Home Buying in 40337>Question Details

Connie, Home Buyer in 40353

how long to hear back from bank after bid on a short-sale?

Asked by Connie, 40353 Thu May 13, 2010

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Best answer is "Who Knows?" lol. Not trying to make light of your situation, but that sad truth is you never know. As mentioned by some of the other posters, a short sale is anything but a short process. The ones I've been involved with have generally taken about 3 months, but I've heard of them taking much longer. Have faith, give the system time, and remember that you are likely getting a pretty good deal in return.
1 vote Thank Flag Link Thu May 13, 2010
Keep looking until you get the written short sale approval with the Seller's signature on it and an addendum signed by the seller that says he agrees to all of the terms of the short sale demand letter(s). A lot can go wrong and if you think you will eventually buy this property at the "ficticious" prices (unless it has been previously approved) you may miss other "genuine" opportunities.

To get a better "guess" on how long it may take just for the underlying lender(s) (a Home Equity Line 2nd mortgage adds further complications) to do their independent appraisal of value to determine if your offer is an acceptable price, you will need more information from the listing agent. Also there are some "scams" where the short sale is intentionally delayed so the homeowner can live rent free longer or can collect rents from a tenant longer.

You need a well qualified Realtor to continue to show you properties until you get the approval letter in your hand.
0 votes Thank Flag Link Thu May 13, 2010
Connie,
There is no right answer to your question, but typically, you should have an answer within 30-60 days. It is a very frustrating experience for a buyer and the seller who want s to sell their home. Short sales should not be so complicated, but most of the time, they are. I hope you have time to hang in there and wait.
Good luck,
John
0 votes Thank Flag Link Thu May 13, 2010
Short Sales are never Short. Be Patient and make sure you check in with your Realtor once a week or so to let them know your still hanging in there. Often times it takes so long that buyers just go away. If they are further along with the bank meaning that they've made it to the Negoiator then it may only take a week or two. However if they haven't gotten that far with the bank, then like Scott said below it can take months.
All the Best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Thu May 13, 2010
On average it is 3 to 6 months. Now some banks have switched to a new system which has sped things up considerally. The basic steps of a short sale are the seller needs to be quailified to even do a short sale, the listing agent gets a short sale package from teh bank and a negotiator for teh seller should be found. The oprice should be set at market value and hopfully not more than 80% of what the home owner owes, banks doont usually discount the price more than 20%. Once an offer is received from a buyer, the seller signs contingent upon teh banks approval, multiple offers can be signed and submitted. The listing agent or negotiator fills out the short sale package along with requested paperwork from teh seller. The negotiator for the seller needs to get proposed huds for each offer showing what teh bank will get at closing. Now when teh bank received within 3 weeks teh offer needs to be revieews, if it is deemed complete a negotiator for teh bank is named, they will order an appraisal or bpo, sometimes 2. This will come back within 14-21 days. once it is back the negotiator for the bank will assess if the offer meets the banks criteria and the offer is within teh value of teh appraiser and within their accepte dloss ratios. They can then accept yor offer or tell you what they will accept. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu May 13, 2010
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