Home Buying in Sun Valley>Question Details

Vicky, Home Buyer in Burbank, CA

We have an offer at a short sale with B of A. Does anyone know what is the bank's lead time lately? Thank you!

Asked by Vicky, Burbank, CA Thu Nov 3, 2011

We submitted our offer in September, now we are just waiting for the negotiator to received the current homeowner BK discharged (one more week). Just wondering once, the negotiator receives it, how much longer should be looking at with time. Thank you!

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Vicky:

B of A start to finish is 30-60 days. Of course, much depends on the listing agent/negotiator. If you don't push at the right times it can take twice as long. You know the old saying about the squeeky wheel, right?

Also, B of A traditionally issues a conditional short sale approval letter when the seller has filed BK. I have not seen them hold up the approval letter, awaiting the discharge. They will even close without a discharge if the property is removed from the Bankruptcy Estate (which requires the Trustee to abandon the property or the court to approve removing the property from the estate, or maybe both, I am not certain). Anyway, you should be asking about a conditional approval letter. Perhaps it is not the bank that is waiting for the discharge, but the agent/negotiator. I see this happen often when they are not experienced with BK or the way B of A handles a BK.

So have your agent call the listing agent and push a little. It won't hurt and it might just speed the process up a bit. Good Luck and Dare to Dream.

Shel-lee Davis, QSC®
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RE/MAX Palos Verdes Realty
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0 votes Thank Flag Link Sat Nov 5, 2011
I am seeing 45 - 60 days as well. They do seem to be getting quicker. B of A has been making some changes to facilitate a faster turn time. One of these recent changes was to accept a substitute buyer with out having to go back to square one for another full approval

Good Luck!
0 votes Thank Flag Link Thu Nov 3, 2011
With BoA, your timetable should be about 45-90 days. Depends on how quickly their questions get answered, if everything is okay with the title, etc. But, a good estimate is a little over 60 days. (If you have things "come up" plan for it to take much longer). I had one that was not BoA and their was a problem with the title and the bank made the title insurance company cover the damages before closing, it took 14 months. Not to scare you, but it is important to stay on top of the issues...the seller's agent in that transaction did very little to get the deal closed. So, stay ontop of your agent and make sure the are in constant communication with the other agent.
0 votes Thank Flag Link Thu Nov 3, 2011
Vicky,

There is no certainty in the "short sale" market in terms of time required. We've seen it all! From closing in three weeks to not closing at all.......

Unfortunately, unless you have a "pre-approved bank asking price" you can expect this to take from 3-6 months.

Good luck,

Bill
0 votes Thank Flag Link Thu Nov 3, 2011
From the start to getting an approval it should take no more than 60 days. The short sale negotiator doesn't necessarily need the BK discharge papers to issue the approval letter, they & the escrow co. only need that in order to allow you to close. Getting these papers shouldn't be holding you up from getting an approval.

It's when you start going back & forth countering with the bank over $5k in price that short sale approval can take much much longer, maybe 3+months.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Thu Nov 3, 2011
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