Didi,

Just make sure that your agent is getting accurate updates on the short sale process. It also helps if your agent understands the short sale process.

It can take some time depending upon the number/types of loans on the property, if there are any liens, and which lender(s) area involved. Unfortunately, this is not an exact science. Every deal is different and the timing is also different. But if you are purchasing a short sale, it is a longer process than purchasing a REO/Bank-Owned/"Regular" Sale even if you are purchasing cash. It still must go through the process.

The completed short sale package must be submitted to the lender(s) usually via fax and it may take several weeks for the lender to even acknowledge that they have received the entire package. It is then processed, assigned a negotiator, a BPO (Broker's Price Opinion) of value must be ordered, and the file reviewed. The offer price is then compared to the estimated market value from the BPO's/appraisal. The file may be presented to investors if they are involved. Then the negotiation starts!!

Please be patient....

Good morning,

A short sale listing has so many different situations that can pop up. One very important thing to remember is that is not always the bank who is responsible for the time frame of the waiting process. Yes, there are variables with an offer. How many loans are on the property? does the seller truly have a hardship in needing to sell? Etc.

ONE very important thing to consider is how experienced is the listing agent doing short sales? So many Realtors are taking listings for clients in desperate need to sell and they are doing an injustice to the seller by not having the knowledge on how to handle the short sale process. It is extremely important for sellers to have an experienced short sale agent handle their short sale. Also, sellers need to remember that all commissions for the sale are paid for by the selling bank. No commission expense to sellers.

For more short sale information please check out my blog at http://www.pennysproperties.com/blog/

Enjoy your weekend. Penny O'Brien with RE/MAX Experience

Didi,

You did not say if your cash offer was a market value offer. Buyers have the mistaken belief that a bank will accept a low ball offer because it is all cash. Banks tend to ignore low ball offers.

If the listing agent submitted a COMPLETE short sale package to the bank, have her ask the loss mitigation specialist when she can expect a response. If it is incomplete, that may be the problem. Loss mitigators are overwhelmed and do not have the time to chase down missing paperwork.

Be patient. 1 month is not a lot of time in the world of short sales.

Every bank may have a different answer, but be prepared to wait and wait and wait. I wrote an offer in March and 2 in April and the bank still hasn't responded to the listing agents requests and we are in October. In my experience, I am pretty confident to say you will be waiting an average of 4 - 6 months. But Bobby is right...if you see something else you would rather have, kill the deal and move on. The short sales are great deals, but one must be patient and hope the listing agent doesn't sell it from underneath of you (Had that happen too)!!

keep waiting, and keep looking. if you find something you want to offer on, you can make it subject to cancellation of previous contract. then kill your first deal.

I have waited up to 3 months for an answer from a bank on a short sale. Hopefully it will not take that long. Does the person working with the seller call and talk to someone at the bank and press them for an answer? If the seller does not have an agent working for them there are companies that can help with the negotiation process. Call a local title company for recomendations.

Hi Didi,
You will get the correct answer from your listing agent. Every bank has a different schedule.
Good Luck :)