If you have to go with a short sale, realize that it could easily be 3to 4 months before you know if you'll get the home. If you can't do that, forget a short sale.
Harsh, but true.
If there is just one lender it may take less time. It really helps if the listing
agent has done a good job preparing the lender and owner. So there is
no yes or no answer for you. Good luck. '
Coldwell Banker Burnet
A licensed Mn. Realtor
Our team is located in San Diego (working the Southern California). In our experience, we have had a bank respond in 4 weeks or 6months. There are many factors when negotiating each short sale. Every home is different. Ask your realtor to research each property and ask the short sale negotiator/listing agent the right questions that you may have before you make an offer. This will help make your decision making process when moving forward with a property. Good Luck!
Concerning foreclosures, there should be little to no delay. The exception would be if the seller/bank placed an offering period restrictions for owner occupant and or second home/investor purchasers. For example Fannie Mae foreclosures won't except offers from anyone until the 5th day on the market. On the 5th day owner occupants are the only ones able to offer. On the 15th day the seller opens the property to accept second home/investor offers.
Most lenders and servicers have improved their approval timeframes, but it is possible to run into situations where it can take much longer than 120 days. Short sales can be a good opportunity if you can afford to wait.
If the bank has approved the short sale it should be faster but sometimes homes are put on the market without even being approved as shorts sales. When this happens, the seller needs to present an offer to the bank (from a buyer) and start the procedure from step 1. This might take months or not close at all.
if you need some assistance in short sales dont hessitate to contact me.
Also surprisingly enough the short sale dept and the foreclosure dept do not communicate so sometimes while an owner is going thru a short sale and a buyer has an offer in one day an owner can receive papers and their home is foreclosed on. This is unfortunate and sad.
If you are considering a short sale please be sure you are working with a licensed experienced agent who
explains all the details to you.
Good luck. If you can wait, they usually are a good deal.
With that being said, if you want to list your home as a SS, make sure your dealing with a Realtor who knows the negotiation process and knows how to do it. If you're wanting to buy a SS, make sure you also have a good Realtor who looks up comps and goes in at a fair price. Non approved SS can take anywhere from a week to months. When you write your offer make sure to have your Realtor write in the purchase agreement that you will give your deposit upon BANK APPROVAL not sellers approval. That can tie up your money and will be cashed. The bank will open escrow and that money will be sitting in an escrow account tied up so if it takes months for bank approval, that money is taken out of your bank acct. If you write it that you will give the deposit check once you have BANK APPROVAL then you can still look at other properties and your money is not tied up. That way if a standard sale or something else comes along you like better and your offer is accepted, then you have that money to open escrow on the accepted home and can walk away from the one you've been waiting on. However, your Realtor will need to let the other agent know you've been accepted on another one so they can let the bank know. Hope this information is helpful.
Foreclosures can also be slower because of response times but they are usually much quicker than short sales.
Good luck in your search!
Short answer? Oh, God, YES it can take months!
If you're in a hurry to close, don't write an offer on a short sale.
Buy a regular sale or a foreclosure.
But if you have time to spare, and you have a mountain of patience and perseverance, and you are looking for a good deal, then by all means!
The timing varies from lender to lender. That said you do indeed need to be patient. Remember...you are dealing with an emotionless entity that has NO motivation to go anywhere .They are acting on the whim of their bean counters, auditors, accountants, stock holders and management policies. It's just the way it is.
If this kind of situation isn't for you then ask your Broker to only show you "traditional" sales and find something that works for you.
In my market bank sales are about 50% of the market so you still have a lot to look at.
Your question was duplicated on our site, and you can review the additional answers you received via the link below.
Some of the factors to consider the length are; is the negotiator (Listing Agent or Attorney) experienced; how many loans/liens are on the property; whether the loan is owned by a lender or just serviced by a lender. If it is serviced then you can automatically extend by 30-60 days. Sometimes even having all the answers don't get you closed as quickly as you would like.
Working with your buyers agents to obtain as much information as possible from the listing agent will help you to better understand the length of time it takes to close the deal.
Keller Williams Realty Integrity
If you can afford to wait for a while, then a short-sale purchase might be a good option for you. If otherwise, then a short-sale purchase might not be for you.
So yes I agree with everyone else. Hopefully you have a good buyers agent that can tell you if this will be a waste of time or not, and hopefully also has experience listing short sales.
short sales take a long time.
Some banks work faster than others.
Especially if the owner has two mortgages on the property.
Make sure to find out who's handling the short sale...??
Very important, preferably a lawyer..