how long is it currently takin for the lender to approve a short sale after the seller accepts the offer? what is the process?

Asked by stephenr, Sacramento, CA Mon Oct 1, 2012

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Maria Cipoll…, Agent, Coral Springs, FL
Tue Oct 2, 2012
It depends. While no two transaction are exactly alike, if the seller provide all the documents (very important for a sucessful short sale) to the listing agent and the negotiator assigned to your case answer fast, it may take up two months. Not only does a short sale require buyers and sellers to reach an agreement, but the banking institution must also approved the transaction.

Best of Luck,

Maria Cipollone
2 votes
MaryAnn Morr…, Agent, San Diego, CA
Tue Oct 2, 2012
Jim gave you a good answer - indeterminate

If the stars align it could be quick if not it could drag on for months
1 vote
Nataliya Pro…, Agent, Orangevale, CA
Thu Oct 4, 2012
You got some pretty good answers here, the overall theme being - "It depends"
... Depends on the bank for the most part, but also on the type of short sale.
The best thing you can do to help things move smoothly in the right direction is to make sure you follow through with all the paperwork if/when your agent, or the negotiator working with your agent, requests it.
Everything else is really out of your hands.
0 votes
Jim Walker, Agent, Carmichael, CA
Tue Oct 2, 2012
Length of time is indeterminate. Processes are widely varied depending on the bank, the sellers situation, the listing agents procedures and the phases of the moon. - Okay not the last one.
0 votes
Nick Gandhi, Agent, Stamford, CT
Tue Oct 2, 2012
Your agent will have a better understanding of the process since every bank, their requirements are different. If the offer is presented to the bank for the first time, it may take several months. On the other hand, if the bank has approved a property for short sale, it could be as little as a few weeks.


Nick Gandhi
Equity Capital Real Estate
(203) 280 3838
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Oct 2, 2012
Your agent can better advise....much will depend on the number of liens involved, the lender, who is negotiating the sale on behalf of the owner, was/is the required necessary paperwork submitted on a timely fashion, etc.
0 votes
Centermac Re…, Agent, Fremont, CA
Tue Oct 2, 2012
Typically it takes about 4 to 6 months to go through the short sale approval process, longer if a second lender is involved. You will submit the purchase contract along with short sale documentation including your hardship letter, financials, lender's application forms. Generally it then goes into 3 stages. Usually the servicer will screen the application for preapproval, then the bank will order a bpo and it goes to the underwriter, then negotiation on the price, and finally investors approve it.
0 votes
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