Home Buying in 60030>Question Details

Jfinsup1, Home Buyer in 60030

Short Sale Estimated Time Frame

Asked by Jfinsup1, 60030 Sat Aug 28, 2010

I have been in the process of purchasing a short sale in Haniesville, IL. My offer was accepted by the seller then sent of to the bank. 2 weeks ago the bank ordered a BPO and my realtor informed me that the BPO was sent to the investor with our offer with no questions and was told that this was good news meaning our offer must have been decent (we offered the full listing price -- not saying that is what the bank wants). My question is on an average how much longer will it take to get a yes, no or counter offer? Also the seller has 2 loans on the property with the same bank -- even if this time around the bank accepts it will I have to go through this whole process again on the second mortgage even if it is the same bank?

Help the community by answering this question:


Talk to your agent and have him/her follow up with the listing agency to help get answers to your questions. There is no set timeline for the bank to respond but they do have someone assigned your file and the listing agent can communicate with that person. They will not discuss anything with the selling agent unless they are one in the same.

All the best,

Gary Geer
Results Realty USA
0 votes Thank Flag Link Tue Oct 14, 2014
Our short sale from begining to end -- from the day we made our offer (mind you the seller had 2 mortages but with the same bank) took about 2 months and 3 weeks. We were expecting a long wait but our agent and the sellers agent were very good about making sure all the paper work was submitted correctly to the bank and following up. The bank accepted our offer and also paid for our closing costs. All in all the experience was great considering we were expecting alot longer of a time frame.
0 votes Thank Flag Link Mon Apr 1, 2013
Hi Bob, while this question is old, it has very pertinent information that a lot of consumers would like to review.
0 votes Thank Flag Link Mon Apr 1, 2013
This question is from 3 years ago.......
0 votes Thank Flag Link Mon Apr 1, 2013
Yes. We closed in less then 3 month from the date we signed our offer to the seller/bank.
0 votes Thank Flag Link Sun Mar 31, 2013
Did you ever close? 2nd loan i bet was a problem
0 votes Thank Flag Link Sun Mar 31, 2013
Hi Jfinsup,
How's your short sale moving along?
To answer a coupe of your questions, usually the second loan will be negotiated first, that way when the figures get back to the first mortgage holder they will have a better idea what will be their bottom line. It is a little easier that both loans are with the same bank, but still no guarantee of success.
I am starting to see a lot of short sales taking only 30 to 60 days to complete. From your questions hove it sounds as if you have had some good counsel from your agent and you are very educated in the process.
Hang in there! Short sales are moving along nicely these days!
0 votes Thank Flag Link Mon Jan 23, 2012
Hi Jfinsup1-
To understand the short sale process, please know that generally short sales take 4 months, if not longer in total processing time. If the Seller is being cooperative, and the listing agent knows how to manuever a short sale, and there is no outsourced negotiation company, and the attorney is well versed on the topic as well, the process will take less time. Generally, both negotiations occur at the same time, however, the 2nd lien holder will place their file on hold, until the payoff value from the first is stated. It will be at that time, that the 2nd lien holder will begin negotiating for the 2nd lien. But, at no time, should you ever think that the short sale process will go through to completion unless you get everything in writing.

Hope that helps! Good Luck!
0 votes Thank Flag Link Thu Dec 9, 2010
Good news that both loans are with the same bank, however it probably is two seperate divisions and don't assume it will be a slam dunk.

I have seen repeatedly that the 2nd lien holder changes their mind last minute and can surprise a deal at the closing table. Get verification from the primary lender that in fact the 2nd lien holder is satisfied with the amount they are getting at closing and the 2nd mortgage might still pull some shenanigans. My anecdote goes as follows...All is good, approved and set, and then the 2nd mortgage decides they want $5,000 instead of $3,000 on the $10k 2nd lien the day before closing. Buyer is then put in the position of having to bring an extra $2k cash to close on that day.

My suggestion is don't plan on moving in on closing day and taking possession with movers etc. The 2nd lien holder has a lot of power as a spoiler and often that is the only way they can recover some of their loss. If you are getting a spanking good deal, it might be worth it to assist the seller in paying off the 2nd lien differential to keep the deal together. Have a really good real estate lawyer, not a divorce or DUI attorney, but someone that does this day in and out.
0 votes Thank Flag Link Thu Sep 30, 2010
As others have said it really depends on the bank. A time of 3-4 months though just to hear back is not uncommon. So much depends on the seller and the sellers agent and attorney in these situations. If the sellers, their agent and their attorney know what they are doing and get everything they need to get to the bank quickly, it can be done in about 30 days. Otherwise, you're probably looking at months. Even in everyone does their job to a "T" the bank can still be so backed up they take months to make things happen. Good luck and keep looking at the same time so that you have a back up plan.

Mike Stodola
0 votes Thank Flag Link Sun Aug 29, 2010
Patience will be your best ally right now. In your situation, I remind consumers that they are dealing with a "non-entity"... there are no emotions involved, no seller needing to push thru the deal, and no way to facilitate the bank into hurrying. Stay in communication with your Realtor, they will do their best to get you updates. With the number of short sales and foreclosures on record, the process is maxed out. In our recent short sale representing a buyer, the bank finally looked at our contract 3 months after it was accepted- which was the week of our closing date. We closed 3 weeks later.
0 votes Thank Flag Link Sun Aug 29, 2010
Answers below are correct, on average. But not everything's average. It could still take months. Or more. And, as already noted, even though the second is with the same lender as the first, that--surprisingly--doesn't always help.

Good luck.
0 votes Thank Flag Link Sat Aug 28, 2010
Don Tepper, Real Estate Pro in Burke, VA
30 days to several months is correct and we have seen shorts sales approved by the holder of the 1st mortgage and denied by the 2nd mortgage holder even when it's the same bank becuase the loans were sold to different investors.
0 votes Thank Flag Link Sat Aug 28, 2010
Best guess - two weeks to two months for each of the loans. (1 month to 4 months total).
Having both loans with the same bank often does not make much difference. Even if the loans originated with the same bank, they may not still be witht the same bank. Or if the bank is a larger bank, the loans are handled by different departments with different responsibilities and accountabilities. If you are going to bid on a short sale with two mortgages you need to be prepared to wait 2-4 months to get a final answer--and understand that it is a gamble and there is a chance you will need to start over.

Good luck to you in your efforts.
0 votes Thank Flag Link Sat Aug 28, 2010
It honestly depends on the bank. That's important to know here in order to give a better idea. But the "average" time could be anywhere from 45 days to 6 months.
0 votes Thank Flag Link Sat Aug 28, 2010
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