Home Buying in 95662>Question Details

Alysha Rogers, Home Buyer in Sacramento, CA

How long does a short sale normaly take?

Asked by Alysha Rogers, Sacramento, CA Thu Aug 1, 2013

I found a house it's my realistate's brothers house. They gave us the keys said to clean it up. we paid for the inspector things that did'nt pass we did our best to fix. they kept saying it's your house it's your house. Than the contract ended we have been fighting for this home since dec of 2012. They got a 7 thousand deposit now there saying the paperwork is moving in the bank after i told them i dont want the house anymore. If i dont sign a cancel contract and the bank says yes to my contract is the house mine?

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Short sales are a wild card, you could have a short sale approval within weeks or up to a year. The speed of a short sale depends on have many loans are on the property, how busy their caseload is, and sometimes luck.
If you don't want the house anymore, you need to sign a cancellation of contract and have your deposit released from escrow. I would not waste time or mess around with the bank, in some cases they can take your deposit if you wait too long.
0 votes Thank Flag Link Fri Aug 2, 2013
Hi Alysha. Short sales can take from 3 months to a 1.5 years. Just depends on how many loans are associated with the property. It also is depended on who the lien holders are and finally on how experienced the listing agent is with the short sale process. Recently, it has been easier to get an approval from the lien holder(s), as with 3 of my last 4 Short Sales, I was able to get an approval within 45 days from start of the process and closed in less then 90 days.
In reading your comments, I am not sure what you are trying to say. I do know that if your purchasing the property and the short sale has NOT been approved by the lien holder(s) of the note, then you should not be doing anything in regards to inspections or repairs as this could be a waste of your time and money. ONLY when you see an approval from the lien holder(s) accepting all the terms and conditions of your offer and the sellers request for Short Sale, is when you would start the process of inspections. If do not want the home and you have not seen an approval letter yet, then you can back out at any time and get your $7K back. Also, you should have 17 days from the date of the Approval letter to also back out with no issues as per the normal purchase contract states.
Good luck and hopefully this answered your question.
Ernie
0 votes Thank Flag Link Fri Aug 2, 2013
Part 2... I sent him an e-mail today and told him that My family worked hard cleaning this home I have pics before and after. I would like to have the home that I am still wanting the home for the 2k but i will not pay for the 3k bill that he had hired to get the home up to code. he is so rude he sends an e-mail back to me said I had time to do all the repairs on the home, He is not sure if the loan officer can still do the loan for me ( I talked to him he said not a problem) He"s now saying he showed the home to 2 cash buyers and they are very intrested, he also says that we are out of contract and the bank might want more that 200k
does this sound professional? do you have any advice?
Flag Sat Aug 3, 2013
The home is my realestate man's brother lost this house.since we were having so trouble finding a home my realistate agent showed us the home we said we love it that's when he handed us the keys to the home said it's not on the market we will put it up for a day and take it down right away. so we were happy.we started cleaning it. They told us to fix everything on the list from the inspection. we started doing this spending alot of money . Than they tell me that the bank is taking there time and I would have to re-submit paychecks and so forth. I told my husband not to work on the house. the next thing I know they have a man working on the house fixing the remaining things from the inspection. They handed me a bill and said to pay it. I told him this is not my home he said .First of all FHA requires all repairs . than tells us that we had more than enough time to fix all the repairs. I sent him a not the other day saying i wanted out and i wanted my money back.
Flag Sat Aug 3, 2013
You mean a long sale? LOL!
0 votes Thank Flag Link Thu Aug 1, 2013
WOW! First, a short sale is not an approved sale unless the investor (not the loan servicer) provides written approval that they will accept less than what is owed and the transaction can move into escrow.

I'm not sure why you obtained possession unless you secured a rental agreement on the property prior to the sale completing? You say you had an inspection and you paid for repairs on a house that you didn't own?

Your right to receiving your deposit back is defined in your CA purchase agreement. That agreement does not even begin to execute until the lender approves the short sale, and assuming that there was a short sale addendum signed.

I don't understand where you are in your process, but I'd suggest you have your realtor and their broker help you understand. Then I'd contact an attorney for some very valuable legal guidance. It doesn't sound like you understand where you are in your contracts.

Good luck.
0 votes Thank Flag Link Thu Aug 1, 2013
Hi Alysha

I'm trying to understand your situation. To answer your first question, it depends. Lately, most short sales I complete happen wihtin 60-90 days. However, I have had some close sooner and some much, much later (over one year). They can be very challenging depending upon the investor, servicer, negotiator, etc. Lots of moving parts that can sometimes go beyond our control.

Now about your transaction (scratching my head). Did you take possession of the home before closing escrow? That sounds like where things may have gone wrong. For their protection, I would not have allowed my buyer to do anything to the home that was not within the terms of the contract. Typically, home/pest/roof inspections on short sales don't occur until after a short sale lender approval has been received and contractual timeframes begin.

Regarding your deposit, the terms under which your deposit can be returned should also be included in the contract. Once you start performing outside of the contract, it's very hard to say who is right and who is wrong without litigation taking place.

Sounds like you may need to speak with either your agent's broker or a real estate attorney. I'm so sorry that you are going through this. What a terrible headache.

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
SAR Masters Club Member 2012
SAR Masters Club Steering Committee
Mathews & Co. Realty Group
@ Century 21 Landmark Network
keisha.mathews@century21.com
(916) 370-1803 cell
lic#: 01439130
0 votes Thank Flag Link Thu Aug 1, 2013
yes 3-6 months & sometimes(mostly in my cases!) seems like it takes 3-6 YEARS!!
0 votes Thank Flag Link Thu Aug 1, 2013
It can take 3-6 months on average. I've also seen some go as long as a year. Remember also that many short sales are not approved - thus, you could wait for months and the bank chooses to foreclose instead.

The contractual question is best addressed to a realtor who is familiar with the paperwork or a real estate attorney. Without being able to see the documentation, it's hard to know where things stand.

Best of luck.
0 votes Thank Flag Link Thu Aug 1, 2013
Normally I would say defer to your Agents Broker and maybe I should stick to that but something doesn't sound right here. Is your deposit with an escrow company and have you called and verified the $7K is in an escrow account? This would put it a little bit more in prospective.

A short sale should not take that long in this market unless it's once of a few banks who are hard to work with but by now I would think you would have some sort of movement. Was the house listed in the MLS? Are you seeing homes in the area selling for much more than you think you are buying the home for? What is your situation with your lender? Have they gathered your documents etc?

I would be happy to look up the property and make sure its on the up and up based on what I can see but some of the things above look like red flags. Are you living in the house?

My email is bruce@eCurbRealty.com

Maybe the next step would be for you to contact the agents broker but first call the escrow company to make sure your deposit is in their account.

Bruce Slaton
Broker
Realty World eCurb REALTORS
0 votes Thank Flag Link Thu Aug 1, 2013
yes the escrow has my money. The realtor that we have doesn't explain anything to us. I just want a home for my family . I qualify for 240.00 but it seems to me that if Im not looking for a home 300 and up people dont want to help little people like me. Do you know of any FHA 4+ bdrm 3+ bath at least 19 hundred sf ou up In a nice area? If you can find something like that You would be an angel. You have no idea how mych my family would greatful
\ thank you alysha
Flag Fri Aug 2, 2013
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