Home Buying in 02920>Question Details

Rae, Home Buyer in 02857

How long does it usually take to close on a short sale?

Asked by Rae, 02857 Thu Jul 1, 2010

We signed the sales in purchase agreement, and the appraiser from the bank came to look at the property. The realtor says we are still waiting to hear back to see if the bank accepts the short sale offer. We have been waiting since mid March. It is now July 1st. When we call to ask the status, we only get told "nothing yet" or "still waiting on the bank" and it is getting extremely frustrating especially since we are the tenants and although we signed a sales and purchase agreement, the house still shows up on websites as for sale and people think nothing of driving over and getting out of their cars and looking at the house. I even had to tell one guy I would call the police if he wouldn't get off the property, he was insisting on coming in the house. I never knew people just showed up when there was no open house. I would like to have an idea of how much longer this is going to take. How long do banks usually take to accept or decline an offer?

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7
Sorry to hear that, depending on the bank or banks involved it can take as little as 45 days or as long as 1 year. I seen cases that go shorter and some go longer. It varies from transaction to transaction. Good Luck.
0 votes Thank Flag Link Tue Nov 23, 2010
Hi Rae,
I am so sorry that you are having to go through this gruleing process of a short sale... I wish I could offer you some words of comfort, unfortunately, a short sale is nothing but UNcomfortable! The wait is stressful. The bank has a process they have to go through to establish if they will accept your offer for purchase. Banks are getting quicker to do this in my opinion, but not much. I have seen them accept in as little as a week and as long as 6 -7 months. I would keep an eye on other options that may come along as a "back up" option and maybe something will pop up that isnt a short sale... I wish I could offer you words of comfort but in this situation there aren't any...
Wishing you speed in your transaction! :)

Erin Diaz, Broker ~ Owner
0 votes Thank Flag Link Mon Jul 19, 2010
Hi Rae,
I am so sorry that you are having to go through this gruleing process of a short sale... I wish I could offer you some words of comfort, unfortunately, a short sale is nothing but UNcomfortable! The wait is stressful. The bank has a process they have to go through to establish if they will accept your offer for purchase. Banks are getting quicker to do this in my opinion, but not much. I have seen them accept in as little as a week and as long as 6 -7 months. I would keep an eye on other options that may come along as a "back up" option and maybe something will pop up that isnt a short sale... I wish I could offer you words of comfort but in this situation there aren't any...
Wishing you speed in your transaction! :)

Erin Diaz, Broker ~ Owner
0 votes Thank Flag Link Mon Jul 19, 2010
Hi Rae,

I feel your frustration! Unfortunately short sales are currently dominating the marketplace and most people have no choice but to make offers on short sales despite their very long process. The typical short sale process is 3 to 6 months depending on how many banks are involved and what kind of negiocator is being used. I have heard of them going longer but not experienced it. Some agents negiocate themselves while others hire a pro to be on the phone almost on a daily basis. It takes persistance and patients to get the short sale done. These are some of the questions you can ask your agent if your tired of the "nothing yet" response.

As for te people that keep showing up, it is a property for sale and they will continue to come until the deal has been agreed upon by all parties (including the bank) in the transaction. You'll have to grin and bear it for now. You can also check your lease for a clause about when the owner wants to sell.

Hopefully this helps, good luck!!

Chris Blasic
Realty World & Associates
0 votes Thank Flag Link Wed Jul 14, 2010
Short sales are like pulling teeth. It amazes me how banks drag their feet when it's costing them more and more money each day. I do believe a negotator is VERY important. It serves two reasons: 1. releaves the stress on you and 2. They are dedicated to making all the phone calls to the bank. They also know who to contact the first time.
Short sales, depending on who the bank is along with how may loans are out, can take from 2 months to 1 year. I have closed some as far as 30 days but also had some extend out to 1 1/2 years. Getting the right paperwork in together right away and to the correct contract person is key on how fast process flows.

Lynn Forlini
Supreme Realty, LLC
0 votes Thank Flag Link Wed Jul 14, 2010
Umm. Do you have your own Realtor assisting you on this?

How long does it usually take? 3-5 months for many of them. But I've known short sales to take 10, 12, 14, or more months.

You say: "although we signed a sales and purchase agreement, the house still shows up on websites as for sale." Well, it still is for sale. It's not a ratified agreement until both parties sign and the bank agrees to it. Until all parties agree and all contingencies are lifted (the main contingency in this case is the bank's approval), it can still be shown.

You say: "people think nothing of driving over and getting out of their cars and looking at the house." Well, it IS for sale.

You say: " I even had to tell one guy I would call the police if he wouldn't get off the property, he was insisting on coming in the house." Check the terms of your lease. You were probably within your rights, but your lease may permit potential buyers (at least upon reasonable notice) to inspect the property.

You say: "I never knew people just showed up when there was no open house." Oh, yes. All the time. It's incredibly rude and intrusive, but they do. If there's a sign up in the yard, that's almost like an invitation to some people to just walk up and knock on the door. FSBOs probably have it happen to them even more than sellers using agents.

You ask: "I would like to have an idea of how much longer this is going to take. How long do banks usually take to accept or decline an offer?" As already noted, it most likely will be another 1-2 months, and could be substantially longer. On the other hand, you might get lucky and get an answer back in a few days. And, unfortunately, there doesn't seem to be any way to speed up the process.

Good luck.
0 votes Thank Flag Link Thu Jul 1, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
This is typical of a short sale situation. The situation becomes even more complex with the new guidelines some banks have for selling a home to the occupant. Trust me this is very frustrating for Realtors as well.
0 votes Thank Flag Link Thu Jul 1, 2010
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