Home Buying in Henderson>Question Details

Zz, Home Buyer in Nevada

Short sale time line

Asked by Zz, Nevada Wed Aug 6, 2014

We put a bid in for a short sale,now waiting for bank approval,but we hear it takes 3 to 5 months to get an answer. What if we find another house and it's taking longer to close the short sale, can we cancell or maybe we should have put that in the contract.I would appreciate an answer. Thank you..

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6
What does your contract say? Usually when you submit an offer on a short sale you put a time limit such as 90 days or 120 days. If you do not hear something from the bank regarding your offer within that time frame, then you can cancel the contract. The time it actually takes is different with each short sale and the circumstances involved. Right now it is taking anywhere from 3 to 6 months.
0 votes Thank Flag Link Fri Aug 8, 2014
In Las Vegas and Henderson, usually there is a short sale addendum attached to the purchase contract which specifies that the buyer must stay in the contract for a minimum length of time while waiting for a response from the bank. The addendum specifies time periods from 45 days to 90 days. After that, the buyer is able to cancel the contract with no penalty if a response has not yet been received from the bank. You should check your contract to see if a short sale addendum was included and what the time period states. You should also ask your real estate agent that prepared the contract to help you with this.

Otherwise, there is no set time frame where the bank must respond. I have literally seen short sales take anywhere from 30 days (that was with a very small bank) to over 2 years. You can read more about why here:

http://www.greatlasvegashomes.com/las-vegas-short-sales.php

Hope this helps!

Diann Tonnesen
Berkshire Hathaway HomeServices
sold@GreatLasVegasHomes.com
702-985-7654

The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
0 votes Thank Flag Link Fri Aug 8, 2014
To maybe get a negative answer...short sales are NOT what they used to be.
0 votes Thank Flag Link Wed Aug 6, 2014
Used to take that long, these days I'm experiencing response times in 2-6 weeks.
Yes, you need to write an offer that allows you to back out if you get tired of waiting, but if you hang in there, short sales are a great way to get a deal.
0 votes Thank Flag Link Wed Aug 6, 2014
Be mindful that each short sale is unique, therefore there are no set standards of time; much will depend on the lender, the number of liens involved, who is negotiating the sale on behalf of the seller, is/was all the required paperwork submitted in a timely fashion, etc.; so review your contract with your agent and or, attorney before considering any other purchase...
0 votes Thank Flag Link Wed Aug 6, 2014
Zz,
A properly written contract for your short sale purchase has timelines in it. Depending on how your's was written you may be able to walk away anytime or be obligated for a period of time. Lenders have their own timetable and will not be motivated by anything you, the seller's or the agents do to speed things up. Seller's can slow the process down if they don't cooperate and provide necessary documentation in a timely manner.
Start by reviewing your contract or asking your agent. Next, regardless of what the contract says, keep your eyes open as if the right opportunity comes along, it may be worth losing your earnest money, which is typically the only thing you have at risk.
I've had short sales take 3 months, I've had them take 19 months. No two are the same. I wrote a blog piece attached below regarding all that's involved with getting a short sale approved, it may be helpful to you.
0 votes Thank Flag Link Wed Aug 6, 2014
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