Currently there are 3 types of listings in the market:
1. Traditional sale - the owner is selling the home via a Real Estate office (straight forward deal, 30 days)
2. Foreclosure - the bank is selling the home at market value (straight forward sale, 30 to 45 days)
3. Short-sale - the mortgagee is trying to sell the home at a lost to the lender before it gets foreclosed (this will require the lenders approval of the offer, which is consider a 3rd person approval. Its a time consuming and complicated deal. Takes 3 to 9 months in average)
The fact you are buying CASH makes little difference on the short-sale since the delays are caused by the paperwork of the seller side, not the buyer. Once all the pares are in order they will want you to close within 30 days or less.
The 4th type of sales used to be the "For Sale By Owner"....but i haven't seen one since 2007.
Currently short-sales are over 50% of the market, Foreclosures about 30% and traditionals the other 20%...but it also depends on the area.Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".
Charles Rutenberg Realty
There is no clear cut answer to your question. There are many factors involved, like how far along the seller is in the short sale process, who the lender is, what kind of short sale it is. My experience with my own listings has been about 4 months from the time of the offer to closing. Paying cash is good and that should make the process go faster once the lender approves the short sale. Paying cash is also less risky on the short sale lenders part because they do not have to worry about a financing contingency on your side of the transaction. I would still expect it to be a few months from the time of offer submission to lender approval.
Do you have a particular property in mind? Are you working with a real estate agent or is this just a general questio? I would be glad to talk more in detail with you about the whole short sale process if you have additional questions. I have closed a number of short sales and have earned the SFR (Short Sale and Foreclosure Resource) designation from the National Association of REALTORs.
My name is Diane Huson and I can be reached via cell at 813-382-0999 or by email at: firstname.lastname@example.org. Hope this is helpful to you.
Best Regards, Diane Huson, Coldwell Banker
When it comes to short sale there are a lot of factors that can determine how long the process takes. It depends on how many loans the seller has and who the lender are. Some lenders are better at completing short sale in a timely manner than others. The larger lenders like Bank of America, Chase, Wells Fargo tend to get them completed faster then the smaller lenders and servicers. You also have to take into account who is negotiating the short sale on the seller's behalf. You want to make sure that person is on top of their tasks.
Fannie Mae and Freddie Mac are adopting new guidelines to streamline the short sale process. The new guidelines go into effect June 15 and would require servicers of mortgages backed by Freddie and Fannie to review and respond to requests for short sales within 30 calendar days of receipt of a buyer’s offer.
Overall the short sale process is much better then it was a year ago and seems to be getting better.
Please feel free to call or email me with any other questions you may have. I would be happy to look up who the seller's lenders are.
Sales Associate / Property Manager
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