Question Details

Mary, Other/Just Looking in

Short sale offers - for what length of time are they accepted?

Asked by Mary, Tue May 6, 2008

A short sale home has been listed for about 3 weeks. They have 2 offers so far. How long will the seller continue to take offers and send them to the bank? Does it vary depending on certain things?

Help the community by answering this question:

Answers

5
Short sale offers have been all over the place as far as acceptance. Whether it is 4 weeks to six months. It is just kind of a waiting game, banks are flooded and ill-equipped to handle them on a timely basis right now. Good luck
2 votes Thank Flag Link Tue May 6, 2008
The amount of time spent on Short Sale negotiations depends upon the mortgage holder who is ultimately the decision maker on what value they will accept for the property. In my experience, it varies from lender to lender - some have been accepted in less than a week and others have taken months. When a homeowner contacts their mortgage company/bank about consideration of a Short Sale, the mortgage company/lender typically orders a Broker Price Opinion which is the target figure they are hoping to get.
1 vote Thank Flag Link Tue May 6, 2008
Mary,

I agree with Martin that patience and persistence is of upmost importance. My team had mutiple offers on one of our short sales. The bank rejected them all and asked all interested parties to resubmit their best and highest offers. Then the still waited a couple weeks to see if other offers would come in before finally accepting one. Now it's been two months since that time to even get the appraisal. Hopefully, we will close end of May. If one is renting, it's best to go to month-to-month as you wait for one of these short sales to close.
Web Reference: http://www.ConnieHerron.com
1 vote Thank Flag Link Tue May 6, 2008
Hi Mary,
Banks are a peculiar business. There is simply no time frame for them (or so it seems) when there's interest on a property. Even if your offer has a "time limit" for acceptance, they tend to overlook it and proceed at their own pace.
For example: recently I submitted an offer on a bank-owned home the day after it came on the market. I offered $215K for a home listed at $195K......yes, $20K more than list, because I knew they had multiple offers and it was still a great deal. They had 4 different offers and, this time, they acted pretty quickly - within 4 days accepting an offer for $200K. Why not mine? The other offer had more earnest money (I could have put more, but only put $2500 earnest money on the contract). Go figure, but the bank took $15,000 LESS than my offer......Lesson learned.
Best advice? Be persistent, dont be attached to the property, and keep going after it or others. There ARE deals to be had, but you have competition and each bank acts in their own time frame.
All the best!
Martin
1 vote Thank Flag Link Tue May 6, 2008
Is it safe to say that offers can still come in until the bank accepts an offer or rejects all offers?

In other words, if it takes 2 months for a bank to make a decision, offers can still come into the bank up to the last week or so before a decision is made? Or, at some point: (1 month? after 5 offers?, an offer over list price, etc.) does the seller decide he/she has enough offers to give to the bank and stops accepting more offers? I hope my question makes sense.
0 votes Thank Flag Link Tue May 6, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer