Oh and don't forget you must be very, very patient and must understand the process before entering in a short sale contract. Of course there are no guarantees you never know if you will close a short sale. There are so many things that can happen. Seller changes his mind and wants to try loan modification again. Bank wont give full release and seller wont except partial release. There are not too many agents that know the process and it is very refreshing dealing with agents that are certified in short sales.
1) Seller accepts and signs offer from Buyer( Seller is still rightful owner of property)
2) Listing agent and/or attorney submit short sale package to primary lien-holder. This package includes several Seller financial documents, hardship letter, contract, listing history from listing agent.
3) Lien-holder orders BPO (Broker Price Opinion), which is an independent real estate agent to provide value analysis
4) Based on the BPO, the lien-holder will respond to offer price. They will likely either accept or counteroffer with terms.
5) Once terms are agreed upon, the lien-holder will officially accept the terms including an approval deadline date, which tends to be 30-45 Days from lien-holder acceptance.
There are several steps that the Seller an their representatives tackle along the way between steps 2-5. Also, there are differnet ways to approach earnest monies, inspections, appraisals, etc... from a Buyers perspective in order to limit exposure to out of pocket expenses.
Hope this helps!
More then ever, we, at least in America, live in a culture where answers are a click away. Guidelines dictate how an event will run. People coordinate. Others follow. Organization is the mantra of our society.
Short Sales violate all of that. They are as confounding as the question of our existence is to atheists, and the question of Coca-cola's recipe is to theists.
Imagine never knowing. Never. Where are we in the process?
Agent doesn't know.
Three months later. Can you call the bank?
Agent says attorney says that Bank doesn't respond.
My friend's short sale was done in 3 months. It's been five months. What's happening.
Agent has no answers.
They did an appraisal two months ago, how come we haven't heard anything?
Agent unable to give answers.
But, but, the owner hasn't paid the mortgage in almost two years, and we are offering almost market value, why won't they approve our short sale?
Your agent should be able to help you with this information.
If the price is pre-approved - then the process will go much more quickly. I find the process is not nearly as lengthy as it used to be.
Another area to inquire about is - more than one lein - second and third lenders to be satisfied will definately make the process more lengthy -
Don't be discouraged......................you will get a great deal!