been approved proior to the offer, or will the valuation process take place after a contract has been submitted, and who the bank is(some banks have a bad reputation for taking a significantly long time, while others are much more efficient). I have seen short sales take as little as 6 weeks to process and have known them to take as long as a year. If you do your homework up front and align yourself with an agent who knows about short sales, you will be starting with a nice solid foundation. There are several designations that indicate agents have been provided the tools to arm themselves with when it comes to processing short sales. The most widely known is CDPE (Certified Distressed Property Expert), a course offered by the Charfin Institute.
0 votes Thank Flag Link Wed Jan 30, 2013
Hello Rosa,
In my experience of processing short sales, on average they settle as quick as 60 days and and I am working on one now in which the process is taking 9 months and still does not have an approval. It all depends on the lender. Investor backed loans and Government Owned Loans (FHA etc...) take the longest to complete.
Marcia
0 votes Thank Flag Link Wed Jan 30, 2013
All short sales are different, and it depends on how many lien holders are involved and who they are. Some banks are notorious for taking a long time. I had one short sale (listing) that took over a year to complete. This was thanks to BANK OF AMERICA, and a terrible HOA management company HAMMERSMITH MANAGEMENT in the Denver metro area.
0 votes Thank Flag Link Wed Jan 30, 2013
Yes, if a regular sale takes 60 days, a short sale takes at least 90, and often quite a bit longer. The pay off for buyers is usually a better price, but it requires patience, extreme patience.
0 votes Thank Flag Link Wed Jan 30, 2013
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