Home Buying in Las Vegas>Question Details

jdenny20, Home Buyer in Las Vegas, NV

how long can a short sale last? i heard that there are laws out there protecting the buyer to make the banks go a little faster?

Asked by jdenny20, Las Vegas, NV Mon Jun 25, 2012

i signed paper work for my short sale in may.they have already taken my earnest money and they are in now phase 2.i have no clue what that means but i hope it means im close.

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Answers

5
There is not much protecting the buyer when the short sale addendum to purchase agreement is signed.

The approval may come down (within any time frame) but the seller may not agree to the terms and then you have a deal that is over.
0 votes Thank Flag Link Thu Jun 28, 2012
The average short sale today will take four to five months. It's a lot better than before. But understand that the negotiator/asset manager can have as many as 100 or more files to work on. So your transaction is only a part of huge undertaking. There lots of things that have to be worked out and values are part of it, but only part of it. Home owner associations, taxes, utility services, second liens and mechanic and tax liens will further slow the process. The banks are more motivated than ever before to close each deal as the expenses pile up on them. May was last month. My short sales from March are first being approved now and, frankly, I'm thrilled. Earlier, it took six or mote months!
0 votes Thank Flag Link Tue Jun 26, 2012
thank you for your answer.i actually got a call saying i will be closing at the end of august at the latest :)
Flag Tue Jun 26, 2012
Good morning,

There is no specific time line for short sales. The lenders are under no obligation to approve a short sale. There was a law that was passed requiring a short sale decision within a mandated time period, if I remember correctly the new mandate takes effect in July. However, this law as with most of the madates that have been passed will only delay a market recovery and tighten lending restrictions. It will do little if anything to help buyers, sellers, or a market recovery. If lenders have not had substantial time to determine if the short sale is in their best interest when the deadline hits they will simply turn down the short sale and the sellers' would have to start the process all over again from the begining. Just my opinion. Short sales by their nature are time consuming. The sellers' are asking the lender to concede large sums of money. The lenders' loss mitigation departments are usually overwhelmed and understaffed. Decisions often require several reviews before and if a final approval is given. Hopefully, you will be kept informed and updated and everything works out for you. Good luck.
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0 votes Thank Flag Link Tue Jun 26, 2012
You should ask if the short sale request, or seller's financial documents have been submitted to the mortgage holder. Some listings are already pre-qualified. It does not mean it is guaranteed, but, usually means a faster sale.

You and your agent should be aware of how many liens are on the property. They will be listed on the preliminary report. One lien is not too hard. Many liens, such as a second mortgage, HOA liens, judgements, etc. can mean long delays. Also, large liens also could be a red flag of a long wait, or the sale not being completed, at all.

I do not know of any laws that force the banks to be faster. Only, that your deposit would be returned, if the sale is not completed, within the contract specifications.

Don't shy away from short sales. But, do be informed. And, ask questions.
0 votes Thank Flag Link Mon Jun 25, 2012
Short sales can take a few months. Most about 4 to 6 months. In rare instances longer. Are you working with a realtor? They should be advising you of this.

Thanks,

Nakia Woodson
702-318-1244
NakiaWoodson@yahoo.com
Wardley Real Estate
0 votes Thank Flag Link Mon Jun 25, 2012
i am,but the other side is not giving any info.its frustrating because i want my home already!! she copies and sends me the emails she writes them but there answers are so short its becoming annoying.thank you for answering.
Flag Mon Jun 25, 2012
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