Home Buying in Clinton>Question Details

sharp.kirsten, Home Buyer in Clinton, MD

How long usually for a short sale?

Asked by sharp.kirsten, Clinton, MD Sun Aug 25, 2013

Hello everyone. I wanted to know how long does a short sale usually take? Ive heard 101 scenarios but Im just really curious. I just had my offer accepted from the seller on the 10th of August and was just curious about how long the lender could take to approve it (lender is Green Tree)????

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It really depends on the lender and the seller. I recently had one approved in about 2 weeks. The key is making sure the ENTIRE short sale packet is submitted to the lender by the seller. The other key to success is having an agent who is familiar with the process and maintains regular contact with the lender's loss mitigation department. As with most things...the squeaky wheel gets the attention!
0 votes Thank Flag Link Thu Oct 17, 2013
Great question! When I am listing a short sale I ask that the buyer agree to 150 days or 5 months to allow us time to work with the lender. That being said, I've had shorts sales approved in less than 30 days and I've had two that took a year to push through. Much depends on the listing agent, seller, negotiator and which bank/banks are involved.
0 votes Thank Flag Link Thu Oct 17, 2013
Hi,

You've already received some great information. I'll add by telling you that Greentree does not have a great reputation for Short Sales. Here are a couple of things you can do or ask to help you determine if it's worth it to stay in the deal.

1. Know your contract details. - It is very important that you are aware of when contingencies in your contract expire. Because short sales can sometimes take a long time, I suggest that you either be prepared to wait how ever long it takes or determine now how long you're going to wait. This determination can save time for everyone involved.

2. Who is negotiating the short sale? - By now you should have received an update from the negotiator or your Realtor as to the progress of the short sale.

3. Continue to keep your lender updated on your financials. - After waiting to finally get a short sale approval, one of the last things you want to hear is that your lender is not ready.

4. Are you deciding to get an inspection now or waiting until later? - This is an important consideration to make in the beginning. What if you wait for 4 months, get the approval, do the inspection, only to determine that because of what was found you no longer want the house. By then,
you probably could have found a new house, had new furniture, the housewarming and more! ;)

5. Keep your eyes on comparable sales. It's a challenge to be under contract for 4 months and during that time learn that 3 other homes sold for $35,000 less than what you're under contract for on an extremely similar home.

I hope this helps!

Wishing you the best,

Tyra
0 votes Thank Flag Link Mon Aug 26, 2013
I have got them approved in as little as 30 days. the average is 60-75 days. The key questions to ask is if the seller was approved to do a short sale, if the bank approved the price prior to placing it in the market . The keys that could hold up a sale is if the home is in foreclosure, if there are liens on the home, if there is a second mortgage and who the negotiator is. A professional negotiator can move things along faster. make sure your buyer agent stays on top of it to push them along
0 votes Thank Flag Link Mon Aug 26, 2013
I have gotten short sales completed in 30 - 60 days with an 80 - 90% success rate! Time and time again! If it is taking longer than that, the parties involved do not know what they are doing!

Ask me how!

Sincerely,

Catherine Purcell
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
cell 202 573-6035
catherinep@fairwaymc.com
0 votes Thank Flag Link Mon Aug 26, 2013
Once your offer has been accepted by the seller and sent to the lender, it could take anywhere from 3-18 months or more before you settle on this property. Your agent should have explained the short sale process to you before you decided to make an offer. That is the downside of a short sale, it depends on how long it takes the lender to work thru the process.
0 votes Thank Flag Link Sun Aug 25, 2013
Once your offer has been accepted by the seller and sent to the lender, it could take anywhere from 3-18 months or more before you settle on this property. Your agent should have explained the short sale process to you before you decided to make an offer. That is the downside of a short sale, it depends on how long it takes the lender to work thru the process.
0 votes Thank Flag Link Sun Aug 25, 2013
Hello,

There is probably 1000 different scenarios. A short sale can take anywhere from i would say 30 days to year. A number a factors include has the seller submitted all his/her paperwork to the lender, has the BPO been order, hardship letter, etc.

If Green Tree/lender has already approved number that they are willing to sell the home for i.e. $200,000, then it may go faster and move very similarly to a traditional sale.
If there is a second, third, or fourth lien, this could complicate the process even further and potentially extend the process, because you will need approval for all lien holders to proceed to closing.

good luck
0 votes Thank Flag Link Sun Aug 25, 2013
A short sale can take from 2 weeks to 6 months or longer. It depends on a number of things such as whether the seller has submitted all the documentation required by their lender. A broker price opinion will be ordered by the lender and that could take 2-3 weeks. If the bank has had a previous offer, it may be that most of the paperwork is completed and the banks negotiator just has to decide if your offer if enough to satisfy their bottom line or not. If not, they will make a counter offer. Sometimes, if you are lucky, the bank gives the minimum amount they will accept. Then, all you have to decide if that number works for you. Perseverance is the key, if you have found a great house that you can wait for.
0 votes Thank Flag Link Sun Aug 25, 2013
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