Our experience is that "short sales" that are not bank pre-approved take considerably longer than "foreclosures."
There are a number of obsticles that need to be overcome that go beyond the initial mortgage. ie. second mortgages, taxes, liens, divorce etc. By the time a property reaches a foreclosure status, these issues have all ready been resolved.
When the wave of delinquencies started, first the loss mitigation department became overloaded, because they were charged with attempting to contact the borrower and see if something could be worked out. Eventually they staffed up or outsourced those contacts, but the volume in backlog is still rather high.
Loss mitigation also had to handle all the workouts, reviewing financials, getting BPOs and approving whatever disposition made sense. Short sales may mitigate losses or the proposed sale price may be larger than just foreclosing and selling the REO. This judgment call is important and takes time. Nobody wants a file audited to find that the BPO was significantly higher than the approved sale price.
Listing agents should be contacting the seller's lender for a bottom line, but the lenders are not forthcoming about that , because disclosing to the agent would create a conflict of interest. So, the agent guesses, submits whatever low-ball he gets in (some are ridiculous), and finds the bank dragging their feet. The bank sends out a contract agent to do the BPO and eventually processes the file. The answer is painfully slow, and usually not good when the price is low ball or commissions are over 5%.
At this point the file is in a similar state to a REO, a few weeks after the offer was submitted. They know roughly what the property is worth and what their approvable bottom line is.
This is why Short Sales are very much slower than REO sales.
They specalize in working directly with the Bank employee that controls the property and speeding up the whole process.
They close 40+ a month this way.
If you want more info e-mail me at Jerry@teamcendera.com or call 972-827-7890
30-45 day offer to close on foreclosures is what I find.
60-90 day on short sales.
Obviously there are many exceptions and not all work out.
Unless the Short Sale has a set price that the lender has pre approved it will take longer and it will usually can still take longer. Foreclosures can take a long time.
Your homes are usually in better condition the Short Sale.
A foreclosure cuts out one of the parties. The owner is the bank. The timing of a foreclosure totally depends on the bank carrying the house and the title company if they force you to use one you don't normally work with. Some are slower than molasses.
In either case, just don't consider your closing date as set in stone, and have a backup plan for what to do if it shifts out because things can move at a snail's pace.
Hope that helps!!