Question Details

jobber104, Both Buyer and Seller in Minnesota

What are the stages of and timing for Short Sale offer approval?

Asked by jobber104, Minnesota Thu Jan 29, 2009

We recently made an offer on a short sale house. The seller had it listed through a flat-fee MLS service for the last 6 months. By chance we looked at it with our agent the day after the MLS listing expired. We made our offer within a couple days and the owner agreed not to relist it but, instead, to use our agent as a listing agent (?) for this transaction with us. To sweeten the deal further, our agent agreed to a 3.5% commission. That was 2wks ago.

Within 2 days the lender ordered the title search, then HUD, and finally appraisal/BPO received yesterday. It seems things are moving along well - even though our agent is not in contact with the seller's lender so all information we're receiving is second hand from the seller.

Does this seem like a good pace and what might we expect given what's already occurred in 2wks? Also, any other obstacles or pitfalls we should be watching for? It's an anxious time, but we're optimistic and want to close in late March.

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Another status update with a follow-up question.... We've been told by the seller that the file has been sent to the investor. Is this usually the step that can be most time consuming? Is it possible to get any updates from the lender/investor during this period of review/approval? -jobber
0 votes Thank Flag Link Fri Jan 30, 2009
Hi Jobber,

From your posting i can easily tell that your short sale offer is going very fast....i have been on both sides of short sale and the fastest i was able to do was about 2 months. The slowest one is still going on after 8 months!
Good luck.
Leonardo
Web Reference: http://www.leonardoteam.com
0 votes Thank Flag Link Thu Jan 29, 2009
Additional information:

We believe the offer is very reasonable, not a super low-ball offer.

There doesn't appear to be an competing buyers right now, and with the MLS expired hopefully there aren't any new shoppers stopping by.

The owner accepted our offer, signed (we have copy) and sent to the lender immediately.

Although we don't have direct contact with the lender, the owner is in the mortgage business and claims that he deals with this lender frequently. Therefore, we suspect he has some internal contacts that are helping him grease the wheels to keep things moving. This also helps because he's familiar with the short sale process and isn't learning as he goes.

From sample "approval letters" I've found online, it looks like most of them stipulate closing within 30 days of the date on the letter. Is there any room to negotiate on that date? If an approval comes shortly, we'd still (ideally) like to target the end of March for a close due to relocation, etc.

Thanks again for any insights that can be provided here. What a great collection of expertise!
0 votes Thank Flag Link Thu Jan 29, 2009
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