Snooki0922, Home Buyer in Randallstown, MD

when the bank has been been contacted and has already did the assessment of the property how long should it take to get he approval on a short sale?

Asked by Snooki0922, Randallstown, MD Sun Apr 8, 2012

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Ariana Loucas’ answer
Dear Snookie,
There is no true answer to your question. I have short sales on the market that have taken over a year at times, even after a BPO. I have some that were approved in 3 weeks. There is so much happening behind the scenes at the bank's level involving: investors, mortgage insurance companies, awaiting items from the sellers... that can add to the delays. You can visit my website for more answers that may help you as you endure the process.
Ariana Loucas, REALTOR, CDPE, SFR
0 votes Thank Flag Link Mon Apr 9, 2012
Annette in Florida,

I give "Snooki0922" a 70% probability she gets her short sale home. Maryland is not Florida, we are a small state with just 21 counties with only two of those counties having REO/ Short-sale problems.

Less than 1% of the states housing inventory are REO properties. Acitve short sale homes account for 10% or less of available inventory. We actually have a housing shortage for first time home buyers.
0 votes Thank Flag Link Sun Apr 8, 2012
Snook, if time has any bearing what-so-ever in purchasing a home, a short sale should not be one for you to consider. In Florida, short sale buyers, after waiting on average 271 days to find themselves on the losing team 70% of the time.

The Wild, Wild, West of real estate, known as short sales, presents an illusion of rules but the reality is, 'anything can and does happen.' You, the buyer, are the least influential in the process.

As others have suggested, what the home owner has completed is critical.
Now, the bank must be considered and determined if they are on the FDIC 'motivated' list.
If the mortgage has been sold, now the investors will be able to steer the outcome as they see fit.
Don't overlook the mortgage insurance company will play a role in the outcome.
Now, the mortgage servicing company is incentivized to encumber the process for their financial gain.
Should those treacherous water be successfully navigated, the homeowner get a last look at the deal offered by the bank/investor/insursnce company/servicer to determine if that deal (not necessarily your purchase offer) is of any benefit to them, They will have an exit strategy that 70% of the time proves to be more beneficial than agreeing to the short sale terms.

As you might be able to see, the initial assessment (we don't know what that really is) will prove quite irrelevant as the can is kicked from one quadrant to the next.

How long will it take? This situation must be evaluated in all its aspects by a real estate pro. Then the reality is your question becomes 'how long will it take to know if I'm on the losing team?"

In my area of FLorida that averages 271 Days. A child can be created in less time. A home can be built in less time. Eight traditional sales could be completed in that time. Nine bank owned sales can be completed in that time. Many, many other homes will have been bought and sold during this time. Yet, short sales continue to siphon effort, time, money and resources in the illusion this buyer will be on the winning team.

Wishing you the very best in success in buying your new home.
0 votes Thank Flag Link Sun Apr 8, 2012
Hi, It depends on if the seller has completed their package properly and if there is also a second lien holder. The banks are moving quicker then previous years, just depends on who it's with.

0 votes Thank Flag Link Sun Apr 8, 2012
Not sure if as you call an "Assessment" was a BPO ( brokers price opinion) or an appraisal of the property was completed for the bank. It can take up to 10 days for the value opinion (BPO or Appraisal) to be sent to the banks negotiator. Baring no other complications such as a counter to the contract price and other banks involved on other loans on the home. You could expect an approval letter or counter to the sales contract with-in 30 to 45 days. Sixty days or longer is possible and sometimes probable.

If the bank moves forward with the seller and your sales contract you should be sending updated bank statements, pay stubs "ETC" to your lender. Most approval letters on short sales demand settlement with-in 30 days so be sure your lender has a completed document loan file from YOU to start the loan process.

Greg Myers
RE/MAX Realty Group
0 votes Thank Flag Link Sun Apr 8, 2012
The variable is if the seller has been approved toeven complete a short sale and if the offer is at or just under market value. The offer should be clos eto that appraised value becuase if it is too low, it may get rejected. The things that affect time is if their are 1 mortgage or 2. Then if there is PMI (private mortgage insurance) involved which can hold up decisions. In the best world you would hear in 30 days or less, on average 60 days and as many as 90 if the package is not complete.
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0 votes Thank Flag Link Sun Apr 8, 2012
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