Home Buying in Orlando>Question Details

Jai, Home Buyer in 32833

Do short sale always take months?

Asked by Jai, 32833 Fri Sep 28, 2012

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23
Antonio Vega-Pacheco’s answer
In my experience YES. The shortest one ever took 45 days, the longest was 14 months. Both of them had happy endings and close. Another was 9 months of waiting for nothing to happen, a big waste of time. With Short-sales you take your chances.
1 vote Thank Flag Link Sun Sep 30, 2012
Hi Jai,

Thanks for turning to Trulia for your real estate questions....

"Short Sale" is kind of an oxymoron....it being a figure of speech goes without saying that the time involved can be gruelling.
I've had some that have lasted 2 weeks to almost 2 years. The 2 weeker was a "bank approved price" where the previous buyer had walked.
"Short Sale" only referring to the "shortfall" the bank is or will take to sell the home not the length of time you put into it.

Good Luck,

Carol Bauza
Charles Rutenberg Realty
1 vote Thank Flag Link Fri Sep 28, 2012
Mark makes a very important distinction, are you a buyer or seller?

Other issues such as the number of lenders or investors involved and if any title complications may exist will all extend the time required to close a deal.

Regarding your question, 'taking months' would rarely be considered unreasonable for a short sale.

Please be aware, there are many strategies regarding buying or selling short sales that have significant benefits for the buyer or seller. Consult with a multi-dimensional real estate professional before throwing your hat into the 'short sale' circus. This is the most complex, convoluted process ever imposed on real estate professionals. Short Sales are the "Wild, Wild, West of Real Estate", where there exists an illusion of rules and anything can and does happen.

Short Sales are not suitable for all buyers. Very few have what it takes. 70 per cent of short sale offers fail. Most are due to the buyer not being able to endure to the end. Statistically, short sales, at most, sell for 15% less than traditional sales, in some cases only 5%.

Have your real estate professional share with your the real data for your area and assess if this represents a real value to you.

Best of success to you.
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote Thank Flag Link Fri Sep 28, 2012
Yes and No. If you are a seller, then the answer is definitely yes because of how backlogged the processing is and because a high precentage of buyers get tired of wating and walk away. If you are a buyer, then the answer is no. Just find a short sale that has been approved but where the buyer walked away. The fastest sale I ever did was an approved short sale. Form the time my buyer contracted me to when he owned the property was about 10 days.
1 vote Thank Flag Link Fri Sep 28, 2012
There are a ton of factors that can affect the length of time it may take before a lender will issue an approval letter. One that may drag the negotiations on for months is a valuation report that might be overestimating the subject's most likely sales price.

In markets with few comparable sales, you may wind up in a situation where the lender will hold firm on a price that really is unattainable and based on properties that aren't good matches.

In these sorts of situations, the buyer and seller agents may need to work together in completing a CMA that provides for the best value guidance and submit it to the lender.

In these sorts of statemates, where neither the lender nor the potential buyer is willing to budge, having the agents make solid and legitimate arguments for a more fair valuation could make the difference between a deal coming together or one that falls by the wayside.

Should you encounter a situation as described above, then just have patience and keep working towards the end goal. In all likelihood, it'll all work out.
0 votes Thank Flag Link Thu Oct 11, 2012
Some longer than others.. There are ways to speed up the process!!
0 votes Thank Flag Link Thu Oct 11, 2012
While no two transactions are exactly alike, short sales can take from the moment that you get the listing up to 8 months. Not only does a short sale require buyers and sellers to reach an agreement, but also the banking intitution and mortgage companies that hold the loans have to approved the transaction. Now, you can also be lucky and have a very organized homeowner giving all the paperwork that you need to start the process, get a cash buyer and last, but no least, an excelent negotiator that really wants to have the work done, This short sale will only take two months.

Maria Cipollone

http://www.Flahomespecialist.com
0 votes Thank Flag Link Thu Oct 4, 2012
Short sale can take as little time as standard sale or it can last forever. I had a short sale that closed in 30 days and I had a short sale that closed in 18 month. There have been many improvements in this area and lenders are more willing to work with realtors and complete sales in shorter time. You need to work with an experienced short sale broker who will be able to analyze seller’s situation before placing an offer and provide time estimate for you. For example if seller has multiple mortgages on property, you are looking from 3 month to may not close at all. If seller is working with inexperienced agent, you are in the same situation. If short sale package was already submitted to the lender and BPO completed, you may close in 30 days. Experienced broker will be able to guide you in this process.
0 votes Thank Flag Link Sun Sep 30, 2012
Jai

It really depends on how far along in the process you are, and how many parties are involved. If the home is 100% approved for a short sale at a certain price, then you can close it very quickly (under 1 month). On the other hand, if you are in the beginning stages of the process, it can take several months! Hard to say without knowing the specifics.

Best,
Nick Gandhi
0 votes Thank Flag Link Sun Sep 30, 2012
Hi, it all depends on the lending institutuion and all parties involved. There have been many recent changes by the government to help expeditie them. You can visit http://www.fhfa.gov/webfiles/24211/ShortSalesPRFactFinal.pdf and also the FHFA website for other changes....

