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Mom, Home Buyer in Woodbridge, CT

How long does it take to close in a short sale situation?

Asked by Mom, Woodbridge, CT Wed Sep 28, 2011

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Hello Mom in Woodbridge,
Yes, short sales can take a long time to just even get the bank's approval of the offer let alone see the property close. Typically, they are taking anywhere from 4-6months to close but if there is more than one lender involved then it can take even longer.

However; there are some short sale listings that already have the bank's approval on the price and if a short sale moderator is involved then it lessens the time to complete the sale.

That being said; each short sale can be different. It's important to work with a real estate agent who is knowledgeable and experienced with the process so that he can guide you through the steps and keep you informed.

Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Wed Sep 28, 2011
At the moment, a best case scenario would be almost 4 months to close escrow on a short sale. There are dozens of variables involved which can easily stretch that to a year. Let's start the clock at the time you submit your offer. Your agent presents the offer and let's say the seller makes a prompt decision. Then, your offer is sent to the lender within a week. If you have a very diligent real estate broker who gets in all the required paperwork to a major bank, you might be able to get an answer back in a month. With a bit of additional paperwork from the seller, you could be in escrow within 2 months. From there, you should expect 30-45 days to close escrow as the lender supplies their required documents.

Usually, the biggest time variable is during the first month when you're waiting for an approval. If your real estate broker misses a single required document or neglects to follow up, you can easily wait 3-4 months just for that step.

New systems are being developed to help streamline the short sale process. If properly implemented, we could be looking at as little as 2.5 months to close a short sale transaction.
Web Reference: http://www.archershomes.com
3 votes Thank Flag Link Wed Sep 28, 2011
Each short sale is very different so there is no exact time but there is nothing "short" about them. It depends on the Realtor also. A Realtor with short sale experience representing the seller or buyer can help speed up the process but I know that in Southern California they seem to take an average of 4-6 months. If you are in any hurry to buy I would recommend them unless it is already "short sale approved." Approved is the key word. That eliminates a lot of the waiting period because the lender has already agreed to accept a short sale. You need a lot of time and patience for a short sale but there is lots of great deals out there. Good luck. :)
1 vote Thank Flag Link Sun Oct 9, 2011
A properly executed short sale with an experienced short sale listing agent and a single lien, with MOST lenders today ( and NOT A HAFA short) should take about 4-7 weeks for approval. That does not include time to find a buyer, or time for the buyer to close after the approval. I personally close more short sales than any other CT agent and can tell you, from experience, this is a comfortable time frame for a single lien, and may still vary, Ive seen 5 days for a short sale approval, I've seen a year+...but on average 4-7 weeks from the day you have a buyer/full package in to lender. More liens = more time.
Web Reference: http://www.homesbyminna.com
1 vote Thank Flag Link Sun Oct 9, 2011
It does vary from state to state. Typically when getting a third party approval, such as in a short sale, banks are getting more agressive to answer at a faster pace as long as the seller is in full compliance with their bank to sell a home under a short sale status. This is where an agent comes in to be sure seller is in compliance at all times, this way it doesn't waiste any time for the buyer and the third party approval (the bank) under a short sale is approved faster.
1 vote Thank Flag Link Sat Oct 1, 2011
Hello,

Short sale transactions are closing quicker because many of the banks are working to close short sales in a short time. 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.

Short sales that have short sale lender approval will close faster. My experience in closing short sale approved homes, typically the short sale approval is provided in 30 – 45 days. My buyers are able to buy nice homes at a great value with a smaller waiting time.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
DRE 985176
1 vote Thank Flag Link Wed Sep 28, 2011
On average it is 3 months, if the short sale package is not complete or the offer is lower than market value or if there are 2 mortgages it is ofent 4-6 months.

http://www.trulia.com/blog/scott_godzyk/2010/10/so_you_want_…

Please see my blog for alist of tips and advice for buying a short sale.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Wed Sep 28, 2011
Each short sale is unique, therefore there really are no set standards of time until the closing table; some are faster than others, some may never close; much will depend on the lender, required paperwork in order, the number of liens involved, who is negotiating the sale, etc.; if asking about a specific property your agent can better advise.
1 vote Thank Flag Link Wed Sep 28, 2011
Hi Mom,

It's almost impossible to predict. It depends on too many variables, including your local market, sales price, listing price, the motivation of the agent, the responsiveness of the bank(s). I would plan on 4-6 months, and hope for the best. It's a rough ride lately. A townhouse in a local complex has been on the market for 1 year! It has had 4 offers drop out of escrow. Now they want a mostly cash buyer. Pretty rugged.
1 vote Thank Flag Link Wed Sep 28, 2011
one a short sale closes, how long do you have to move?
0 votes Thank Flag Link Mon Jan 28, 2013
How long is it taking for short sales to close in the Kansas City area.
0 votes Thank Flag Link Sat Jul 14, 2012
It all depends on the bank and how experience is the Realtor doing the short sale..
0 votes Thank Flag Link Sun Oct 9, 2011
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