Home Buying in New Albany>Question Details

Buylow, Renter in District of Columbia

Is it quicker to close a short sale or back owned?

Asked by Buylow, District of Columbia Fri Feb 18, 2011

What are the benifits short flaas of each?

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10
- Dane Mickelsen -’s answer
BEST ANSWER
I would say that the bank owned will be a quicker and easier close. It really depends on the agent that is working with the short sale, if the bank has approved the price already, and how aggressive the listing agent is. When looking at bank owned homes it really depends on what bank owns the house, but for a good rule of thumb the bank owned house will close quicker.
Web Reference: http://virtualtricity.com/
2 votes Thank Flag Link Sat Feb 19, 2011
Bank owned properties tend to close much quicker. The short sale process has improved, but it still can be a lengthy process. Its important to work with an agent that has done a short sale. This will help in the many demands and questions during the process.
0 votes Thank Flag Link Mon Nov 10, 2014
Bank Owned properties tend to close much quicker. Short Sales can be a long process. There is a difference in a possible short sale and an approved short sale. An approved short sale should move quicker but still probably not as quick as a bank owned.
0 votes Thank Flag Link Sun Apr 20, 2014
I'd prefer to work with bank-owned properties over short sales any day. With short sales, as well as most things in life, the more emotionally-invested people involved, the more difficult the process tends to be.

Hope that helps!
Hilary
0 votes Thank Flag Link Tue Mar 25, 2014
I agree, bank owned properties tend to close much faster than short sales.
0 votes Thank Flag Link Tue Mar 25, 2014
Absolutely - bank owned close much faster!

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Jun 12, 2013
Short sales should really be called Long Sales. Nothing about them is short. Bank owned is a much quicker and less stressful process, from my past experience.
0 votes Thank Flag Link Wed Jun 12, 2013
Buylow,

Without a doubt, normally a bank owned transaction is a much quicker and easier experience than a short sale. Bank owner transactions can often close with the same level of efficiency as a regular sale.

The only true benefit of a short sale is one of being the "perfect home" for the buyer.
0 votes Thank Flag Link Sat Feb 19, 2011
Bank owned homes are much, much quicker than a short sale
Bank owned homes can usually close in the 30-day ballpark.
Short sales aren't even close - you have to figure on at least 3 months with no upper limit.....if at all.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sat Feb 19, 2011
Hi Buylow,
Bank owned will generally close quicker. Banks aren’t as responsive as private party sellers, so it may not be as quick to get an answer from them once you submit an offer.
The other issue with bank owned is you don't receive a disclosure, or at least a very useful one. The bank or it's reps never lived in the house. They would have no knowledge of past plumbing problems or roof leaks.
With a short sale, you'll receive a seller’s disclosure, but have no guaranteed closing date for weeks or months. Three to six months are not uncommon wait times for short sales. During this time the bank may foreclose or make a modification available to the owner, effectively killing your purchase, rates can and will be changing along the way. If there is a major jump, you could be priced out of the home.
My general recommendation is to find a home you love and are willing to invest your money, time and life into for the foreseeable future. The longer you live in a home the better the chance you'll have equity.
0 votes Thank Flag Link Sat Feb 19, 2011
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