So I would say no, you are not at all close.
Getting the owners Financial Statement now....is not a good sign. In order to do a short sale that is the first thing that they have to show the Bank along with the hardship letters. It seems that this is just in the beggining stages.
Takes a lot of patience to go thorugh a Short Sale. Not an easy way to buy a house.
What concerns me here is why are the sellers only now, after they have an offer, completing their financial statement? A listing agent experienced with short sales would have had all seller financial information completed at the time of listing the home, as it all should have been submitted with your offer. Submitting paperwork later only results in additional delays.
Should the sellers not provide this information to their lender, the sale will be denied. This happened to one of my buyers, and we were not amused that the listing agent never completed the full short sale package, including the seller's financial paperwork.
I would recommend that your mother's agent should be requesting information on what paperwork is needed from the seller, and should be following up with the listing agent to make sure this is done in a timely manner.
As for the BPO, the information below is correct - the seller's lender will hire a third party to perform the BPO, and that third party will hire an appraiser or a real estate agent to complete the BPO. Several days, or a week or two, can easily transpire from the time the lender orders it until the order is assigned to an agent. The agent then typically has 2-3 days to perform the BPO, but this can vary based on when they are able to gain access to the home. Then the completed BPO is returned to the third party, who runs quality control checks, and they then return it to the seller's lender. Once the lender receives it back, it can take days or weeks for them to update their short sale file with the BPO, then to re-check the file to make sure they have all the paperwork they need. Once the file is complete - and only when the file is complete - will the lender submit it to their investors for a decision.
Also consider that they may be ordering more than one BPO, as well as possibly a full appraisal.
You mother will need to be very, very patient. I've seen the process take anywhere from two weeks to over six months.
Hope this helps. I do this on a daily basis since I am REO/Short Sale agent & also provide BPO's to many lenders & valuation companies...so this is based on my experience.
I hope that helps.
I would answer yes to this question. When I sell short sales I submit all information, and then some, to the lender. They will take a look at the offer and what the ballance is on the note. They will then order a BPO (Broker Price Oppinion) It takes me a few hours to complete one and send it to the lender.
I would keep close tabs on the lender to make sure they received the BPO back and have progressed to the next stage of the process. You should know after this step if your offer is accepted, but be patient. It can take 2 - 3 weeks for this part.
This is my experience here in NC and the short sale process is pretty much the same all over the country, but I bet there are a lot of other agents in NY that are more familiar with timeframes in your market and can provide you with additional information.
Wilkinson & Associates