Home Buying in 30281>Question Details

Pbess, Home Buyer in 30281

When purchasing a short sale what time frame am I looking at? The owners lender is House Hold Bank, are they known to usually approve or deny? The

Asked by Pbess, 30281 Wed Jul 28, 2010

house was built in 1966 and we offered $21,500

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Time frames depond on a multitude of factors - seller situation, seller providing everything the lender wants, seller putting up with the lender telling them they need to resend said info 35 times, amount the lender stands to loose, condition of the property, appeal and value of the property, market conditions of the area, the lender actually wanting to go through the process, people working at the bank that know or care to learn about the process, you being consider a viable buyer........in short, each shorty is it's own island and there is no answer to how long.

If the seller's not provided everything and the lender isn't certain they'll do it - a looooooong time is likely. If they have everything and are motivated to move the home, it's faster. I've had them range from a month to ten months and counting. You better make sure this is a deal worth the wait.

Hank
1 vote Thank Flag Link Wed Jul 28, 2010
The only correct answer is the first one. The process is in flux, as what happended before is no template for another. Banks install routines, change them, and each deal is individual with unique factors. A lotof "usuallys" and I notice you have put a deadline on yours. Your privilege but one reason deals fail. You should clear your contingencies such as inspections when you know you are the first offer and seller appproves. All other offers are secondary until the lender deals with yours. If the BPO covers your offer, you will be given only a few days, hopefully enough, to inspect. With no loan contingency you are able to close if title is clear. Your attorney should order title insurance so ask now what that time frame will be. Attorneys consider it malpractice to not recommend title insurance. You want clear title. Same with a survey. You want to know where the property lines are. These items can take a few days and the bank often gives a short time to close once approved. Lots of things to consider. Be careful.
0 votes Thank Flag Link Thu Jul 29, 2010
Pbess as for a timeline on my last short that had an accepted offer it went quick. Offer made June 20, Approval July 17, close sceduled for August 25. They don't all have to be bad!
0 votes Thank Flag Link Thu Jul 29, 2010
The answers you've already received are solid; it generally takes 90-120 days for bank approval depending on loan servicer and dynamics of owed principal vs. home value. The best advice I can give is to be ready. Once you have bank approval things can move fairly quickly which is preferred by all parties involved in the transaction. If you're willing to pay cash you shouldn't have any difficulty and the wait may be worth it - good luck!
0 votes Thank Flag Link Wed Jul 28, 2010
3 months sounds ideal. My record is a 58 day sale with Trulia Voice Julie Brittain last year - Suntrust was the seller's lender.

I always suggest 5 to 6 months of cycle time.
0 votes Thank Flag Link Wed Jul 28, 2010
Thank you all for your answers...I bidded on the house on July 20th so it is kind of early...I just turned in my earnest money yesterday after finding out I was the highest bidder...the home was listed for $20,000 and I offered $21,500...this would be a cash offer...I was told that the listing agent is very good with short sales...also she told my agent that she should here something in about 3wks or so for the BPO (?I believe that is the abbreviation for it??)...In my contract I stated that I would wait for about 3mths and hopefully it is not that long...if it is then at that time I will decide if the house is worth hanging on to.
0 votes Thank Flag Link Wed Jul 28, 2010
Pbess,
Welcome to the time void of short sales. All banks have their own program. There is no standard program or plan to work short sales. The smaller the bank, the faster the approval process because they have fewer files. Just be prepared to wait...and wait a little longer. Who is involved with the bank negotiation? Wether a realtor, lawyer or title company, make sure you are on their update list. The selling agent will be in touch with them on a weekly basis. Make sure that you are on the update list to get information. and wait a little longer. Patience is not only a vertue...it is a necessary ingrediant to a successful short sale!

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Wed Jul 28, 2010
Pbess,

The length of time for a short sale is any ones guess but there are a few questions that can help yo determine if the effort is going to be worth your time.

1. Has all short sale paperwork been submitted?

2. Has the owner presented their letter of hardship?

3. Does the bank appear willing to work with the seller?

4. Are there multiple loans on the property?

5. Are there any liens on the property?

6. Has the bank appointed a loss mitigator to the property?

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

8. Has the bank assigned an acceptable price for the property?

9. Is the seller being supported by an attorney?

The listing agent should be able to provide you with the answers to these questions and these answers may help you to see your way! In any event, the process is normally difficult, frustrating and very tme consuming....

Good luck,

Bill
0 votes Thank Flag Link Wed Jul 28, 2010
Hank is correct there are Lots of variables, just because one Short Sale deal came together in 45 days doesn't mean another will do the same. My last Short Sale took 5 Months due to a past tax lean.
0 votes Thank Flag Link Wed Jul 28, 2010
The best of short sales take 2-3 months to get approval. The average time is 3-6 months though. You need to ask specific questions of how far along they are in there short sale. Has the bank assigned a negotiator? has teh bank completed their bpo or appraisal? they alone take up 6 weeks of teh process, and if completed can move things along.

As far as your offer price, the bank will not take much lower than what the house is worth in todays market. Make sure your offer is within the range of whast the value is. the bank will not give the farm away, if your offer is too low, it will get rejected.

please see my blog with tips and suggestions how to get a short sale approved.

http://www.trulia.com/blog/scott_godzyk/2010/06/how_to_get_a…

Tips and secrets of the short sale revealed
0 votes Thank Flag Link Wed Jul 28, 2010
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