The typical time to complete a short sale largely depends on the listing agent's familiarity with short sales, the presence of 2nd lien (possibly 3rd), if the property was bought as an investment property or owner occupant, if the seller is applying for HAFA funds, if the seller provides all the documentation in a timely fashion.
If all the docs are delivered in a very timely fashion from all parties, there is only one lien on the subject property and the BofA negotiating team is well organized this could take as little as 2 weeks to get an acceptance, counter or rejection. It is important to call once a week and find out where the bank is and knowing the questions to ask which will reveal at what stage the short sale is in and if the listing agent is treading water or making progress towards a successful short sale.
It is relatively easy to find out how well versed the listing agent is with short sales and how many liens the subject property has (easier in Bernaillo County).
It is also important to understand that if a property has an unbelievable list price... it is unbelievable. The bank will order a BPO and discover what the value is and you will receive a rejection or a counter that is in line with what they believe the property is worth. There are avenues to challenge the BPO and request a second opinion if you know your way around assessing value and the short sale process.
BOA guidelines state an answer to the short sale purchase offer will be given within ten days: http://homeloanhelp.bankofamerica.com/en/home-affordable-for
You can more direct information on short sale procedure by visiting the government website for Departments of the Treasury & Housing and Urban Development: http://www.makinghomeaffordable.gov/Pages/default.aspx.
Now that you know the original source authority for short sale administration, you can compare your situation to the rules. This is how one guages whether one is on track for a successful short sale.
For more information on bank-owned properties, go to: http://www.syan.com/foreclosures and for information on government-owned properties, go to: http://www.syan.com/hud
Syan Real Estate
Call/Text: (505) 730-8181
Chris Smith, Realtor
Associate Real Estate Broker
Century 21 Camco Realty
CDPE - Certified Distressed Property Expert
You can expect as little as 2 months (one can dream) to as much as over a year. Many factors come into play from the amount of lien holders, the cooperation of the sellers, etc. I have done BOA short sales. They can take some time and test your patience.
For more information on short sales, go to: http://www.syan.com/shortsales
Now, although the property is not in foreclosure, it doesn't mean that it can't enter foreclosure while you are all going through the process of short sale. Your agent will need to be proactive in working with the listing agent to ensure you're updated regularly with the status of the transaction and the property.
I assist my buyers at no cost because, the seller pays for my services.
Syan Real Estate
Call/Text: (505) 730-8181
Bank of America Refines the Short Sale Process
Every day, Bank of America works with agents like you to help homeowners complete short sales. On April 14, we will strengthen our partnership through an improved task flow in Equator.
The new Bank of America short sale process will enable short sale specialists to complete tasks such as document collection, valuations and underwriting at the same time, reducing the time from initiation to closing.
Before April 13, you must complete the Submit Short Sale Offer, Upload Offer Documents and Upload Supporting Documents tasks in Equator for all short sales submitted with an offer. Your file may be declined if these tasks are not completed prior to April 13.
Starting April 14, youâ€™ll see several changes:
Five documents will be required for short sales initiated with an offer:
Purchase Contract including Buyerâ€™s Acknowledgment and Disclosure
IRS Form 4506-T
Bank of America Short Sale Addendum
Bank of America Third-Party Authorization Form
We are requiring the new Bank of America Third-Party Authorization Form for short sales initiated beginning April 14.
All messaging will remain in Equator. Agents will receive a standard notice to log in and retrieve their messages.
Five (5) days to submit a backup offer when a buyer has walked
You can visit the BoA webpage with this info at: https://realestateagent.bankofamerica.com/ptff.aspx?p=251
A lot depends on the listing agent, so if he/she has "done many of these," that's a relatively good sign.
Ask your agent to ask the listing agent for any additional information or guidance.
Hope that helps.