Home Selling in Rotonda West>Question Details

Crashdavis8, Home Buyer in Charlotte, NC

How much longer should I expect to wait to hear back on my short sale offer?

Asked by Crashdavis8, Charlotte, NC Fri Apr 27, 2012

I am a potential buyer with an offer in on a short sale. Suntrust has the property and they have already approved the seller for a short sale. There have not been any snags or setbacks so far and I am a month in since making my offer. How much longer should I expect to have to wait to hear something from Suntrust? They also have requested a HUD statement and had me fill out an Arms Length Transaction affidavit.

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8
We had an offer in on a short sale & 4 mos. later were told the bank had negotiated with the seller to refi the mortgage, so we were out of luck. And we had done TONS of paperwork.
1 vote Thank Flag Link Mon Jul 2, 2012
6 to 18 months - maybe you get lucky and it happens in 4 months
1 vote Thank Flag Link Fri Apr 27, 2012
Just keep looking in case something better comes along while you're waiting. Even if the price was previously approved it's possible the actual lender (Suntrust probably is a mere middleman "servicer" and doesn't own the mortgage) may require another appraisal or BPO.

Also some servicers are offering Deed in Lieu of foreclosure to Sellers in the middle of a Short Sale so there is a possibility the seller will just deed it back to the actual lender. Additionally there are Deed for leases being offered to owners so they can stay in the house and become a tenant and rent at below market rates.

The HUD statement should have been provided to the lender within days of your contract acceptance. All Short Sales have to submit a HUD upfront with any offer so that's no indication of progress. The Arms Length letter also is a standard form that most lenders require but doesn't show it is progressing.

Hopefully your Realtor will get the approval letter soon but expect to close in 4 months or possibly longer and while you're waiting, continue to look at "genuine" bargains, bank owned fixer uppers.

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Fri Apr 27, 2012
Every short sale is different. On April 17th, there was a report that loans backed by Freddie and Fannie would be required to make a decision on an offer within 30 to 60 days. You can read the article in the link here.

Your agent should be keeping in contact with you and giving you any updates they get. Hopefully you will be moving forward soon. Good luck!
0 votes Thank Flag Link Fri Apr 27, 2012
My best guess would be another 30 days plus. Every short sale is different!! Your agent should be able to give you a reasonable update.
0 votes Thank Flag Link Fri Apr 27, 2012
Is the listing agency working with a short sale company or handling it themselves? It goes through a short sale processor first and then to a short sale negotiator. The time frame depends on how backlogged Suntrust is. Also it depends on if there is more than one lender. If the loan was backed by Fannie Mae or Freddie Mac then it also has to go through them. Short sales are always a wait and see. Do you know if they have ordered the BPO (broker price opinion) yet? Hang it there, it sounds like things are moving along.

Tammy Hayes, Realtor
Green Lion Realty, Port Charlotte, FL
tammyhayesre@gmail.com
0 votes Thank Flag Link Fri Apr 27, 2012
It sounds like you have the lenders attention. I was expecting you to say you had not heard anything from the lender, but you have and that means you won't be months and months waiting. At this stage in the game the lender is looking to get a BPO to establish the current value of the house. I am guessing you will be hearing something in the next couple weeks. Hang in there.
0 votes Thank Flag Link Fri Apr 27, 2012
These types of transactions can take three to six months. There are efforts by Freddie Mac and Fannie Mae to get the processes streamlined to make it faster but as os now it is a very long process. Hang in there!
0 votes Thank Flag Link Fri Apr 27, 2012
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