Tdt820, Home Buyer in Arlington Heights, IL

How long does the investor usually take to approve a short sale?

Asked by Tdt820, Arlington Heights, IL Fri Nov 4, 2011

We recently put an offer in on a short sale. They already had a negotiater assigned to their property, so we were able to hear back in about 30 days. The only problem is that they came back and said the price is too low. We then submitted another offer and increased the bid by about $5k. As of yesterday our agent said it is now with the "investor" for approval. How long does this process take? I'm hoping to hear by next week. Is that unrealistic?

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9
I agree with Lew :-) Hope you used an Exclusive Buyer Agent (one who is always on your side w/o the conflicts of interest that a traditional buyer agent can have) EBA's and their companies never represent sellers - so they are always looking out for the buyer's best interests.
0 votes Thank Flag Link Mon Jan 16, 2012
Most banks respond and close with 45-60 days.
0 votes Thank Flag Link Fri Nov 4, 2011
Sound like this bank negotiating in a timely manner. I think you will get in answer within 30 days.
0 votes Thank Flag Link Fri Nov 4, 2011
It could be 30 to 45 days however it depends on the investors just like Peter told you could be 60 days 120 days the best thing to do is have your realtor verify with the listing agent constently to find out if the purchase was approved by the investor. But there's not really a time frame.
0 votes Thank Flag Link Fri Nov 4, 2011
In my experience an answer may come back from the “investor” in a week or two but can easily take longer. When the answer comes back, it may not be the answer that you want.

Short sales require patience and flexibility on the part of buyers.
0 votes Thank Flag Link Fri Nov 4, 2011
The truth is that there is no standard reply time on any of these deals. Sometimes you expect a reply in 60 days and you get it in 30 (usually, asking for more money in the deal). Other time, you think you are bidding on an approved short sale hoping for a quick response but you wait 90 or 120 days. Neither banks nor their investors adhere to any specific time tables.
0 votes Thank Flag Link Fri Nov 4, 2011
Short sales can often take as long as 3 - 4 months or more. You're in a situation where you're not only dealing with the home owner, but the bank that is serving the mortgage, at least 1 investor and possibly a mortgage insurer. You could also be dealing with a 2nd lien holder.

Lenders will have a Broker Price Opinion (BPO) performed on a property (in lieu of an appraisal) do get an idea as to the current market value of the property. Based on the BPO (market value), the condition of the house, the mortgage balance, and other factors, the investor(s) will determine the minimum net price they want for the property.

If your offer comes in below that minimum net price, it will be rejected. If you up your offer, they go through the process yet again (but this time without doing another BPO). The back and forth process in and of itself can take several months.

Your real estate agent should have prepared you for this situation before you made the initial offer.
Web Reference: http://HomeRescuePlans.com
0 votes Thank Flag Link Fri Nov 4, 2011
make it 3-6 months , if Bank feels like to get to it. And more than likely Bank will raise the price even higher with a "verbal counter" , and then 1-2 more months will go by ...
0 votes Thank Flag Link Fri Nov 4, 2011
That all depends if the property is in pre-foreclosure or not. What is the address I will check to see if is. If you want to send it privately my email is kathy.diegel@cbexchange.com

Kathy Diegel
The Peggy Cobrin Team
Coldwell Banker
Web Reference: http://www.PeggyCobrin.com
0 votes Thank Flag Link Fri Nov 4, 2011
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