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Dowtin, Other/Just Looking in silverspring

What is the avg. time should a person wait for a response to an offer on a short sale?

Asked by Dowtin, silverspring Sat Oct 20, 2007

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There is NO average time! Sometimes you NEVER get an answer but the run-around. I've had alleged "experts" jump into an escrow with a short-sale lender situation saying they can "get the job done" only to find they hit a brick wall like all the rest of us. Much of the response time is how well your initial package to the lender is presented. If you have all your documentation ready to go once you get an offer it can make a big difference. I just received the lenders response on an escrow opened on June 15th! They are going to take a $190,000 hit on the loans on the property!! You can see why they like to drag their feet! However, due to their reluctance and tardiness for a response, they property is NO LONGER WORTH the agreed upon contractual price between the buyer and seller of $519,000!! It's now worth $475,000!!
The process is frustrating for any homebuyer and Realtor/Agent unfamiliar with the process. I went through this back in the 1989-1991 market but never got Reponses!! But back then we were not as "side-ways" as the current crop of short-sales indicate. What makes this short-sale market so different is the rather breathtaking "loan compromises" we've been seeing! I mean $200,000!!! In loan forgiveness!! And the lenders are approving them!! BUT!! That doesn't mean it's a DEAL!!! You'd be surprised at how fast you can loose everything by buying properties for pennies on the dollar!
The big key is to understand the process going into the transaction. Yes, it is going to take forever to get a response! Just accept this. Make all your timelines begin at the time of acceptance of your offer by the lender when it comes to inspections, attorney review, etc. This can be very problematic as contracts have at their core "Time is of the essence". However, when you work a short-sale expect those with the most patience and understanding to get the deal done. Ranting and Raving ain't gonna cut it!
You need to ask yourself a fundamental question: Is this house really worth all this hassle? There are PLENTY of sellers out there who WANT your offer and will provide price concessions, interest rate buy-downs, and all sorts of fun things to get YOUR offer. Think about it and good luck!
2 votes Thank Flag Link Sat Oct 20, 2007
It depends on the bank you’re dealing with and how many additional liens are on the property. The offer may have to go through a committee at the bank, then they could send out an appraiser or Realtor or both do to a market analysis and then back for review at the bank. I've seen them take over a month. In the mean time a higher offer could come in or more liens could be placed on the property which can change everything. They don't make it easy on the buyer. Micheal
1 vote Thank Flag Link Sat Oct 20, 2007
If your waiting for a response from the bank on a short sale, expect a delay up to 2 weeks. But with all the homes being sold short, you should at least give it some time. In the meantime, continue to look for other homes incase the bank rejects you offer.
0 votes Thank Flag Link Sun Oct 21, 2007
Great question....I've had answers in two weeks....and I have a current one that is 75+ days. Short Sales require a lot of patience and can often be frustrating. Good luck!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Oct 20, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Dowlin...

There is not average time to wait. Here in Northern California we are experience months before a reponse. If you are a buyer I would consider looking for a property that is not a short sale.
0 votes Thank Flag Link Sat Oct 20, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Dowtin:

5 to 15 business days here in SCal.
0 votes Thank Flag Link Sat Oct 20, 2007
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