Home Buying in Fayetteville>Question Details

Connie Johns…, Other/Just Looking in Fayetteville, AR

When an offer is made on a short sale property, and there are two lenders involved, how long does it NORMALLY take for the lenders to make a decision?

Asked by Connie Johnson, Fayetteville, AR Mon Sep 10, 2012

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Thank you Allison, and Chris, in the Fayetteville area. Your answers seem to be the general consensus... I'll keep looking, and keep waiting....

Thanks again!
0 votes Thank Flag Link Mon Sep 10, 2012
We plan on a minimum of three months and they can go much much longer! Unfortunately there is nothing normal about short sales and all of the power is in the hands of the lender.

If you are in any type of a hurry I would stay away from short sales.

Good luck!
0 votes Thank Flag Link Mon Sep 10, 2012
It will always depend on many many factors (see other answers....I don't need to repeat), BUT....it really depends on who the 2 lenders are. I have had short sales take a week (local lender, quick turn around), and I had another one that took 9 months (and the seller wasn't eligible for the short sale) so it was denied. Usually, 2-3 months, but nothing is "normal" in a short sale. My suggestion is to keep looking for a home, but leave your offer in place. If you find another house you can cancel your short sale contract, but if you don't, there's still a chance you'll get the short sale. Hopefully, the listing agent will know that updated documents have to be sent in for the seller every month (bank statements, pay stubs, etc.) until a decision is made.
0 votes Thank Flag Link Mon Sep 10, 2012
Simple question, but not a simple answer.

There are many factors in a short sale which determine how quickly the lenders make a decision.
*Has the seller provided all the requested documents to the Lender
*Does the seller have a legitimate hardship
*Is the property vacant
*Is the property owner occupied or an an investment home
* Who are the lenders
*What is the market value of the home
*Does the offer reflect market value
*How much is owned on each loan
*Who are the lenders
* Has the loan been sold
*Is the listing agent experienced
*Is it qualified for HAFA

So you see each house and each short sale will have a different combination of answers to the above and that will determine the response. With two loans if they are different lenders then expect 4 or more months.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Mon Sep 10, 2012
There is no way to answer that. Each case is different and it all depends how much they will lose in the deal and what the property is worth and how much the primary will pay the 2nd lien holder. One lien is bad and can take months, 2 can take longer if they allow the short sale at all. Remember, they don't have to allow it at all and it can take you months to find that out. If you are in a hurry, forget short sales !!!!!!!!!!
0 votes Thank Flag Link Mon Sep 10, 2012
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