It also depends on the banks and how they are processing properties in foreclosure. Certain banks are taking longer than others.
First Weber Group
Certified Distressed Property Expert
If you are shopping for a home the best advise I can give you is to keep up with the active market and when you find a house put an offer on it and continue looking. Shorts sales can take over 6+ months to get lender approval but you have nothing to lose. Talk to your realtor, she/he knows what is out there and can direct you to the cream of the crop. Keep in mind that new short sale listings will take a loong time. My short sale advise is look at the homes taht have beeen on the market for a long time...200+ days. these homes probably have offers on them but after 200 days there is a good chance the buyers have walked and you can move into the deal with less down time.
So, the real answer regarding time is very difficult to answer because all short sales are unique and so are the agents who list them.
If you are interested in short sale properties, you should look at properties that already have the short sale approved, otherwise, you would wait for the bank to foreclose (3-9 months, sometimes longer) and it becomes REO (another 3-9 months, sometimes longer) and then it gets listed by a broker and available to the open market unless it is sold off as part of a bundle.
You added a picture, I see. You always ask very good questions. Weren't you looking in Del Mar previously? I am seeing more and more short sales that actually are closing escrow, so if it's a house you really like, jump in there and make an offer. Banks are trying to move inventory off their books faster and have been staffing up over the last couple of months. Last summer, one took 5 months to get an approval to me and of course the buyer walked. They just filed an NOD after 6 months of no payments but I have a new replacement offer in too so they'll frequently postpone the trustee sale to let the short sale close. My new short sale with another lender just got approval in 45 days, so the timeframes are getting better. But, I've seen other houses that became bank owned that didn't even come on the market for many months. Some banks have so much inventory they can't get a handle on it and even get them listed for sale in a timely manner. Others assign them to a Realtor the minute the trustee sale is finalized. So, sorry we can't be more direct but there's not a definitive answer. Have you made offers in the last few months you've been on trulia? How can we help you find the home that's just right for you?
Diane Conaway, RE/MAX United, (760) 749-2888
Birgit has laid it out well. There really is no rhyme or reason. The big banks just promised to hold off on foreclosing on homes until the next financial bailout is announced. Fannie Mae and Freddie Mac had already promised that. So, you may see short sales on the market a bit longer. It also depends upon how early in the process someone does a short sale. For example, we've had clients who weren't behind on their payments, did a short sell, and closed escrow, so it wasn't even close to becoming an REO. So, long story short, it all depends upon the property. You can visit our website to see all available foreclosures in San Diego County, and we can also search the tax rolls for Notices of Default so we know how soon they might be coming to foreclosure. Hope that helps! Bryan Devore, 760-908-3838