Home Buying in Canoga Park>Question Details

Dien, Home Buyer in Canoga Park, CA

In buying a shortsale property, after submitting the offer, how long does it normally take before I know the decision of the sale?

Asked by Dien, Canoga Park, CA Fri Dec 9, 2011

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Hi Dien.

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
Rodeo Realty
Direct: 818-903-2040
http://www.AtHomeWIthSara.com
http://www.Short-Sale-Vs-Foreclosure-Help.com
Dre License #01712757
0 votes Thank Flag Link Mon Dec 12, 2011
Dien -

It varies on:
1.) Bank/lender
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.

Good luck!
CJ
0 votes Thank Flag Link Sat Dec 10, 2011
There is no """NORMAL""" in Short Sale Land. For the most part, if you see a short sale that has been on the market for 4mos+ it's usually because a previous buyer or buyerS backed out & the listing agent need to start, more or less all over again. Or it's because the listing agent doesn't know what they're doing, regardless of the "short sale expert" certificate they just bought after taking a 3hr course.

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.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors

The banks are controlling the market & controlling pricing, by controlling
0 votes Thank Flag Link Fri Dec 9, 2011
It can take anywhere from 60 days to 6 months or longer. There are many factors to consider, but one of the main ones is to be assured that there is a competent listing agent working with the bank. Make sure your agent stays in communication with the listing agent and be proactive. Expect the unexpected and be prepared to negotiate with the seller/bank. It seems as if the banks are asking for contributions from someone other than the seller's meaning the buyer or the agents will have to kick money in to close the deal. Good luck!

Maureen Petersen
DRE #: 01175394
maureen@mghometeam.com
209.968.3204
0 votes Thank Flag Link Fri Dec 9, 2011
Dien,

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, Realtor®
Certified Distressed Property Expert – CDPE®
DRE License #01494182
Keller Williams Realty World Media Center
http://www.DotChance.com
818.339.7712

WHEN YOU THINK OF REAL ESTATE...Think DotChance.com! My business thrives from your referrals!
0 votes Thank Flag Link Fri Dec 9, 2011
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