Berkshire West Realty
1. How motivated is the seller? How quickly will they respond by getting the bank the documentation they require?
2. How well trained is the listing agent? Have they specialized in short sales? What is their closing ratio? Do they have a list of go-to escalators that they can call at the bank to move the file forward, people who know them by name and have a track record with them?
3. Who is actually handling the negotiations? The agent, or a third party negotiator? What is their closing ratio? What is their average timeline?
4. Has the appraisal or BPO been ordered? Is the short sale pre-approved?
5. How busy is the bank? Does the bank negotiator answer to a third party? Or can they make a direct decision?
6. One loan or two? Any other additional liens, such as HOA dues or tax liens?
As you can see, TOO MANY VARIABLES. Anecdotally, I had a Bank of America/ Bank of America short sale this year, submitted in February. The first TD approved on March 7. The second approved on August 15. Same bank, same transaction, different departments. The second lost the file 3 times and had to reassign and start over.
Hope this helps, and best of luck;
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
Ultimately, the selling agent has to be on top of the game, but the owner of the mortgage makes the final decision. If one has a realtor who is direct with the bank, and asks the right questions, short sales can be put together relatively quickly.
The Selling Agent could be on top of his/her game and push BOA to expedite (what we call "escalate") the file to get a faster response, but I have personally experienced situations where that was done 4+ times. Each response time given was as follows: 7-10 days to review the file, then 4-6 weeks for the approval. Sounds pretty cut and dry, but in the 5th week the file was once again moved to a "new negotiator" or they are "missing" a documents (listing agent must upload through Equator again) or the file was "lost" - each time that happens, the process starts over... and the wait is longer and longer!
Despite BOA's attempt to streamline the Short Sale process through the Equator System (unlike other banks), there is no telling how long they will actually take to give an approval. Several factors come into play: Has the property been issued a notice of default, has a trustee Sale been set within the next 45 days, is the offer submitted a reasonable offer or low ball, are the current owners in a BK situation - sometimes its just a matter of NO forward movement (such as ordering a BPO/ Appraisal) on BOA's part. On top of all that, I have been told that BOA is receiving a monthly allotment (a "payment") from the Fed Gov't for each file in the Equator System (not verified, but plausible) - I could see this happening, which would make sense why a file "gets lost" or is "re-assigned" to a new negotiator and the time frame rolls on month after month.
You have a greater success of getting your offer accepted quickly if the Listing Agent has the contacts and language skills to discuss directly with BOA, most Agents do not. Find out if the Listing Agent is using a skilled negotiator (sometimes a former bank negotiator that worked on the other side and knows the in's & out's) on their team, with a HIGH track record of successful short sale closings (negotiated vs closed ratio) - this is a key determination on how long you can expect to wait.
I have personal experience with BOA, in both situations (speedy approval/ 2 yr waiting). I personally use a skilled negotiator (one that actually worked for Chase Bank as a negotiator for 17 years) He is a Licensed Agent now and makes a killing with his Short Sale Negotiating Company. He knows the in's & out's and pierces through most of the BS quickly, but there are those "quirky" times even he is stumped why the Bank takes so long to give an approval or not one at all. His success rate is about 92%, the best I have seen!! (remember - the Listing Agent [or short sale negotiator they use] sales negotiated vs their closed ratio is very important to your success as a Short Sale Buyer!)
I also want to encourage you to be patient... remember - the Listing Agent & your Agent have NO control over the situation, HONESTLY!!! In the end, even with the best negotiators, it is all up to the Bank (or the financial entity/ person holding the "Note" which BOA is servicing) whether or not they will accept a short payoff and how quickly they want to get the "toxic asset" off their books. No one "really" knows what is going on internally; no one knows why BOA approves one quickly and others take so long.
I wish you the best of luck and encourage you to keep your eyes open and keep looking; something better may actually pop up while you are waiting and you don't want to miss it.
Were I you, I'd terminate your offer now and go out and find a motivated Seller or a foreclosure both of which are much easier, have significantly higher suceess outcomes and you could be in a home within 6 -8 weeks of making your offer.
Regardless of what you choose to do, I wish you the best of luck!
best of luck
Time frame for a short sale varies between 3-6 months.
Realtor, DRE# 01891274
Century 21 All Moves
I'll keep my fingers crossed for you! Stay in communication with your Realtor and the short sale rep. They'll keep you posted on the progress. I suspect the timescale is on average up to 3 months.
Have a wonderful day
No one really knows how long the process will take, since every lender is and processes short sales a litle different .A lot has to do with how experienced your agent is and how knowledgeable he is in dealing with short sales since they are very different than a regular sale. I've done short sales in as litle as three months and as long as six months.My advice is if you are getting a good deal, hang in there and you will have sunshine at the end of the tunnel.
Keler Williams Realty
Generally speaking 45-60 days.
FYI the listing agent usually deals with the lender on the short sale. Sometimes they farm that out to others.
Just because B of A is the Servicer does not make B of A the Investor or the true holder of the note.
Then there is mortgage insurance companies.
Then the bank wants to get into the property, there can be a delay there on the sellers part.
Then there is the info the bank requires of the seller to qualify for a short sale. Here again the sellers can delay this for awhile. Usually when you make an offer to purchase in California, most people allow for 45 days for the short sale portion to be resolved and then begin escrow.
Ask your agent to call their agent EVERY WEEK on Tuesday or Thursday and that keep you informed on the progress.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
For all you need to know about short sales, go to the web reference below. Feel free to contact me with any questions or comments.
Best of Luck
I'm representing a buyer on a short sale through BofA, 2 loans both with BofA, and it's been a slow process. That's very "normal" (if there is a such a thing) with respect to short sales. They key is to hang in there but to also continue to look at other property. I'm sure your agent has been guiding you through this and is setting your expectations accordingly. Best of luck.
Rich Bennett, Realtor
Zephyr Real Estate
This is a hard question to answer. It depends on how many loans their are. Short sales are anything but short when we are speaking of time. You will need to be very patient. Just be sure to have good communication with your agent. Hopefully the agent on the listing end has good communication with the bank. They are very time consuming. Good luck!
Do you know if there is also a 2nd loan... makes a huge difference, especially if there is a 2nd, who is it...
I have successfully completed hundreds of short sale transactions and not one has closed from start to finish in less than 3 months.
When you are a buyer on a short sale, just be patient. If it is a property you really want, it will be worth the wait.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
If the sale is a traditional short sale it will close much quicker. I have been able to close traditional short sales in 75 days or less.
Bottom line : inquire as to what type of short sale it is.