Deborah, Home Buyer in Oxnard, CA

How long does a short sale take?

Asked by Deborah, Oxnard, CA Sun Mar 22, 2009

I am wondering how long it takes to purchase a short sale, the shortest time and the longest the sales have taken.

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Answers

11
Patti Philli…, , Carlsbad, CA
Sun Mar 22, 2009
BEST ANSWER
Deborah, I have recently had 2 of my short sales approved in 1 week by the lender. In today's market, one never knows what will occur. Certain lenders are approving more quickly. Litton Lending, San Diego County Credit Union and Downy Bank are all seeming to move along quickly on their approvals. In all cases it really depends on the particular bank, their employee and how badly backed up their desk is!

Patti Phillips
"Advice You Need, Attention You Deserve!"
0 votes
Andy, , California
Sat Nov 20, 2010
The longest I heard was over one year. Most of them I know were 4-6 months and that depends on the lenders, especially jr liens (2nd loan, 3rd loan).

By the way, a new law about SS will be effective at Jan 1st, 2011.
0 votes
Robert Nowak, Agent, Chicago, IL
Fri Nov 19, 2010
It can take anywhere from 1 week to 3 months to get a short sale approval. Some HAFA short sales have a pre-approved list price making final approval quick and easy. Homes with previous low ball offers may have an approved sale price and can also close quickly since they completed the process. Every short sale is different, they require a listing agent that is organized, detail oriented, patient, and a great negotiator without causing conflict. If the deal is not handled properly it may not close.
0 votes
James Gordon…, Agent, Hamilton, OH
Thu Feb 4, 2010
Deborah in my experience I have had shorts that are 2 days up to 90 days to close when I am the listing agent. Some short sales will never close. I had a buyer that made an offer on a property. The property was an investor owned rental. The lender chose to forclose and go for a deficiency judgement on the investor.

So I guess that the answer could be 2 days to never.
Web Reference:  http://www.Find1Home.com
0 votes
Jane Grant, Agent, Aguanga, CA
Wed Feb 3, 2010
Deborah: Each short sale is different. Banks differ a great deal on how they are processed. The shortest one I have represented a buyer only took ony 35 days however the longest one took 9 months. I can tell you that most people who go through the process are so glad when it is over that they are glad they waited for their home.
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J9, Home Buyer, Santa Clarita, CA
Wed Feb 3, 2010
It took us a little over 6 months from start to finish. Just hang in there. I know the anticipation drives you nuts. Distract yourself with something else if you have the time to wait. The pay off will be worth it in the end!
0 votes
Michael Wolff, , Encino, CA
Mon Dec 14, 2009
I am a Real Estate Broker in Encino, CA. I have seen short sales take 2-3 months and as long as a year or more depending on many factors such as buyers choice of financing, the number of liens on the property as well as who the investors and servicers are on those liens.
0 votes
Bill Eckler, Agent, Venice, FL
Mon Mar 23, 2009
Deborah,

"Short Sales" can require time and patience. The amount of time can vary from 2 -5 months for the home to close.

Our recommendation is to consider short sales with bank approval more seriously then those that are not pre-approved. If the bank has approved a price for the home you can normally plan on a shorter amount of time to close.

On the other hand, it could require an extended amount of time.
0 votes
The Hagley G…, Agent, Pleasanton, CA
Sun Mar 22, 2009
the site below is a great resource for short sale buyers and sellers.
0 votes
Andy, , California
Sun Mar 22, 2009
Deborah,

I can not remember how long ago I answered a similar question regarding SS. The same as REO, The tempo is generally decided by the lender. The difference between REO and SS is lender is the seller in REO but lender is just a contigency approver in SS. That means in REO, lender must response everything under the contract whatever yes or no, but in SS, lender can keep slient there or delay the response. Of cause, in REO, lender prefer to use counter offer to rewrite buyer's CAR purchase agreement and make the terms to benefit lender. In SS, do not think that buyer or agents hav elegal right to push lender to make decision. That is just a contigentcy. Remember, on buyer's side, buyer has no right to ask buyer's lender to approv buyer's loan.

Some of lenders in CA prefer REO not SS. They have some internal issues. 30 days, 60 days, 90 days are popular but do not let your clients misunderstand that you gurantee it. Otherwise it is going to be dangerous. Do not put yourself in hot water.

Good Luck!

Andy
0 votes
Michael Wolff, , Encino, CA
Sun Mar 22, 2009
It can take anywhere from 30-60 days up to 90-120 days! Depends on the area, the lender, the strength of the buyer and the details of the short-sale package.

An experienced agent can help you through it as quickly as possible.
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