how long will a shot sale take after the bpo is done?

Asked by Beau6483, Frederick County, MD Fri Aug 22, 2008

I made an offer on a short sale on 7/24 for 235,000 that was listed at 250,000. On 7/15 she called my ageny and told her that the bpo is done, and she submitted all the proper papers the bank ask for and she calls the bank every day. I was just wondering how much more time am i looking at.

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Scott Godzyk, Agent, Manchester, NH
Fri Aug 22, 2008
It could take 3-6 months. Unfortanately a short sale is long and drawn out. There are no guarantees. The banks has to first approve the finacials of the seller to see if they qualify for a short sale, often this part is skipped and an agent will try to submit everything at once, this is what takes teh time. Once a person is accepted to do a short sale, there is still no guarantee as the numbers have to work for the bank and the seller. The bank will setermine if the seller has the finances to pay back the balance between what the owe and what it is selling for. If so the bank will ask them to sign a note fore the balance. If not the bank will give them a 1099 for whioch the seller will have to pay taxes on this forgiven amount. Then when you get to the actual sales price, the listing agent has to submit a net sheet that shows all the expenses to be paid at closing like back taxes, water bill, sewer bill, hoa fees, commission and such. The bank then has to determine if they are better off taking the short sale or recouping their money in foreclosure, if there is private mortgage insurance then the bank doesnt haveto take a loss as the PMI will pay the balance or take the house. So the bank has no incentive to rush and get these things done. Good luck with your purchase, constant/daily communication is key.
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Sam Shueh, , San Jose, CA
Wed Sep 2, 2009
it is hard to predict. some takes 5-6 months to find out your offer gets rejected.
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