Home Buying in Bayville>Question Details

Lynne, Home Buyer in New Jersey

How long does or should a Quick Sale take if paying Cash?

Asked by Lynne, New Jersey Mon Oct 4, 2010

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Lynne,
I am going to assume you are talking about "short sales" in which case they are many times anything but short. As for paying cash, unfortunately that will really not speed things up very much when it comes to the negotiating of the short sale. The bank will be reviewing the SELLERS financial situation as well as the "fair market value" of the home to ensure they are not losing a significant amount of money based on today's values (not the loan value). There are also other factors that will help to determine the speed at which a short sale is processed (i.e. FHA loan, Fannie Mae Loan, Bankruptcy, if seller is in default or not, how many loans or involved, homeowner's associations fees in arrears, PMI company involved, experience of listing agent, attorneys involved, which lender is processing the short sale).

As you can see there are a lot of factors and as a buyer you are most times in the dark while the short sale is processing. For that reason when buying a short sale it is IMPERATIVE that you have a Buyer's Agent and an Attorney working with you who are extremely knowledgeable on short sales as well as with the ways to protect you while the short sale is being negotiated. I am a CDPE (Certified Distressed Property Expert) and together with my team I have successfully closed over 37 short sales over the past few years alone. Not only can I advise you during a short sale, but I can also advise you ahead of time on which short sales you may want to avoid. Feel free to call me or e-mail me if you would like to speak further.

Thomas Zdanowicz
Broker-Associate
"THE OCEAN'S SIX GROUP"
http://www.osmls.com
ReMax Real Estate LTD.
C. 732-644-9084
O. 732-920-1900
E-Fax. 888-466-2248
E. tzhomes@yahoo.com
NJAR Circle of Excellence Award Winner '06-'08
Web Reference: http://www.osmls.com
1 vote Thank Flag Link Mon Oct 4, 2010
I assume you mean "short sale"...which is a misnomer. The process may or may not be short at all.
The short refers to the fact that the seller owes more money than they can sell the house for, therefore the payoff to the bank on closing will be "short" funds.

Briefly the process goes as follows:
1) the seller (or their agent) sends the bank a signed contract of sale and tons of paperwork, including a letter from the seller requesting approval of a short sale and the reason why the seller is requesting one (called a hardship letter)
2) bank reviews the contract and paperwork. They sends someone out to do what's called a BPO (broker price opinion) to determine the actual fair market value of the house. WIthout a good agent on the sellers side prodding the bank, this can take months. The bank eventually reviews the BPO and then will either accept, reject or counter-offer the offer price. Again, without constant contact with the bank this can take time too.
3) Once the sales price/contract is approved, typically the bank gives the buyers 45 days from approval to close the house.
Cash deals can close faster because there is no need to obtain a mortgage, but the bank will not accept a sale contingency (i.e.: you need to sell your house to use the proceded to buy a short sale house)

Bear in mind that a short sale is usually an as is sale, so it's on the buyer to pay for an inspection, but don't expect the bank or the seller to do any major repairs.
0 votes Thank Flag Link Tue Oct 5, 2010
It will depend on how far along in the process the short sale seller is. It will also depend on how experienced the real estate agents are with short sales. A short sale can close as quickly as 30-45 days after the bank gets the contract, providing the sellers and buyers have all the documentation needed.
0 votes Thank Flag Link Tue Oct 5, 2010
If you mean a "short sale": Typically 3-6 months. Paying cash doesn't save any time. The holdup is waiting for the lender's approval.

A conventional sale can occur in perhaps 7 business days (the quickest I've heard of is 4 days).

Hope that helps.
0 votes Thank Flag Link Mon Oct 4, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If you mean how quickly can a "normal" transaction (not a short sale) close. You can do it as fast as 10 days or so depending on the title company. You do want to allow some time, however, to have a home inspection done and time for responses back. Quick is not always best!
0 votes Thank Flag Link Mon Oct 4, 2010
Do you mean a short sale--if so do keep in mind that short sales are by no means fast sales, unless already pre-approved by the lender--there are no set standards of time, and some lenders are quicker than others, no matter, cash or mortgage--if two banks are involved, expect a little more time--what is your agent suggesting......
0 votes Thank Flag Link Mon Oct 4, 2010
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