Home Buying in 92324>Question Details

Chito, Home Buyer in Colton, CA

How do you speed up a short sale? I am already pre-qualified to the price the seller is asking. What is the average waiting period on a short sale?

Asked by Chito, Colton, CA Mon Oct 3, 2011

Help the community by answering this question:



the waiting period is depending on the bank, how quickly you, AND THE SELLER, respond to the paperwork the bank requests. If everyone is working together, in my experience:

Wells Fargo 60-90 days
Bank of America: 90-120 days
Smaller banks: 90-120 days

BUT!!!: if there are issues, counter offers back and forth, an unresponsive seller that does not get paperwork back to the bank quickly, it could take much longer. As well, if there are multiple liens/mortgages involved, it could take longer.
1 vote Thank Flag Link Tue Oct 4, 2011
Chito, I wish I had a dollar for every person I've answered this question for. You'e at the mercy of the lenders through and through period. They all go at their own pace and you as the buyer have absolutely nothing to say or do about it.

It can be a very arduous, time consuming and frustrating experience. Lot's of buyers don't have the stomach to deal with all the minutia and just give up. Unless you're doing it for a living the negotiation process can be grueling.

Sometimes inexperienced buyers are just better off going the traditional route. In today's market due to the downturn in values you can still foster some very attractive deals out there without having to deal with all the BS. Good Luck.
0 votes Thank Flag Link Wed Oct 5, 2011
Chito -

Ah, love this question. Answer: anybody's guess.

So many variables. I once had an approval from lender, and they WOULD NOT email/fax etc me the letter insisting that it would be coming in the mail to my client. It took 21 days to get the letter! Really!

On the other hand, I had another short sale approval letter in hand 2 days after the offer was presented.

The variables?
The buyer's agent
The seller' agent
The negotiator(s) (How many loans?)
The processor(s)
The investor(s)
The Mortgage Insurance company (if applicable)
The Escrow company
The method of communication (email/fax/equator/slow boat ...)
The weather
The stars...

I am being sarcastic but there is no definitive answer. Even if it is the same lender as last time, I have no way of predicting. I simply stay on top of it and make sure it happens as fast as the list above allows it.

Good luck!
0 votes Thank Flag Link Tue Oct 4, 2011

Short sale transactions are closing quicker because many of the banks are working to close short sales in a timely manner. When considering a short sale, check to see how many loans are on the property. A second loan has to be negotiated which can cause the short sale to take longer. Loans with the same bank will typically take a short amount of time to get short sale approval.

Short sales that have short sale lender approval will close faster since the sale has already gone through the short sale process. Many short sales have gone through the process and received short sale approval and the buyer backs out. My experience in closing short sale approved homes, typically the short sale approval is provided in 30 – 45 days. Short sales may take longer they are a great opportunity in buying a nice home.

Carol Perdew
Prudential California Realty
(209) 239-7979
DRE 985176
0 votes Thank Flag Link Tue Oct 4, 2011
One of the big problems with shortsales is that you need to have confidence in both the listing agent and the seller. Short sale applications are not too difficult however they are very detail orientated and most banks wont even look at the package unless is is 100% complete.
When a seller applys for a short sale the seller with the help of his/her agent is deciding the asking price, however the bank needs to approve the price, because many buyers will not look at short sales and most agents discourage buyers looking at them, they are usually priced lower than what the bank will think it is worth.
Short sales can take 45-60 days once the application is completed and submited but there are many listing agents & sellers that take 30-60 days just to get all needed paperwork.

It is important that if you are interested in a short sale you and/or your agent should contact the listing agent and discuss the status and progress of the application, What it submitted yet? How long ago? What bank is it with? etc.

Jared Garcia
Real Estate sales person
Loan officer nmls #367092
847 Fulton St
Farmingdale NY 11735
0 votes Thank Flag Link Tue Oct 4, 2011
Hi, There is nothing that you can really do to speed it up. It's up to the seller filling out their paperwork properly and getting the bank everything they need. then it's up to the bank to approve and close it. The process has gotten a little faster but sadly the amount of shortsales that don't close is still 50%.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
0 votes Thank Flag Link Tue Oct 4, 2011
The last three short sale transactions I have done have all been approved in less that 60 days. The one I am currently working on was approved in 3 weeks. It is getting better. Banks are now familiar with the process and are implementing new ways to speed up the process. Make sure your agent and the seller's agent both fully understand how a short sale works. Find out what kind of loan the sellers have. If it is an insured loan through HUD, it can take longer because it will need HUD approval. Some are requiring the home owner to first try a loan modification, even if the home owner doesn't want one. That can delay things for up to two months. Ask questions and check in with your agent twice a week to make sure they are staying on top of it. Ask for a detailed explanation of where they are in the short sale process. I have had many short sale negotiators tell me that the key to a successful short sale is to follow up with the bank and call, call, call to make sure your file doesn't fall through the cracks.

Once your agent answers your questions about where you are and what kind of loan you are dealing with, go online and research that info. You will find thousands of posts from other people who have gone through it. Good luck!
0 votes Thank Flag Link Tue Oct 4, 2011
Unfortunately there is nothing you can do to speed up a short sale. We are all subject to the bank's time frames. It usually takes 3-6 months. Things that help the process are 1 loan/lender on the home, and the home was listed and the offer submitted at current market value, not below. However ther is never a guarantee of the short sale being approved.
0 votes Thank Flag Link Tue Oct 4, 2011
As the others have said, it takes time. I can tell you how to increase your wait time -- make low offers thinking the bank is desperate to get any offer. They love those. Good luck, and like Phil says, continue to look while you wait - and wait - and wait.
0 votes Thank Flag Link Tue Oct 4, 2011
Wrong mind set for getting involved in a short sale.
You may want to keep looking at other homes while you're waiting.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Oct 4, 2011

There is really no speeding up the short sale process beyond controling what you are responsible for. Make certain that your paperwork is both complete and accurate will help.

The most time consuming factor with short sales is normally on the part of the bank......and there's no way to move them any faster than they are willing to move! Control what you can on your part and then plan on waiting usually 2-6 months.

Good luck,

0 votes Thank Flag Link Tue Oct 4, 2011
Wait time depends on the lender, how many lenders, all sorts of things. Your best option is qualifying the situation and agents involved to see if it can even be done. The longest I've seen is nearly two years, but on average 4-6 months. There are so many variables, each situation is different.
0 votes Thank Flag Link Tue Oct 4, 2011
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