They also have to review a pretty in-depth package of Seller financial information to determine that there is a hardship that has come about since the owner purchased the home that makes them eligible for the short sale.
On top of this there are thousands and thousands of these processing with every major bank. They are understaffed to handle this.
Many home buyers enter the short sale process with improper expectations.
That is the problem.
On Tuesday I closed on a short sale that began on Feb 16 2012. At what point did it become too long? Eleven months is still short of forever.
In a traditional real estate sale there are seven parties that can kill any deal. In a short sale, this number explodes! Not only the parties currently identified by other agents responding here, but there are the 'other' bulk buyers and investors who are picking the bones of distressed real estate. Let's not overlook that the seller has an end game also, in the event the bank or investor chooses to stall or advance with a shakedown.
Short Sales should be retitled:
"I BELIEVE IN MIRACLE!" sales.
When a MIRACLE does happen, every agent involved should get bonuses. That never happens.
Those who have been in short sales for a few years have ceased asking, "Why?"
More often we lament, "Why me?"
Deserving folks want to buy homes. When the new owner emerges from the closing process, beaming, with their hands holding the keys to a 'miracle' ..... the reward is being a part of the process...of making miracles happen. The same words. "Why me?" express true, unfathomable gratitude for being allowed into the lives of those who trusted us.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Personally my life is too short and my time too valuable to waste it on short sales unless they are clearly indicated as being pre-approved by the lender. Statistically only half the short sales in my area are ever approved by the lender and wasting 90-150 days to find out the sale isn't going anywhere is not a productive use of my or my clients time.
All short sales vary in time depending upon a number of factors i.e. numerous liens, the quickness in which paperwork is processed, short sale system utilized i.e. equator. I always tell my clients to anticpate 6 months. Now some short sales happen quickly others have taken over 12 months. A lot of time the banks are providing a service for investors, so final approval comes from the investor. would you be in a rush to collect 1/3 of the investment back?
There are actually more factors too. But this is the main reason they take so long.