Home Buying in 92126>Question Details

Raina, Home Buyer in USA, Mobile, AL

How long does it take for the bank to apporove a short sale offer that's been accepted by the seller?

Asked by Raina, USA, Mobile, AL Mon Mar 23, 2009

We made an offer on a short sale and it has been accepted by the seller. There's only one lender involved-Deutsche bank and the listing agent claims that the short sale package has been submitted to the lender a month before we made the offer. The BPO has been performed on 3/6/09. We are already in escrow. Can I assume we are close to receiving a response from the bank?

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It depends. Sometimes it only takes a few weeks for the bank to respond. Sometimes, it takes months. The seller's acceptance means nothing. If the BPO has been done, that is a good thing. Did you find out if the home appraised-out? (Meaning, it appraised for more or equal to the agreed-upon sales price.)

Keep your fingers crossed, and just stay on top of your buyer's agent or the listing agent!

Christine Van Tuyl
Prudential California Realty
Leading Edge Award Winner, 2007, 2008
Blog: http://realestatesd.blogspot.com
Website: http://www.sandiegosurfandsand.com
3 votes Thank Flag Link Mon Mar 23, 2009
just want to chime in that indeed, short-sale takes about 60 days to close. Be patient and hope you enjoy your new home!
0 votes Thank Flag Link Tue Mar 31, 2009

Yes, that is the $64,000 question.................

The length of time required for the bank to respond depends upon a number of factors, The bank will need to determine the extent of debt associated with the owners of the property: 1st mortgage, 2nd mortgage, line of credit, liens, marital issues, back taxes, etc will influence the banks position.

For complex situations it can require 4-6 months of review to provide the clarity the bank is seeking. There are many horror stories associated with short sales, enough to cause both agents and buyers to be a little "gun shy" about these transactions. A high degree of patience will definitely benefit your cause.

Good luck
0 votes Thank Flag Link Thu Mar 26, 2009
Hi Raina,

The answers that have been posted earlier are accurate. Patience is the key. Many buyers give up on a short sale purchase because it takes so long. You have no way of knowing how many hundreds of files these folks are working on at any given time. Most people who put an offer in on a short sale property are looking for a DEAL. Unfortunately, the way they have to pay for that deal is in time and frustration. Hang in there.

Mike West
Web Reference: http://www.BuyYourVilla.com
0 votes Thank Flag Link Thu Mar 26, 2009
Thank you all for your input.
Christine, there's no way to find out the results from the BPO. At this point all we can do is just be patient and hope.
0 votes Thank Flag Link Thu Mar 26, 2009

I would definitely not assume that. Short sales are very unpredictable and I would not lead your client to believe its closing until it's actually closing. Unfortunately being patient, very patient is part of the short sale process.

Dawn Lewis

0 votes Thank Flag Link Wed Mar 25, 2009
Based on your description - it seems like things are moving along pretty well. My understanding is that it usually takes about 30 days after the BPO for the bank to assign a negotiator. Once the negotiator is assigned, since there's only one bank, the final decision should be quick - within a week.

If there was more than one bank or more than one lien, the part after the negotiator is assigned can drag on for months.

And others are right - seller's acceptance means nothing as far as the timeframe for moving things along.

Some banks are quicker than others - the listing agent should be able to answer these types of questions better than any of us can based on his/her experience as a short sale listing agent in your area.
0 votes Thank Flag Link Tue Mar 24, 2009
Hi Raina,

Christine is spot-on correct. It depends. It also doesn't matter all that much that the seller has signed. It's really the bank's decision. You are lucky that there is only one lender involved.

Your agent (who may also be the listing agent - we can't know this from your question) should be touching base with them daily. The squeaky wheel gets the oil. Any news on the appraisal?

Make sure your agent stays on top of them all the time (but nicely). Otherwise, this will slide for weeks/months.
0 votes Thank Flag Link Mon Mar 23, 2009
Dear Raina,

There is not average time for response from Lender's. From my personal experience it is taking quite a while to get responses from most banks. Best to speak with your agent and the listing agent to determine where they are in the process and when an approval would be expected.
0 votes Thank Flag Link Mon Mar 23, 2009
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