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Deborah J. L…, Home Buyer in Phoenix, AZ

How long does a short sale take?

Asked by Deborah J. Liggins, Phoenix, AZ Fri Jun 22, 2012

will I be able to purchase anothe home?

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Jennie Miller PLLC’s answer
The short sale approval letter from the sellers' bank can take anywhere from one week to 3 months to issue. Worst case scenario, short sale approval letters can take 120 days to be issued.
0 votes Thank Flag Link Sun Jun 24, 2012
Too long and stay away from them. Find foreclosed properties instead. http://www.naplesrealestateguys.com/blog/foreclosure-scams-a…
0 votes Thank Flag Link Thu Nov 22, 2012
By asking will you be able to purchase another home, tells me that you are wanting to know how long it will take to sell your home by short selling it.

First you will need to gather information. We give you the list of items that your bank will require. Part of that packet is an authorization for us to speak to your lender. We represent you to your bank throughout the entire process.

Recent requirements have been made to speed up the short sale process. The bank is to respond to us once we give them the paperwork within 3 days to acknowledge that they received our packet and they are to assign a negotiator within 30 days. Once the negotiator has the file they are to give us an answer within 30 days. This is an improvement as you have probably heard that many short sales were taking from 3 months to a year, and sometimes longer.

The short sale packet I sent in this week had a response from the lender the next day and the following day a BPO (broker price opinion) was being done. This is ordered by the bank and this shows that they are definitely stepping up the process.

As far as qualifying, this will depend upon your circumstances. If the short sale is the only negative on your credit then there are lenders that can do a loan right away. If you are facing many credit issues right now then you will have to work on your credit. But, please feel free to contact us and we can assist you on the best way to proceed in your circumstances.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133

** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" **

Search the Official FlexMLS like a Realtor through our website for FREE:
http://www.CunninghamHomesAZ.com
0 votes Thank Flag Link Sat Jun 23, 2012
Hi Deborah,

I am not sure if you are asking how long will it take to short sale your current home or how long will it take to purchase another property. I will answer both questions.

First of all, we work with a lender that can give you a new loan immediately after a short sale. Yes, immediately!! The program is designed to allow borrowers to take advantage of today's low real estate price and start earning equity now as opposed to 2 to 3 years from now. You will be required to refinance the loan in 2 to 3 years once your credit is reestablished.

Second, the time frame to short sale your home could be one month to three months at the most. When short selling your home you will want to make sure the approval letter provided by the bank will release all your debts so that you will not be liable after the short sale. The worst thing would be to owe a debt with no home / collateral. My team of short sale experts and attorneys will make sure you are 100% released from all your debt obligations associated with your home.

Give me a call to get stared on the short sale process so that you can go out and purchase another home immediately after the sale.

Sean Heideman, Broker
Position Realty
Office: 480-213-5251
0 votes Thank Flag Link Sat Jun 23, 2012
I would be very interested in getting specific written details about a loan program for sellers who just completed a short sale. What interest rate is charged? What are the closing costs? Is there a prepayment penalty for early payoff? I know nothing about the program but would urge prudence, caution, and a careful reading of all documents.
Flag Sat Jun 23, 2012
Our team has done 100's.of short sales. The big consideration is the lender or lenders involved. Some have their act together and respond in as little as a month while others take months. Our negotiator can give you a good idea after getting the details of your situation.

Without more info it is impossible to say when you'll be able to qualify for a new loan. We'd be happy to do an evaluation and let you know though. No charge, just quality information.
0 votes Thank Flag Link Fri Jun 22, 2012
Hi Deborah,

As the other responses have indicated, there is no set time for a short sale and they can vary greatly, although most will fall in the 90-120 day range. There are many factors that affect the timeline including how many liens, which lender(s), paperwork submission and more.

If you hope to purchase another home right after a short sale, chances are that you won't be able to. Depending on the type of loan you seek you may be able to purchase in as little as 2 years if you keep your credit straight . If you were relocated and that was the reason for the short sale, you may be able to purchase right away, but again there are other factors, such as a necessary large down payment to get that to happen.

Regardless of the answers in this forum, you should sit down with an agent to thoroughly discuss your specific situation to determine the best path for you to take. Please feel free to contact me if you would like to do so.
Adam Tarr PC
Citywide Real Estate
480-236-7374
0 votes Thank Flag Link Fri Jun 22, 2012
It looks like you are asking how long after a short sale that you are able to purchase another home. If this is what you are asking then it will depend on what happened with the short sale that you went through. If you stayed up to date on your payments throughout the process then there is a slim chance that you might be able to purchase right after the process is complete. However, it is generally at least 2 to 3 years depending on your circumstances. If you want to forward me your email address then I have a sheet that I can send you directly from my lender with the types of loans and what the wait period is.
0 votes Thank Flag Link Fri Jun 22, 2012
Deborah, is the question that you had a short sale and want to know how long you must wait before purchasing another home using FHA financing?

If this is the question you must wait at least 2 years. It is important that you pay all of your bills on time to ensure you meet the minimum credit score required.
0 votes Thank Flag Link Fri Jun 22, 2012
Deborah,
Sometimes the short sale approval from the Seller's lender comes very fast - within 3 weeks, especially if everything from the Seller's package has been submitted and is in the format the Lender requires it. The approval notice for the short sale can take longer if there are more than one liens. In addition, if the Buyer is financing the whole transaction time will be increased...
Web Reference: http://www.talktosteffy.com
0 votes Thank Flag Link Fri Jun 22, 2012
Each short sale is unique as to the the loan type ( FHA, VA, Conventional) and the number of loans on the property, and the seller's specific hardship.

I have closed short sales in as little as 20 days and have others where the loan in the property is a FHA or VA taking considerably longer.

I trust I have answered your questions. If you have any additional questions please free to contact me at 480-466-0264 or via e-mail at milly@millycasas.com
0 votes Thank Flag Link Fri Jun 22, 2012
Hi Deborah, It really depends on the lender that holds the loan. A good average is 90-120 days, but it could be more or less then that.
0 votes Thank Flag Link Fri Jun 22, 2012
In general, figure about 2-6 months on average.
0 votes Thank Flag Link Fri Jun 22, 2012
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