The time that it takes for a response from the short sale lender on your offer varies. It depends on if there is only 1 loan or perhaps there are 2 loans from 2 different lenders. If there are 2, then it will usually take longer. Also, if the short sale was previously negotiated with another buyer that fell out for any reason, there is a possibility that it may take less time. The average time for a response could be 45 days or more. Good luck.
Sara Mehrpouyan CDPE
Dre License #01712757
It varies on:
2.) Whether or not seller has completed paperwork and updated if necessary.
3.) How many loans/liens are there?
4.) If there is an HOA involved.
5.) If the seller has other liens unsettled like chile custody, tax, or the like.
6.) if the mortgage is a portfolio lien (held by the bank/lender) or an investor lien (sold to 3rd parties)
7.) Has the loan/lien been discharged?
8.) Does the short sale offer qualify for HAFA?
9.) Is the listing agent experience, organized, diligent, communicative, and polite?
10.) Is the buyer's agent (now or previous) setting proper expectations with AS IS, market value, and timeline?
The ones I left out are simply humans on the processing side at any point in the transaction. Short sale volume is high and many times one hand does not know what the other is doing. Paper work goes missing.
I have had short sales approved as quickly at 3 days (no joke) and as long as 9 months (in early 2008 when no one seemed to get it and banks were being bought/sold a lot). My average is about 35-45 days for complete approval on 2 loans and an HOA. But it very situational dependent.
Ask your agent to find out as much about the short sale situation as they can. That will help you understand the complexity but does not predict a timeline.
Not every bank just lets the listing agent start off where they left off, the stupid people at the banks do make us start all over again when a new buyer steps in. Some banks are taking the hint & will allow a new buyer to step in when the other one walks away if this occurs within 2-3wks.
Yes, I do refer to the banks as stupid. But then again, I digress, the banks do have a plan, they CAN'T make it look "too" easy for short sales to be accomplished or else more homeowners who are underwater will throw in the towel on their loan mods (which aren't getting approved AnyWay) & the amount of short sale requests will go up.
If you don't believe this statement, take a look at how many properties the banks are holding onto & NOT allowing to go to REO sale, i.e. Shadow Inventory.
Much goes into pre-qualifying the seller & the listing agent, is the seller motivated to complete the short sale & is the listing agent competent to do so?
Shoot me an email directly, if you have any questions, I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors
The banks are controlling the market & controlling pricing, by controlling
DRE #: 01175394
It can take a day (VERY rare) or it can take months. Buying a short sale property can take some patience but can be rewarding in the end!
Dot Chance, RealtorÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
DRE License #01494182
Keller Williams Realty World Media Center
WHEN YOU THINK OF REAL ESTATE...Think DotChance.com! My business thrives from your referrals!