Home Buying in 87105>Question Details

James Monahan, Home Buyer in Albuquerque, NM

I am asking the typical time to complete a short sale. I am a buyer, preapproved for financing. Listing agent supposedly has done many of these.

Asked by James Monahan, Albuquerque, NM Mon Apr 9, 2012

We have gotten to the point of waiting for "investor approval", B of A is the servicing lender, seller is 10 months in default but no forclosure. That's all I can find out. My buyers rep. hasn't done many of these that's why all the questions.

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Steve Quintana’s answer
The first question is whether you are dealing with a competent short seller. Has your seller has completed a short sale application. If so, there should be a short sale approval letter or other written response to the short sale application in the seller's possession. Get a copy of this information and assure yourself the seller is on the right track.

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.
1 vote Thank Flag Link Tue Apr 10, 2012
Mr. Monahan,

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.

Art Miller
0 votes Thank Flag Link Mon Apr 9, 2012
Thanks for the pat on the back. A call would even be better. LTM (laughing to myself... I didn't think it was quite a LOL). Take care everyone and enjoy your evening.
Flag Mon Apr 9, 2012
There is not typical time. Nothing is typical about a short sale. Make sure the agent you choose to use has experience with them and can guide you through the process. I have seen 21 days with a cash offer at a local bank and all the way through 18 months at a national bank in the last two years. The average for me has been about 4-6 months. Each deal is different and has its own unique problems, such as various lenders not agreeing to a payoff or a seller that is in the process of a bankruptcy which will all delay the transaction.
1 vote Thank Flag Link Mon Apr 9, 2012
Have you considered bank-owned or government-owned properties? They can take as little as 30 days to close. They can be priced at a bargain and can have some really great incentives.

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
Web Reference: http://www.Syan.com
1 vote Thank Flag Link Mon Apr 9, 2012
Not to slam your agent, but frankly, if you are pursuing a short sale, you really need to work with an agent that has done many of these, to increase your chances of success. Also, you need a strategy to continue shopping while waiting. Bank of America is one of the ones that take quite some time. I have a couple of offers in to them last year and it took them 5 months to reject our (full list price) offer and ask for $10K more, which made the house average price, so this buyer decided on another home. You see, the list price is just a price the listing agent thinks will get an offer from a buyer that has a chance of being approved (or at least it should be). The bank does not usually (especially BofA) give the listing agent any indication of what they will take (there are some instances where price is preapproved, or was approved for a previous offer that fell through). The listing agent would have made it clear if that was the case. Also, regarding inspections and repairs, realize that sellers in short sale situations rarely, if ever, have funds to make any repairs, and the bank will not pay for any, so inspections are usually just for your information, and are a go / no go really (meaning they are really just for you to decide if you are willing to take the property at that price in the current condition). Contact me directly for answers to more specific questions any time, no cost or obligation, of course.
1 vote Thank Flag Link Mon Apr 9, 2012
A short sale can take anywhere from a couple months to 8-9 months depending on the lender. That being said, Bank of America utilizes http://www.equator.com for the processing of their short sales. So, the process, in theory is straight-forward.....listing agent uploads completed documents and tasks as you move towards approval and closing. Some listing agents forward emails / tasks as they are completed throughout the process. The listing agent should be able to provide you an overview / screen shot from Equator as to progress. The lenders all have timelines with tasks, so missing a deadline can put you all the way back to square one. As for "waiting for investor approval", that only means the investor (holder of the note/debt) is reviewing what has been submitted. If there are no errors or missing documents then the lender will either accept, reject, or counteroffer. If they counteroffer, don't expect a lot of back and forth negotiations. Good luck and please let me know if you have any other questions.


Chris Smith, Realtor

Associate Real Estate Broker
Century 21 Camco Realty
Email: nmrealestatenow@gmail.com
Website: http://nmrealestatenow.com
CDPE - Certified Distressed Property Expert
1 vote Thank Flag Link Mon Apr 9, 2012
You'll want to work with a real estate agent who knows short sales in and out. Part of what takes so long to close on short sales, can fall ont he listing and buyer's agent. Their knowledge is critical!

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
Web Reference: http://www.Syan.com
1 vote Thank Flag Link Mon Apr 9, 2012
There is not a typical time line because no situation. It could be 30 days to 6 or more months. If there are more than one loan, the balances, type of loan, seller hardship, and more all affect the response time. Even though your agent hasn't done many, she/he can still ask for regular updates from the listing agent.
Web Reference: http://www.TerriVellios.com
1 vote Thank Flag Link Mon Apr 9, 2012
Short sales are complicated! If the property has been officially listed with a Realtor the process can take 3 to 6 months. Remember every property is different and the lender is different! I would suggest getting away from short sales if possible! If not PATIENCE it the best I can tell you!
1 vote Thank Flag Link Mon Apr 9, 2012
I have a investment home in Rio Rancho which I bought for $204k and the vaule now is from $150-160k . The property was vacant for 4 months (no renter). I owned the 1st loan $149k and 2nd loan $10k . Should I go for short sale or regular sale? I am planning to stop payment to the bank and let it go.95
0 votes Thank Flag Link Sat Apr 5, 2014
There is nothing typical about a short sale real estate transaction. One thing that is true is you are taking yourself out of the market while you wait for the lender approval which should happen before your inspection process etc. The bottom line is your opportunity cost for waiting. If you agent is not experienced, then why not request they speak with their managing or qualifying broker for some assistance and further answers to your concerns. Best of luck!
0 votes Thank Flag Link Sun May 27, 2012
Bank of America recently announced a stream lined short sale procedure. The BOA website states:

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, you’ll see several changes:

Five documents will be required for short sales initiated with an offer:

Purchase Contract including Buyer’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.

New Timeframes:

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
0 votes Thank Flag Link Wed Apr 11, 2012
Typical time? Anywhere from 3 to 13 months.

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.
0 votes Thank Flag Link Mon Apr 9, 2012
Don Tepper, Real Estate Pro in Burke, VA
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