Who is the lender? Also, is your agent following up with the selling agent and keeping you informed?

How long does a short sale approval take after the BPO. Let me site some specific examples Wachovia is normally 2-3 weeks after the BPO. Citimortgage 6 weeks after the BPO. Aurora was 8-10 weeks after BPO. WA MU was 8 weeks after the BPO. My favorite Bank of America I have one that was approved 3 months after the BPO and another Bank of America that is running 6 months from the first BPO and still not approved.
Also to note ask the listing agent if the loan is Fannie Mae loan or not because ultimately its the investor that gives the approval not the bank. Fannie Mae loans take 6-8 weeks normally to approve unless the bank does not move it along for some reason. Remember that some of these banks have as many as 1000 short sales in their offices at any given time. All of these time frames are approximations from my past clients, mostly sellers.

Kateashly~

Great question! First depending upon the bank it can take up to two weeks after the BPO to two months or longer. It will also depend upon if there is a second bank involved. Once the bank that is in first poition accepts a price that meets what they are hoping to net from the sale. Then you will get an accepted offer from them . If there is a second on the home your realtor will have to know, up front, what they expect to net from the sale. Most of the time the first will offer them 3K. Most banks that are in second position will take that but some will not. So you might have to come up with additional money to close the deal, if you cannot work out a compromise with the seller or the bank. But once you get an accepted offer from the bank it works like a regular escrow. You can expect to close around 30-45 days. I am sure that you have a wonderful agent that will guide you through this unknown journey. Good Luck!

Kelle Adair
Senior Real Estate Consultant
916-257-5108

Hmm.. A short sale on a lease-option. That's a mouthful. Unless it's not a true option but instead a first right of refusal. Did you set the sale price at your lease signing?

I suppose the bank doesn't have to accept your offer for purchase and could even take it to market without you. That's of course after you've submitted your offer for purchase based on having a first right of refusal. At least there are some plus signs that there is activity on the sale (i.e. getting a BPO). That usually means that there is a negotiator involved, but it also means that they haven't evaluated a sale price of the home yet. Depending on the lien holders (and number of lien holders), the process may take as little as two weeks or could take as long as 8 months. I'm just finishing a short sale right now that I started with my clients in November of 2008. My advice, get everyone ready to take action to remove your contigencies but don't get too anxious about sending them into battle.

Hi Kateashly,
That is a good question... I have seen banks counter within 2 weeks of a BPO or up to 2 months afterward. I think that banks are performing faster than even 3-4 months ago. It all depends on the # of banks involved. If 2 banks are involved it can take longer and both have to agree to the short sale and all the terms.
Usually short sale banks will shorten the escrow terms so get your lender to have all their ducks in a row and expect to do your inspections faster as well. Usually the buyer has up to 17days to do their home - but the bank may counter back with only 10days which is common. Usually it takes some banks 30-45 days to close a loan- again it depends on the type of loan you have. Hopefully you are using a Realtor to purchase your home- these are things your Realtor can negotiate for you.

Hope that helps,
Kathy Dyer
Home Team Girls Real Esate http://www.HomeTeamGirls.com
Kathy@HomeTeamGirls.com