how long does it take to get an answer regarding an offer on a short sale?

Asked by threedogdan, Albuquerque, NM Thu Jul 5, 2012

I made an offer on a short sale back in February and haven't heard anything back yet.

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8
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri Jul 6, 2012
Sounds like the answer was no. The lender isn’t required to do anything.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
1 vote
Leigh-Jo Anz…, Agent, Albuquerque, NM
Fri Jul 6, 2012
Hi Dan,

As you have seen below, the time frames vary. Some short sales with the same bank (i.e. Bank of America) can take a couple months or several months to receive a reply . A response from a bank can be held up if the listing agent hasn't provided all the necessary items that the negotiator has requested.

It takes overall cooperation with the listing agent, buyer's agent, seller and buyer to get a short sale to the closing table.

If the property is being appraised or BPOs are being performed, it can further delay the bank's response since they may be looking to consider the offer based on the information received from the appaisals/BPOs.

Hang in there.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference:  http://www.Syan.com
0 votes
Steve Quinta…, Agent, Albuquerque, NM
Thu Jul 5, 2012
The answer time depends on a number of factors. I would prefer to know your situation better before I write a long essay covering every possible contingency.

You probably have a broker now who has proof the short sale approval application has been submitted and received by the lien holder. Feel free to contact your current broker and ask for some kind of written proof of short sale status.

All brokers have a duty to cooperate. My opinion is this includes keeping buyers up to date on the status of a short sale.
0 votes
David Staffo…, Agent, Albuquerque, NM
Thu Jul 5, 2012
It can take anywhere from 2 to 10 months; however, if the listing agent stays on the lienholder, they should have gotten you some sort of response by now. This often means your agent needs to stay on the listing agent to stay on the lienholder! You need to press for a meaningful update. Also, you might have your agent submit a new offer. And if the lienholder is Fannie or Freddie, they should be complying with new federal laws requiring quicker response time (30 days or 60 with weekly updates). If your agent is not communicating with you or the other agent with some regular frequency, they need to... or you need to find a better agent! Good luck!

David Stafford

360 Ventures Real Estate

505.750.3360
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Jul 5, 2012
I would bet that if you have heard anything in five months, that you are not going to hear anything:
The Banks are not in the habit of responding to anyone except the winner.
This is just the way business is now-a-days; not like when I was a kid.

If the house is still available, after five months you will have to start all over again; the Market has changed that much.

Move on; find another house.
0 votes
HI Ron,
Not true in ABQ, NM. By "not hearing back yet" we don't know if the buyer means that his Broker hasn't been given a formal response from the bank yet or what phase of the offer process they are in. I have completed many short sales that from start of offer to the celebration table has been 6 months. Now, if the buyer is not represented by a buyer's agent AND has heard "nothing" that is a different story. We just don't have enough information to go on at this point to best counsel this buyer.
Flag Thu Jul 5, 2012
Toby Atencio…, Agent, Albuquerque, NM
Thu Jul 5, 2012
It should not have taken that long... perhaps the house that you made an offer on has gone into foreclosure or there is another offer pending....
Most banks are actually getting it together and producing their answers back to the offer that has been made in a week or two... ?
Something sounds a miss???

Toby Atencio
Associate Broker
Commercial Brokerage, LLC
505-263-0233
0 votes
Adam Pehrson, Agent, Albuquerque, NM
Thu Jul 5, 2012
This is a good question to ask your Realtor, and have them work through the lender on to get a response.

Every lender is different, but usually within a couple of months you can get a response.
0 votes
Mary Padilla, Agent, Albuquerque, NM
Thu Jul 5, 2012
HI!

There is no easy answer to your question. There are hundreds of lenders holding the notes on the short sales. The lenders can be very efficient in their short sale process, using a middle man to assist in their loss-mitigation process, thus resulting in a short sale in as little as 60 days. But, there are many more that are deluged in short sales, understaffed, unorganized and hand off the package internally many times before we see any action.

Some questions I would ask you:
Are you represented by a qualified Buyer Broker? If so, make sure that they are contacting the lien holder at a minimum of once a week.
What process is your short sale at? Has a BPO (appraisal) been completed? Have you done inspections yet? Or, has your seller not even done all of their part by providing updated pay-stubs, bank statements and tax documents. As a buyer, these are the type of things that you need to know.
The average short sale seems to take between 3-5 months, which shows that you are still in that average.

Get your questions answered and then, if things do still seem like they are moving along, hang in there because the outcome of home ownership at a reduced (often 10%) price is the prize!

http://www.YesRealtyNewMexico.com
(505) 440-4878
0 votes
The appraisal had to be done twice, and is complete. I am represented by a qualifying broker, and am in constant contact with them by phone and e-mail. Evrytime that we pose the wuestin to the lender we are told "anyday now" I hear that Bank of America is notorius for taking a long time on these transactions. We will remain patient. thank you for your advice.
Flag Thu Jul 5, 2012
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