The longest short sale ever! How long will it take with two loans?

Asked by Nybaby0126, Granada Hills, CA Sat Oct 30, 2010

I put an offer on a townhome a few thousand over the asking price. Originally this home was listed higher and was already in escrow by someone else who fell out. Now the listing agent is selling it way lower than it was before but the homeowner took out two loans. It's been about 2 months and no response. The listing agent took the property off the market so no other offers can be accepted. So if I am the only one, why are they taking so long? The most updated news I got was the bank is sending an appraiser on Monday. Is this a step closer? And am I able to make an offer on another property while waiting for a response from this one? I'm getting very inpatient with the whole process

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Shawn Burns, Agent, Scottsdale, AZ
Sat Oct 30, 2010
Sadly, I would expect it to take quite a bit longer, which is probably not what you want to hear.

You mentioned that there are two loans on the property. Do you know if the two loans are through the same lender? Generally speaking, once the appraiser goes out to the property, you can expect that it will take some time for the negotiator to send out a letter of approval which will outline where the money will be going in relation to each party (first loan, second loan, title, agents, etc) if the short sale is approved. In that case, the second loan will then begin their review of the file once they know they will be allocated a certain dollar amount. They can still deny the short sale at that time.

If time is of the essence for you, I would speak to your agent as soon as possible. You would need to review your contract thoroughly to see what the reprecussions would be, if any, for canceling the contract which would be good to know should you decide to submit an offer on another property.
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Shawn,
I am in the process of buying a home which is going thru a short sale-
-the process has been going on for 6 months
-one month ago the first mortgage holder agreed to terms and a price with me but we are waiting for the second mortgage holder to sign off-
-Both loans are with the same bank back east some place-
My question is about the second- Can they stop the deal that we have with the major lein holder? What's the longest amount of time a second has taken to give an answer? I was told they would answer by the end of June and still nothing-
Any information would be helpful-
Thank-you
K Bleeker, Scottsdale, AZ
Flag Mon Jul 9, 2012
Bob Georgiou, Agent, Danville, CA
Sat Oct 30, 2010
Yes, you are getting impatient with the whole process, but you are not alone in your feelings. That is why short sales quite often dont sell or sell below market prices. Buyers won't wait. 60 days for a response is average and B of A (in some cases) still takes 6 months. Good lusk.
Web Reference:  http://bob2sell.com
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