What's the typical period (time frame) that the owner/seller has opportunity for Short Sale before it becomes?

Asked by D, Florida Fri Jan 25, 2008

Short Sale

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Michael Cepa…, Agent, Tampa, FL
Thu Oct 30, 2008
D, Toms answer is point on. If you would like more info or any questions, feel free to contact me. One other thing, DO NOT sign a quick claim deed or power of attorney to any "investor" as I have never seen that work, ever, and it has always turned out bad for the person with the mortgage in their name(notice I didn't say homeowner, because you won't be if you quick claim it to somebody. You will just be the person responsible to pay for it) . That is not the way to do a short sale. Good Luck.

Heather, feel free to send me any short sale on the west coast.
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Shannon Moore…, Agent, Port Charlotte, FL
Thu Mar 20, 2008
Jackie is correct, it really depends on the bank. I've seen from four months to over a year. Typically it takes quite a long time to move it through the court system and right now they seemed to be very backed up.
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Heather Seitz, , West Palm Beach, FL
Tue Feb 12, 2008
I can give you the "Florida" answer to this question! The banks are SO OVERWHELMED right now and some counties are weeks behind on the paperwork. We have one of our sellers who was served her papers in January of 2007. The bank has no sale date set as of yet.

I know the lenders are nationwide, but the people handling Florida are really overwhelmed and there is high turnover. On one property, we had a different loss mitigation specialist every time we called. They had either left the company or transferred to another department.

We've also had cases where the lender knew we had the listing and were aggressively trying to sell and they didn't even start the formal foreclosure process because they realized they were going to take a loss and didn't want to incur the additional expenses.

The key is to have a Realtor that knows and understands the process and how to get through to the decision makers. You'd be surprised at how many don't have a clue! (We tried to send dozens of referrals to agents on the West Coast of Florida that were short sale candidates and couldn't get one taker!). They're definitely not preferred, but they're a necessary skill in today's market. If you're working with an agent, I would ask how many short sales they have/have closed and what experiences they've had with particular lenders.
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thinz, Agent, Allenhurst, NJ
Tue Feb 5, 2008
Be careful when you talk with your lender or realtor...they sometimes muck up the process of making the best decision for the seller. The bottom line is you can begin a short sale WITHOUT having late or missing payments, and in many cases, that is the BEST scenario for the seller when talking with the lender. It all comes down to how formidable a case you present on the seller's circumstances, and also how confidently and objectively the case is made to the lender. Lender's can read between the lines pretty well (when you're talking with the real decision maker) - they would much rather negotiate a short sale while still receiving payments if they know the outcome of the short sale will save them money in the long run. But, you have to make the case properly and prove it
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Keith Sorem, Agent, Glendale, CA
Mon Feb 4, 2008
Please read my blog in this.
Note that a short sale is usually not going to be considered until you are at least one month late.
Talk with your lender and a Realtor. Average length of foredosure process is 6 -9 months in most situations..
Web Reference:  http://www.Glencrestteam.com
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Lynn Pineda, Agent, Coral Springs, FL
Mon Feb 4, 2008
As so many have already indicated, this time frame will vary depending upon where you are in the foreclosure process and which lender that you are dealing with. On average it's around 6-9 months. Please keep in mind, that the foreclosure can be delayed right up to a day before the home is ready to be sold at auction. The key is in getting a buyer to make an offer on the distressed property. What so many sellers do however, is to ignore their situation and give up valuable time. It's extremely important to be advised on your situation to determine which way you should turn in remedying your situation. Please if you need more assistance visit my short sale web site at http://www.MyShortSaleHome.com
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thinz, Agent, Allenhurst, NJ
Sat Jan 26, 2008
Unlike what you may be reading, you can begin the short sale process anytime. While the rule of thumb we all hear is the bank won't discuss a short sale until you are 60-90 days late, that is not accurate.
You can begin the process with the bank before you are late with your first payment. When payments are continuing and a short sale IS being pursued, I've been able to bypass the lender's collection department and get into the Loss Mitigation Department faster. Once the process begins with the loss mitigation department, I am seeing it take up to 90 days to schedule the BPO with certain lenders.

After the BPO gets to the lender, the process can take anywhere from 1 week to 30 days to get averbal approval. Foreclosure can take anywhere from 4 to 10 months (depending on your location and lender...)

Be careful though if preserving credit is your concern...people get approached to do a short sale as a way to mitigate the damage to their credit by avoiding foreclosure, bankruptcy, etc. If you don't make payments during the short sale process, your credit will likely have enough late or non payments that will drop your score significantly - thus impacting your ability to qualify for leasing a vehicle, getting a mortgage, or renting.

The particular steps you should take will depend a lot on who your lender is, whether your house has been listed, your objectives and plans depending on the worst case scenario of the short sale taking too long, or not getting approved, and your particular hardship. Depending on your hardship, you may qualify for other options with the lender that have an advantage over a short sale.

Feel free to contact me direct if you have specific questions at: thinz@apexgroupus.com
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Jacqueline F…, , Kissimmee, FL
Fri Jan 25, 2008
I believe it realy depends on the bank.
There are many variables to this.
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D, Home Buyer, Florida
Fri Jan 25, 2008
... before it becomes "Foreclosure"
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