1) Who the bank is
2) If the loan is investor owned or not
3) If the agent who took the listing knows how to complete a short sale package (A CDPE designated agent is recommended)
I work mainly with short sale listings and have had listings take 10-360 days to get approval. Now, the 360 day number was at the beginning of this short sale crisis when BofA took over all the files from countrywide and they didn't have equator set up.
Now I am looking at 30-120 days for short sale approval depending on the bank.
Hope this helps!
Patrick A. Hale, CDPE, RSD
Real Estate Broker & Investor
"The Best Way To Predict Your Future Is To Create It"
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Office: 4370 La Jolla Village Drive, Suite 400
San Diego, CA 92122
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REO & SHORT SALE EXPERTS WITH A MISSION TO:
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The time for a short sale is usually long and many times the buyer making an offer backs out because of the long wait. The time period for a notice of default in California is 3 months plus another 20 days after the notice of trustee sale until the property can be sold at auction/taken back by the bank. Many times there is more than one lender involved and that makes the whole process longer and less likely to become a successful sale. In the classes I teach, I show buyers the many benefits of buying a home/property from the bank (after the trustee sale). The banks seem to be more motivated after the property has reverted back to them, because the property is classified as a non performing asset. Finding the properties that the bank has had on the market the longest and making an offer on them, I find, to be even more beneficial to the buyer. The link I am including shows the foreclosure timeline. This article may help..The Art of Contrarian Investing - Why it Makes Sense to Buy Real Estate Now!
By Fred Eckert â€“ Chicago Title Many real estate pundits and investors say that they are waiting for prices to come down, before they purchase an investment property. That may make sense for investors, because they want the property to have a positive cash flow right away (be profitable as a rental). If, however, you are a buyer wishing to own a home to live in, it makes tremendous sense to buy now, when others arenâ€™t buying. This technique is called contrarian investing, in other words, buying when others are selling instead of buying when everyone is trying to buy. Here are the major benefits to buying nowâ€¦Lots of Sellers (including Banks and owners who are upside down), are highly motivated to sell.
Sellers are offering incentives, like paying for closing costs, interest rate buy downs (to help the buyers get better financing), seller financing, price reductions, paying for HOA dues or club memberships, parking fees, etc., in order to get buyers to bite. Lenders now have to operate in this more restrictive and competitive market and are offering incentives to get buyers to use their services. Some lenders are offering to pay for appraisals, waive fees, waive prepayment penalties and give other cost saving considerations. Little competition from other buyers means less chance of paying too much. Historically low interest rates are here-now, but they may be higher in the future. Buyers will be living in their own home, benefiting from pride of ownership, future appreciation, and will probably experience a better quality of life. They will not be paying rent (for something that will not appreciate for them, as renters). Buyers may receive mortgage interest write offsâ€¦ for income tax savings. Market downturns affecting value, would be on paper only. The lower value of property, in a flat market, has minimal or no adverse impact, unless the buyer decides to sell during that time. You will get the inviting prospect of significant gains when a rising real estate market returns (as it has done multiple times in the past). Buyers should plan on holding property bought now, for at least five to ten years to further ensure profitability (the more time the home is held, usually means more equity and profit when selling).
Additional considerations for buyers are: Use a licensed Realtor, to help protect you and find listings suitable for your needs. Get pre-approved(not just pre-qualified), by a couple of professional and experienced lenders. Review the statistics from the San Diego Multiple Listing Service (MLS), to help you determine market time and average/median list and sold prices.
Visit http://www.sandicor.com/statistics ...Ask your Realtor to find the homes that have been listed the longest (these sellers are most likely very motivated). Try to buy without emotional attachment to a particular homeâ€¦you can always turn one that isnâ€™t your first choice, into your dream home. Get a home inspection done, to see needed work. If repairs are needed, get a licensed contractor to give you an estimate, in writing, to submit with your offer. Get your own buyer appraisalâ€¦ - It makes sense then, to have an appraiser working for you, not the seller, before you buy.
- Use a cover letter, summarizing your market trend statistics, appraisal information, loan approval, home inspection results, contractors estimate etc., with your offer, to show the seller that your offer is sound. Ask your Realtor to deliver your offer, in person, to the listing agent, to improve your chance of getting it accepted. Remember to compare lender financing options and pricing, on an â€œapples to apples basisâ€, not just on the rate quoted. Remember this quoteâ€¦â€Be willing to do today what others wonâ€™t do, so youâ€™ll have what others wonâ€™t have tomorrowâ€.
It seems to depend on how far into deliquency the seller is and where on the stack of 'short sales' does this hardship fall on the loss mitigators desk.
As a buyer or seller I definitely would never pin all my hopes on a short sale because there are a lot of variables that have to take place to make one successful.
A good agent will know approximately how long one will take and each deal is different.
If the house is 30 days from foreclosure then it'll probably move more quickly (ie: 45-60 days) than if it hasn't even made it to public notice to foreclose.
Short sales can result is stellar deals. Although the owner typically can't make repairs, it isn't a true AS-IS in theory, because you have someone who has lived in the home to tell you about the home's history.
Make sure to find an agent experienced in short sales and have the patience of Job. They don't move fast and can result in nothing for buyer or seller. But, when a deal is struck with the bank sometimes the wait is worth it. For first time home buyers or people ready to move the short sale experience can be nausiating.
I wouldn't miss out on a deal now in hopes of a short sale 'maybe' going through later. If your gut tells you this is the HOUSE, then go with your gut. Keep your hopes high and your expectations low on short sales.