Home Buying in 90210>Question Details

joeson3, Home Owner in 76201

In a short sale, how much time does it take between the appraisal and the closing?

Asked by joeson3, 76201 Mon Dec 3, 2012

How long should a seller expect to wait, on average in a short sale, if a bank's (or lender's) appraiser would come today for the sale to close? if the answer isn't really definitive what is the usual range? 1 month to 3 months, or..?

Also, is the same day the bank closes the same day the seller can move?

thank you so much!

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7
Jane Peters’ answer
The buyer's appraisal has nothing to do with the length of the short sale per se. The length is due to the wait for the seller's lender to approve the sale. Once that is done, then the buyer will start the loan process which effectively should involve an escrow of around 30-45 days. That is the quick version.
Web Reference: http://www.homejane.com
0 votes Thank Flag Link Mon Dec 3, 2012
Joe, I have not seen where a SELLER'S LENDER will allow the SELLER to occupy the property after the closing (as mentioned below), but I suppose it could happen. However, I don't think the SELLER'S LENDER would think too highly of it. Some actually require the property to be "owner occupied" (i.e. no investor-buyers), therefore it cannot be leased.

The timing of the approval and closing typically depends on the SELLER'S LENDER. The SELLER can move out anytime they want, on or before the closing date. The closing date deadline is specified in the approval letter of the SELLER'S LENDER and is usually 30 days or so after the approval letter is issued which is typically within 30 days after the BPO is ordered.

So, based on my recent experience with several banks including HSBC, BofA and WF, the answer to your question about how long between the SELLER'S LENDER BPO and the closing date is typically 45 to 60 days. (During this period after the approval letter is issued by the SELLER'S LENDER, the buyer gets their loan approved which includes a separate appraisal of the property engaged by the BUYER'S LENDER. If the BUYER'S LENDER is unable to close by the closing date deadline specified in the approval letter, then an extension must be requested and approved by the SELLER'S LENDER. This could delay the process.)

Brent Rice, SFR and Top Recommended Broker
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com
0 votes Thank Flag Link Tue Dec 4, 2012
Hi Joe,

Once the bank does the appraisal, you are typically about 3 weeks away from an approval (on average). However, once the bank approves the short sale, the buyer will still have another 35-40 days to close escrow.

As far as the time when a seller can move, that is all contingent on the terms that you have agreed on with the buyer in the purchase agreement. You might agree to move out 72 hours before escrow closes, or you might agree to move out of the property sooner. In some cases, I've seen buyers agree to do a lease-back to the seller for an additional month. So it all depends on what the terms are in the purchase agreement. Yes, you need to make sure you hire an experienced real estate broker who can help you navigate through this process.

If you are looking to do a short sale, please let me know. I've closed about 20 of them.

Thanks!

Andrew G. Belcher
CA. Broker Lic. 01707173
468 N. Camden Dr.
Beverly Hills, CA. 90210
805-587-6577
805-620-3777 fax
0 votes Thank Flag Link Tue Dec 4, 2012
You should be asking your agent these questions...definitely!.

Short sales can take anywhere from 90 days to a year...and not all short sales are approved. They are tricky business and often leave buyers frustrated.

Generally speaking, you get keys when the home records in your name.
0 votes Thank Flag Link Mon Dec 3, 2012
You have a few questions here that should be addressed by the agent you see working with (if you are). Only they know the contract as far as dates go, approval letters and the contract. Usually 2- 3 weeka after appraisal to close, but then again it depends on the short sale approval date and what you have on contract. Seller could wait any where from 2-4 months... depending on who their bank is and if there is a 1st or 2nd. Selller could move out the same day as closing but than again this depends on how you and your agent wrote the contract.

James
0 votes Thank Flag Link Mon Dec 3, 2012
We're here for you; we enjoy helping people, but,
These are simple questions for your Realtor,
Why are you not asking them?
Are you not believing them?
0 votes Thank Flag Link Mon Dec 3, 2012
There are 2 steps in a short sale- 1)Having the short sale lender approve the short sale 2)Escrow or Closing. If the seller's lender is doing their appraisal of the property, then you probably have maybe another 3 weeks or so until they respond to the offer. It may vary. If there is only 1 lender, that it is usually less time compared to having to get approval from 2 different lenders (1st & 2nd loans). It's about 45 days+ for short sale approval from the time that the short sale process is started with the lender.

The day that the seller moves depends on what you agreed to in your offer. It could be the same day of closing or an extra 1,2,3 days after closing.

Sara Mehrpouyan CDPE
Short Sale & Foreclosure Specialist
Rodeo Realty
Direct 818-903-2040
Dre License #01712757
0 votes Thank Flag Link Mon Dec 3, 2012
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