Chris
0 votes Thank Flag Link Sat Sep 29, 2012
I have closed short sales in as little as three weeks (on a bank approved price) and as long as eight months.
Web Reference: http://www.TheBeachLady.com
0 votes Thank Flag Link Sat Sep 29, 2012
Hi Jail, Actually more and more homes are coming on the market with pre approved pricing from the banks. They are called co op short sales.
The main reason for delay are the banks and Realtors who are submitting incomplete packages to thethe banks.
As a CDPE agent I am certified to help guide you through this process when purchasing a short sale property.
There are other deals out there as well that are definitely worth taking a look at.
Are you buying for yourself or are you buying as investment to rent out?
Are you looking for something that might be needing a little bit of work to fix then rent and resell?
Are you using financing or are you buying with cash?
All of these items, and more, play a role in just abouta all transactions nowadays.
There's a lot of information you need to have before you begin this process.
I am happy to take the time to sit with you and go over these in detail. My goal is to have you as informed as possible prior to making an offer.

Call or email me anytime!

Brian Mahoney,CDPE
Direct 848-448-0333
Re/Max Town Centre
Orlando, Fl. 32801
Certified Distressed Property Expert
downtownremax@gmail
0 votes Thank Flag Link Fri Sep 28, 2012
Jai, unfortunately it does take some time to complete a short sale. One way to reduce the time is to apply for the short sale prior to listing the home. Many lenders have programs (BOA) where an agent can request the short sale and the lender will order the BPO prior to listing the home. This way the home gets listed with a guaranteed price and it may reduce the time to negotiate. It all depends on the home owner's situation and the lender(s) involved. Some are quicker than others. There are many factors involved and the more liens on the property, the longer it takes to negotiate these.

I do agree with most of my fellow realtors that a min. of 90 days should be considered if you are interested in purchasing (or selling) a home through short sale. I have seen them aproved in 30 days - however, those are the rare exceptions to the rule. Hope this helped.

Sincerely,
Jennifer Steele
Premium Properties R E Services
0 votes Thank Flag Link Fri Sep 28, 2012
Good Morning Jai,

Covering short sales myself as many of the Realtors' on here have, the simple answer is YES. Patience is a must and if you feel you are unable to wait (3 months minimum, this is what I have encountered on both listing and buying) you may want to consider another option, such as traditional sales or bank/reo.

--
Best Regards,

PHILLIP LIANG
PRUDENTIAL FLORIDA REALTY
135 E Colonial Dr
Orlando, FL 32801
Office: 407-406-5300
Cell: 321-356-7341
E-mail: rephillip@gmail.com

"YOU HAVE DREAMS, TOGETHER WE MAKE IT REALITY"
0 votes Thank Flag Link Fri Sep 28, 2012
Jai,

Hello Let me say Not all short sales take long, It really depends on many factors such as

the lender, The area, Price, and You. Much people will tell you they can close short sales

fast but keep in mind every short sale is different and will have a different outcome.

If you are the buyer you may feel that this is a long process and it will wear you down but remember

your agent wants the best for you and is pushing to get this closed as fast as possible.

Ricky Miller
http://www.RickyMovesFlorida.com
321-293-2154

If you have any questions feel free to email me
Ricky@RickyMovesFlorida.com
0 votes Thank Flag Link Fri Sep 28, 2012
Not really, you have an answer as soon as you know the pay off, the answer is no! Most never close so if you throw that into the calcs it is a lot longer than a few months.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Sep 28, 2012
NO - They do not always take months. Sometimes they do but I had one that I got approval on in 20 days which is of course not common but I do get approval on most of my short sales in approx 45 days. The key is working with an agent that has lots of experience in short sales.
0 votes Thank Flag Link Fri Sep 28, 2012
Hello Jay;

That is a definite YES. Depending on who you are dealing with on the other side it might take even longer. I advise to check who is handling the negotiations on the seller's side because there are certain law firms that will do as little as possible to make the deal progress since they already have been paid.

Good Luck.

Alexander
0 votes Thank Flag Link Fri Sep 28, 2012
Hi Jai, they usually do, and the reason is that many times there are behind the scenes negotiations going on between various parties. There may be a second mortgage in which case the two banks need to sort out who gets how much money. In one case I had, there was an IRS lien against the property no one knew about. I just had one that took 14 months, and then the bank came back with a counter 30,000 over the contract and listed price. We have no way of knowing what needs to be sorted out behind the scenes, so there is no way for us to have impact in controlling the time factor. The banks are normally coming back at an appraised price after all the waiting. I had two fall apart last week because of counters from the bank significantly higher than our contract price.

Myke Triebold, GRI, LMC, SFR, aBR
MykeSaysSold@aol.com
850-305-6256
http://www.DestinHomeRealty.com
0 votes Thank Flag Link Fri Sep 28, 2012
Hi Jay,

I had clients waiting for over 8 months!!!
0 votes Thank Flag Link Fri Sep 28, 2012
YES and then 18 months of missing out on better deals, buyer's find that the appraisal will be less than the sales price.

They have beme such a joke that even hearing the term "short sale" makes those in the indusrty roll thier eyes and laugh inside.

Here are a few terms that best describe short sales:

Long Sales
Clown Car Full of Horrors
18 month Hope to Gains
Train To Nowhere
Chasing A Carrot
Perpetual Nightmares

===
0 votes Thank Flag Link Fri Sep 28, 2012
Sometimes over a year average here is 263 days to close for those sold in September
0 votes Thank Flag Link Fri Sep 28, 2012
yes, 4 - 6 months is the norm. Why do you ask ? please text 407 832 4888 for further help
0 votes Thank Flag Link Fri Sep 28, 2012
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