From the time you get approval of the seller's lender, they will generally condition their approval with you closing in 30-45 days from that point.
The two big issues that a buyer must accept when dealing with a short sale property is 1) the chance that the seller's lender might not approve the deal at all, and in fact end up foreclosing on the property (which means you waited usually 3-6 months to find out that you wasted your time) and 2) the chance that the seller's lender will come back with a number significantly higher than your offer amount (and sometimes significantly higher even than the list price for the property!
As an example of #2 - I had a short sale listing that was approved by Bank of America at $64,000. I had a cash buyer willing to pay the $64,000 that Bank of America required. Before Bank of America got around to approving the deal, they transferred the loan to NationStar Mortgage... not necessarily a HUGE deal in itself... except that NationStar wanted to start over from scratch (adding an additional 3-4 months to the process) and ended up telling my buyer that they wouldn't consider anything under $110,000... ouch.
Hope this was helpful for you, and if you have any other questions, please don't hesitate to get in touch!
La Rosa Realty
1. how far along in the process the seller is in the short sale process
2. whether or not the lender is willing/able to work with the owner
3. if the seller is working with an attorney to assist in the process
4. whether or not paperwork is done in a timely manner
5. if their are multiple loans and/or liens on the property
With all of this said, one of the best short sales to attempt is one in which the asking price has been approved by the lender. This simply means that the seller and their lender are far enough along in the process that the hurdles associated with the transaction have been crossed....this should streamline the process greatly and save loads of time.
Hope this information is helpful to you.
Every short sale transaction is different. If the bank has approved the short sale price, than the time period to close is shortened considerably. On average, you can expect to wait a minimum of 120 days to close. If you do purchase a short sale home, you have to be very patient and understand that many weeks can go by without a single word from the short sale lender. The processors/negotiators are buried in short sale transactions.
I would be happy to answer any other questions you have about short sales or any homes that you find an interest in that are located in the Tampa Bay Region of Florida in Hernando, Hillsborough, Pasco and Pinellas counties. Just contact me through my Trulia PRO profile.
FL Lic. Real Estate Broker