Home Buying in 32256>Question Details

Fye51, Home Buyer in Jacksonville, FL

What is the deal with the time frame on short sales? The buyer has to wait up to 6mo to possibly get a NO then have to start from scratch.

Asked by Fye51, Jacksonville, FL Mon Dec 20, 2010

We just placed a bid on a short sale last week and the seller accepted the offer in 24hour but our agent let us know we could be in for a long wait because the bank sits on paperwork for months. Is there anything the buyer can do to speed up this process? Possibly talk to someone within the bank that has the property.

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8
Fye,
Any agent that has ever worked on a short sale has asked the same thing. It's a painful process as the bank collects financials from the seller, price opinions from other agents and discusses the options with the investor. The usual wait is 3-6 months with some going even longer. You can't lock your interest rate because you don't know when it will close. Unless you found a "pre-approved" short sale and offered the suggested price, plan to wait.
One bit of advice while waiting, keep your eyes open. If you see another house you like in an acceptable price range talk to your agent about your options.
1 vote Thank Flag Link Mon Dec 20, 2010
Yup! This is a reality and despite the new laws, I remain skeptical. Things have gotten a little better...but the basic dynamics of a a short sale remain the same.

When I am working with buyers, I encourage them to write an offer on a short sale if they like the home, but don't rely on it. Keep looking. In this day and age, I will oftten write multiple offers for buyers and in the end we see what comes back.

It's complicated - but I just don't recommend putting all your eggs in one short sale basket!!

Good luck.
0 votes Thank Flag Link Fri Apr 27, 2012
Good news is there are new federal timelines that may speed up the short sale process. Check out this article that came out this week http://www.courant.com/business/real-estate/hc-harney-0429-2…
0 votes Thank Flag Link Fri Apr 27, 2012
Fye,

Yep...........

This is information you may have benefitted from having prior to going to contract. At this point it may be helpful to have the answers to these questions before commiting long term to this transaction:

1. Have the sellers provided the necessary "short sale" paperwork to their lender?

2. Have the sellers submitted a "letter of hardship" to their bank?

3. Has a "loss mitigator" been appointed. If so, request their name and contact information.

4. Does the lender appear willing to work with the owner on a "short sale?"

5. Are their liens on the property?

6. Are their multiple mortgages or loans attached to the property?

7. Has the bank ordered an appraisal of the property?

8. Has the bank agreed on an acceptable selling price?

Putting you agent to work obtaining this information may help you determine if the time invested is going to be work the wait.

Happy holidays,

Bill
0 votes Thank Flag Link Tue Dec 21, 2010
I think the key for a buyer who has offered on a short sale--is to keep looking. Your agent should understand that this is the only market where this makes any sense--however, in states like AZ, NV and FL--short sales are going to be around for the foreseeable future. The process is frustrating, but the market is likely to be sideways and therefore in the buyers favor for some time. Finally, the notion that a bank "sits on paperwork" is a complicated assertion. You need to understand mark to market accounting on some level, understand the volume of the bank's distressed loans etc. (be patient, see my advice above) Good Luck.
0 votes Thank Flag Link Mon Dec 20, 2010
Your agent is correct. There is no way to speed up the short sale nor is there any way to talk to the bank.
0 votes Thank Flag Link Mon Dec 20, 2010
This is a nature of short sales. The process can be very lengthy. The buyers can only contribute by submitting a paperwork, the lender will request from them, in timely manner. The lenders may request the most recent proof of funds statement from the buyer. Make sure that you deliver to the short sale negotiatior ASAP.
0 votes Thank Flag Link Mon Dec 20, 2010
Unfortunately, when it comes to short sales there are no set standard time frames as to how long it will take to close, therefore much patience is needed; some lenders are quicker than others, and there is really nothing a buyer can do to speed up the process, other than to make sure that the seller has submitted all required paperwork to the lender--your agent can best advise.
0 votes Thank Flag Link Mon Dec 20, 2010
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