Have short sale approvals improved? I put in an offer 20 days ago, the house has one loan with Wells Fargo.

Asked by l8more, Chatsworth, CA Mon Sep 10, 2012

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Ken Dorfman, Agent, Los Angeles, CA
Tue Sep 11, 2012
Not much. My firm does about 75% if its business in short sales. Despite all the promises from the banks, the noise from the Treasury and HUD, we haven't seen much in the way of improvment in the last year or two. It is better than it was 5 years ago, but still slow, overly complicated, frustrating, but, from a value stand point, well worth the hassle.

Ken Dorfman, Broker
Kenneth B Dorfman Real Estate
DRE# 675912
Phone 888 846 0688
E-Mail Ken@TheRealEstateOffice.Biz
0 votes
Emily Knell, Agent, Huntington Beach, CA
Mon Sep 10, 2012
Every listing agent's timeline is going to be different & it's a matter of their level of success & experience.

If you're getting antsy after only 20 days, you may not last through the whole process which is probably going to take a min of 65-70 days.

If you would like I can do my "pre-qualification" on the listing agent for you to see what their success ratio has been over the last 5yrs in Closing the short sales they've listed. Hopefully my results will reassure you. Maybe they're like me, with a 100% success ratio.

I hope that Your & ONLY Your is the offer that has been sent on to the bank & that the MLS is at the very least showing as "B" or Back up Offer Status. Make sure that the listing agent is HOLDING any back up offers that come in & does not forward them Over yours to Wells Fargo.

I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.

562-430-3053 c
Realtor Since 1996
Realty One Group
100% short sale success ratio
& I can Prove it.
0 votes
Walter 'Skip'…, Agent, Brea, CA
Mon Sep 10, 2012
The short sales process has improved over the last few years. Wells Fargo like other large banks use the Equator system to process their short sales. That said, a lot depends on rather the seller can document financial hardship. If the seller has been working with their lender and has been denied a loan modification, the short sale timeline will be shorter.
Good luck,
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Steven Ornel…, Agent, Fremont, CA
Mon Sep 10, 2012

The Listing Agent's level of preparation is key to shortening any Short Sale timeline. For example, before even listing my current Short Sale (both loans are Wells) we had all property inspections done upfront (to remove some level of the Buyer's risk), all Seller disclosures were completed, and 95% of the documentation paperwork required by the lender(s) was done.

Within "Day 1" of entering into contract our Short Sale package was submitted. Day 38 we had our 1st Appoval in hand and Day 51 the 2nd approval arrived (a total of 37 working days).

Good luck with your purchase!

0 votes
Cindy Davis, Agent, San Diego, CA
Mon Sep 10, 2012
I agree with the below comment. They ARE better but certainly not fast. 3-4 months is still the average time frame.
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Jane Kennedy, Agent, Chatsworth, CA
Mon Sep 10, 2012
If the short sale is being processed under HAFA guidelines (government regulated with incentives to some parties) the processing of the short sale will be much faster than a conventional short sale. I have found Wells Fargo to be easy to work with in the past.
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Terri Vellios, Agent, Campbell, CA
Mon Sep 10, 2012
Some are getting better. One loan with Wells sounds like you should get something pretty soon. Provided that the listing agent and seller have provided all the documents request at the time of offer submission. I tell my buyers that they may not hear anything for 3 or 4 months. If something comes in sooner, great!

Just have your agent keep communicating with the listing agent. Find out if a negotiator has been assigned, is the BPO done and back, has all documentation been provided? Etc.

Have an amazing day!
Web Reference:  http://www.terrivellios.com
0 votes
BPO done and appraised at 15K under our offer. could this be a problem for our lender? Would they lower the price or have us renegotiate?
Flag Sun Sep 16, 2012
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