Home Buying in Lees Summit>Question Details

Slickster, Home Buyer in Lees Summit, MO

How long does it normally take to close on a home that is a short sale?

Asked by Slickster, Lees Summit, MO Mon Oct 12, 2009

I am preapproved for an FHA loan and qualify for the first time home buyers credit but have been told there is not time to close on a short sale by Nov. 30. Is that true?

Help the community by answering this question:


You are probably correct in assuming that you may miss the deadline. The length of the short sale process is largely dependent on the lender who holds the current mortgage. Often the lender will wait for multiple offers and then come back with a request for "highest and best", trying to create a bidding war.

The process can take weeks.

D. Ben Edsall
Turn-Key Properties LLC

Our Lee's Summit / Blue Springs agent can be found at: http://www.tiffanyhouses.com
0 votes Thank Flag Link Tue Oct 13, 2009
Very likely true. Six weeks is sufficient to close on a regular transaction. But short sales generally take at least 2 months. Four is more like it. And it's not unusual for short sales to take 6-8 months. (I've heard of some taking over a year.) And remember: A lot of short sales never are completed. They fall through because the bank or banks won't approve it.

Work with a good Realtor and find yourself a home that meets your needs, is affordable, and that you can close on quickly.
0 votes Thank Flag Link Mon Oct 12, 2009
Don Tepper, Real Estate Pro in Burke, VA
I have to agree with the others, if you have not already started the process it is highly unlikely that a short sale will close by the deadline. If your motivation is to be eligible to receive the tax credit, then you are going to need to stay away from short sales. You actually need to get a home under contract very soon or you may find it hard to close by the deadline. If you are not currently working with an agent, I would be happy to assist you.
Web Reference: http://www.sherrioaks.com
0 votes Thank Flag Link Mon Oct 12, 2009
Unless the First Time Home Buyer Credit is extended, you may want to steer clear of short sales. At this point, you will need to be very selective. Do you know what a short sale is? It's a sale of a home that will sell short of the amount owed. This means that after the seller says yes to your offer, the bank and quite often banks need to agree. This is called bank approval. I am in the middle of two short sales at the moment. One is with a very large institution and they took a month just to upload the offer. On the other hand, I submitted an offer to a smaller entity on Friday and am already talking to the negotiator who see's the offer on his screen today. If the offer were more, we'd probably have approval by the end of the week. That certainly hasn't been the norm though.

REO, or bank owned properties push for a very short close; however, your lender may not be able to accommodate. Talk with your agent. Find a home that will close by November 30. Be certain that your offered purchase price will appraise at or above fair market value or you may find yourself having to come up with more money down or worse, staring over. Good luck to you.
0 votes Thank Flag Link Mon Oct 12, 2009
Yes, time is short. I have been waiting for more than 90 days for an answer and being with one of the larger lenders that have a huge case load there is no telling when we will get word.

Currently with the real state market having an abundance of homes on the market, you and your real estate agent should be able to do some good negotiating for your favorite home.

Good Luck!
0 votes Thank Flag Link Mon Oct 12, 2009
There is probably not enough time to do a short sale by the deadline. Short sales take months to get approval and even longer to close. Even non distressed properties will have a hard time closing by the deadline.
0 votes Thank Flag Link Mon Oct 12, 2009
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