Home Buying in Tarzana>Question Details

Harman, Home Buyer in Tarzana, CA

On your listings, Town home is approved for short sale. So If I consider buying the property, will it take long time to close

Asked by Harman, Tarzana, CA Tue May 8, 2012

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Dear Harman,

Short-Sales are not "short" in terms of time. You can expect them to take a minimum of Three Months and it's not unusual for them to take longer (six months or more)
0 votes Thank Flag Link Fri Jun 22, 2012
Hello Harman,

If a listing is an approved short sale that means the bank has already agrred to the short sale at the published price.

The closing in this case will be like a regualr sale, as the short sale approval process is complete

Your agent should request a copy of the short sale approval letter. He/she will also wan to make sure there is not more than one lien holder. If there is more than one lien holder, you will want o see short sale approval letters from both.

If the listing is a towne home or a condo/ or community with an HOA have your agent verify that the HOA fees are paid and current. In a short sale the bank will not pay any past due HOA fees, the buyer will be on the hook fo rany past due HOA fees, which can be anywhere from a few hundred dollars to thousands of dollars.

Best of Luck to YOU,

KAwianPayne, Realtor
0 votes Thank Flag Link Thu Jun 21, 2012
.I would highly recommend to have either an attorney or an experienced short sale agent , with designation, to help you go through the process. The first step is to ask to see the letter of short sale approval, and a copy of the preliminary title report. You want your representative to compare both to see if the SS approval reflects all the demands of all the lenders of record, and if all( if more than one loan on the property) are reflected. A copy of the estimated HUD1, (closing statement from the escrow) will be helpful. Find out if the property has a Notice of Default, and or Notice of Sale recorded on it. It is reflected in the prelim. If there is a deadline for the transaction, you need to make sure you will be able to secure your loan within that period of time, and or if the lender of record (the foreclosing entity) is willing to grant you an extension. Knowing the deadlines and adhering to same is the key element of purchasing a short sale. You need to have your down payment and loan ready when you make an offer on a Short Sale. I advise my clients to go ahead with their loan and get approved subject to appraiser, prior to making a commitment to purchase a short sale. This will give you a great purchasing power, especially when you are in multiple offers, or time restraint
0 votes Thank Flag Link Thu Jun 21, 2012
Even if the short sale is approved, the bank(s) will have to review your offer and information as a new buyer. The length of the process is dependent on the bank. An offer matching the "approved" price can assist in shortening the process because no renegotiation will be needed, but typically you should still expect a waiting time to put you in place as the new buyer.
The good news is that the wait will be much shorter compared to original process since the short sale in already in progress.

Nicole Lindler
Prudential California Realty
310.694.2288
0 votes Thank Flag Link Wed May 16, 2012
I have also had "Previously Approved" shorts take longer to close than short sales with no previous approval. As the other agents mentioned 1 loan vs. 2, the actual lenders involved, how prompt your negotiator is, what program the seller is trying to qualify for (HAFA vs. traditional short sale), how long ago the approval was issued, etc., all have a HUGE impact on the process. The fastest I have closed a short sale is 45 days... averages are closer to 90 days. Some lenders will let you stay on task and substitute buyer, many do not. The one good thing about a "previously approved short" is that you know there was indeed some sort of actual hardship and the sellers will most likely be approved again.

Stephanie Hart
Broker-Associate
Forecast Realty
310-918-6856
CA DRE 01338444
http://www.hartssellsouthbay.com
0 votes Thank Flag Link Sun May 13, 2012
There is a lot of factors that make a difference on the timeframe. Is there one loan or two or more... outstanding liens, this is a townhome.. is the hoa current... Even if this is super clean, a cooperative short sale that the price is directed and approved by the lender and there is nothing else outstanding, it can still take a month or longer to get an actual written approval.

Good luck.
0 votes Thank Flag Link Thu May 10, 2012
There is a lot of factors that make a difference on the timeframe. Is there one loan or two or more... outstanding liens, this is a townhome.. is the hoa current... Even if this is super clean, a cooperative short sale that the price is directed and approved by the lender and there is nothing else outstanding, it can still take a month or longer to get an actual written approval.

Good luck.
0 votes Thank Flag Link Thu May 10, 2012
you can expect 90 days or more. really depends on which property you're referring too. I have closed short sales in less than 45 days even when they were not "approved"
0 votes Thank Flag Link Wed May 9, 2012
It all depends on many varibles. Can you give more info on the property and lienholder?

Neal Grusky Estates
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
(800) 652-1768
| Fax: (800) 652-7604
http://www.hpremiereproperties.com
0 votes Thank Flag Link Wed May 9, 2012
That is an open ended question. Some go very fast from approval....some do not. Not all approvals are the same. You need to work with a strong buyera agent who can ask the right questions to determine if this is a short sale to get involved with. There really are easy short sales. The magic is picking thru the garbage to find the golden nugget.

I have experience with easy short sales and hard ones so I can smell problematic deals most of the time.

Give me a call. 818-414-4144
Blair Thompson
Broker Associate
Sothebys International Realty, Sherman Oaks
Web Reference: http://blair4homes.com
0 votes Thank Flag Link Tue May 8, 2012
Escrows go very quickly on approved short sales. Often the bank imposes a deadline to help it move quickly.

You should have an agent representing your interests as the buyer. My team is very close and would be happy to help.

Janey Bishop
Rodeo Realty
(818)570-1144

p.s. last month our office alone did 1% of all transactions in Los Angeles County so we will help you get the job done.
0 votes Thank Flag Link Tue May 8, 2012
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