The short sale process is never sped up because of any one thing. It depends on the banks policies - good or bad - and their procedures - usally pretty bad. Also in play is the mood of the bank's negotiators, plus the diligence, quality, patience, stamina and incredible good work, of the listing Realtor - and a buyer's sheer good LUCK.
The long answer: I have had successes and also bitter disappointments working with banks on short sales. I've had them close in 6-8 weeks. But more commonly is this experience: on one home, I submitted three different contracts and the bank took months to work each one. Each time the buyers waited patiently and each time either the bank turned the offer down or the buyer simply got tired of waiting. Guess what? After one and 1/2 years of trying to short sell the home...that home is now 2 years empty. The seller and I just gave up trying to work with the bank (Countrywide, btw). Now it is going into foreclosure, and overgrown by weeds and bushes, i.e. a once great house is now an eyesore in the neighborhood and will probably be empty another year or two...given how slow the banks are doing anything now. It will probably sell for so much less than any of the offers I brought the bank, that you have to wonder what the banks' real agenda is when it comes to short sales.
The short answer: I have had "bank approval" and still the banks turned down the offers AND took months to do so.
If you have patience, and a gambler's constitution, you may well end up with a great deal. There is NO telling.
If you have any kind of time frame to work with, then a short sale is not for you.
The good news is that in this market, most sellers are having to compete with short sale and foreclosure prices. Honestly I think you are better off having your Realtor find you either a seller owned home for sale, or a foreclosure. Short Sales are just a mess with no sure conclusion at the end of the deal.
Clearly I am one Realtor that is OVER short sales until the banks start treating buyers with care and respect. The National Association of Realtors is working to get the Banks to stop being huge impediments to our coming out of the housing crisis.
BTW, the banks treat Realtors who are trying to do these transactions extremely BAD for the most part. They don't respond, they don't seem to care that we are working for families and they certainly don't want to pay us for our work.
But other than that, I don't really have an opinion ;-)
Some lenders are approving quickly when the seller has had a failed modification. I had one that Bank of America approved and I got closed in 3 months from the contract because the sellers had been working with their lender for a long time trting to modify and were denied. Bank of America is trpically taking many months to even review files.
If you work with a Realtor to make your purchase, make sure that your agent asks the Listing agent for as much information possible. There are no gurantees with short sales. If you have a timeframe, you should look at Bank Owned or Traditional Resales. An educated motivated seller will price closely to short sales and you can get a great deal without the wait. Best of luck to you.
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Typically what a bank approved short sale means is that the seller has gone through part of the short sale process already with another buyer, but the buyer failed to purchase the property for some reason. Usually in these situations the bank has completed their analysis and has established a sales price that is acceptable. It may have already obtained approval from internal departments and/or outside investors involved in the short sale. As long as the approval wasn't too long ago it probably means you can make an offer at the approved price and move through the balance of the bank's short sale process quicker than if you were starting from scratch.
Prudential Network Realty
3535 Highway 17, Suite 10
Fleming Island, FL 32003
Wachovia: A second buyer stepped in, wrote offer. Wachovia approved, and buyer closed in 21 days.
Wells Fargo. An all cash buyer stepped in just 3 days after the first buyer backed out. One would think this is a cinch to close. Not so. Wells Fargo closed the first file, and wanted to start all over again with the second --- all cash,with proof of funds!
Bank of America. Same situation. File closed. We began the process again, and several months later, the sale closed.
With short sales, the only things that are short are TEMPERS!
of the comparative homes sales in the area & value. There is no quick process!