The other agents have all touched upon the meat of what causes the wait on short sales and they are right, all depends on which bank, if more than one lien on the property, etc.
I advise all my clients that if they are going to get involved with a short sale that to expect a wait as the agents seem to lose all control on these types of transactions. As another agent mentioned, lots of nudges are a good avenue but don't always do a trick. I also ask the listing agents if there's going to be a 3rd party negotiator involved..sometimes this speeds the process along as most are skilled in moving along short sales.
I'm not sure how your contract was written but I now am writing any offers on short sales with the right to withdrawl prior to bank approval and me and clients continue to look at other properties just in case the bank doesn't get back to us timely. With rates bouncing the way they were over the summer/fall, I chose to use this tactic now to protect my clients in the event the rates changed during the transaction and an increase would cause them to no longer qualify. This is generallly main problem/concern I run into on these types of transactions because the lenders won't lock in for an extended period of time like that or will charge you to do such. So the timething doesn't just affect you having to wait, but can also affect your payment or qualifcations for that home if the rates go up substantially.
I'd check with agent you are working with to have them follow up. If you love the property, might be worth the wait. If you're over the wait and need to find something, then I'd see if contract was written with the above notation of right to withdrawl prior to bank approval.
I have printed your question out to show my buyers during buyers presentations why short sales aren't always the best choice for those that would like to move soonest.
Hope things work out to your advantage.
Accredited Buyers Representative
Virginia Beach, VA 23452
Best of Luck!
Nelene Gibs, e-Pro, Realtor
Having said that, that is not the case with all lenders. But it does take a ridiculous amount of time to get anything done. Do you know if the current owner has more then one mortgage? If there is a first and a second mortgage, those two lenders have to agree on the sales price and work it out between them. Even though the first mortgage is in the primary position, the second mortgage must be satisfied in order to convey title to the new owner. This will make the process take longer. Getting one bank to respond is a challenge. Now multiply that by two.
If you are buying the short sale property for an extreme value, it is worth the wait. If the value of the property has changed (depreciated) while you are waiting out this process, then it's not such a good deal.
Ocean City, Maryland
My fastest short sale was 22 days from package sent, to accepted. But you have to take into account that I submitted the package as the buyer and also put in the offer. So there was no waiting for an offer, or making sure the right paper work was filled out. We did it all immediately and stayed in touch to make sure things went perfect. There was a lot of other things I did that most people won't be willing to do, but when a homeowner is in need, I gotta pull out all the stops and make it happen.
It's possible, but usually not likely...
If your house needs work and is a short sale, I'm much more likely to get my offer accepted in a more timely fashion than any agent could, unless of course they are buying it themselves and have done the number of short sales I've done to know the ins and outs.
Hang in there, and stay in touch with the agent.