Home Selling in Woodbury>Question Details

thecomputerd…, Home Buyer in 54639

What is the ave time a short sale is on the market before selling?

Asked by thecomputerdesk, 54639 Thu Jan 23, 2014

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Tread lightly, so many factors to consider... Does Seller have a hardship? Does Seller have more than 1 mortgage and/or lines of credit? Does the listing agent know how to communicate with the bank(s)? Is Buyer in it for the long haul (if you are considering ss and you accept an offer, get the buyer to agree to giving your broker earnest $ before bank approval, buyer is more "in the game" and less likely to get shifty every time the wind blows)
I don't list shorts, but refer them to a fellow rockstar agent. Let me know if you want more info.
John Pecchia
651-338-1933
Welcomehomeproductions.com
0 votes Thank Flag Link Thu Jan 23, 2014
Desk in Woodbury,
Here's where the problem exists.
As real estate professionals we know there is a number that exits for the amount of time a home is marketed before a purchase offer is accepted. At the time of offer acceptance, the home is typically off the market. (is this the number you want?)
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A different number exists for the time between offer acceptance until all contingencies are removed and the buyer is truly committed. (Is this the number you want?)
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Another number exists for the time the contingency are removed and when everyone meets at the closing table. (Is this the number you want?)
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Then, there is the great distortion created by short sales and the convoluted and illogical process the banks, service companies, insurance companies, investors and the seller impose. I've had a short sale sabotaged by the court appointed trustee whose end game was to make the house a part of her real estate companies holdings. That took 2 and 1/2 years.
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Is the number you are looking for the time that may be required from making a purchase offer to being handed the keys? 3 months to 18 months...depending on things known and things unknown.
Not every buyer has what it takes to do a short sale.
0 votes Thank Flag Link Thu Jan 23, 2014
Before selling? If its in good condition and fairly priced its no different than a traditional sale. As far as actually closing, thats a different story 4-6 months in a perfect world but my record is 30 days and 18 months to cover each end of the spectrum.
0 votes Thank Flag Link Thu Jan 23, 2014
thecomputerdesk, the property in Woodbury that you mention in your link has been on the market for 125 days which is below the 2013 DOM average for Woodbury of 180 Days. These numbers continue to drop for a variety of factors but are down significantly even from 2011 where the DOM was 229 (Woodbury). If you need some additional information just ask.
0 votes Thank Flag Link Thu Jan 23, 2014
Oh Boy that is the question everyone wants the answer to. The answer is not so cut a dry. It depends on a lot of factors. What bank or banks, the number of liens, condition of the property and most important who is handling the short sale. Are they competent and on top of it!! Last but not least is the seller cooperating with providing documents in a timely manner. I have had them last as little as 3 months and have had some take over a year!!! that's right you heard me over a year! Not the ones I have handled myself personally. Ones that I have been on the other end of and at the mercy of the sellers attorney and or agent handling it. Short Sales are anything but Short in time frame and they are big on frustration. But good if you need to learn patience .The long and short of it is you have to really LOVE and be SURE you want the property and be willing to wait as long as it takes to get it! Remember you can wait all that time and the bank can counter your offer and ask you to pay more! A short sale takes time, patience & commitment!
0 votes Thank Flag Link Thu Jan 23, 2014
There are so many factors to consider in each individual sale that dictate how long the process lasts. I have heard 4-6 months from a number of sources, but as Agent Block indicates below, one was fast and the other is taking longer.

Ultimately, the the amount owed to the lending institution compared to the selling value of the home is what will get the deal closed. Depending on the mood of the bank officer that day/week/month.

If there is a particular situation that you would like to discuss with me, I'd be happy to help.

Gary Kelemen Homes
651-207-8985
http://www.MNHomesGK.com
gary@MNHomesgk.com
0 votes Thank Flag Link Thu Jan 23, 2014
I answered this on your other post as well but just in case you are not monitoring that one I repeat it here as well.

The question is too general to have a specific answer for. Properties that require a short sale arrangement are subject to market dynamics as any other property hat goes on the market for sale. How long they stay on market before they have an accepted contract (time on market) depends on their location, condition, amenities, price and acceptable terms as well as their specific market trends, again like other non-short sale properties for sale. Your question may be answered better if you provide some of those information for the property that you are considering or the type of properties that you are interested in.
0 votes Thank Flag Link Thu Jan 23, 2014
Most properties marketed as a short sale never close as a short sale. The last stats I read from Uncle indicated only about 3% of at risk loans were ultimately sold as a short sale. It has been a long time since I researched the subject but I would guess as values increase the number of short sale decrease. At some point, where the value of the home exceeds the loan by some percentage, there is little reason for the lender to accept less than the balance due. But that isn’t the only obstacle, many sellers attempting to go this route are doing so strategically, lenders are absolutely supposed to squash those deals.

Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Jan 23, 2014
That is false Jim and also misleading. It comes across as you saying only 3% of all short sales close.
Flag Thu Jan 23, 2014
redundant question but 3-6 months is still the number. I listed 2 in the past year and one took 4 months, and the other one I listed in July 2013 and it is still going.

Christopher Block
651-307-7663
chris.block@imetroproperty.com
0 votes Thank Flag Link Thu Jan 23, 2014
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