in a short sale, am I guarantee to close in time if I put it as condition with my initial offer ?

Asked by Joe4981, Edison, NJ Sun Feb 14, 2010

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Debra (Debbi…, Agent, Livingston, NJ
Sun Feb 14, 2010
BEST ANSWER
Joe, I hope you are working with an agent.
Please let them explain to you exactly how a short sale works. I assume, since you are in NJ, that you have or will find an attorney to handle the attorney review................ask him to explain the process, too.

If you need to close by a certain time - please know that short sales can take a very long time.......some as long as 6-12 months. It varies bank by bank.

Buying a short sale is not for everyone. If, for example, you have a lease that is up, or have sold another property and have to be in another home by a certain date, I'd reconsider attempting to buy a short sale, unless you have an alternate place to stay.

Nothign is ever "short" with a short sale. Nothing in a short sale is guaranteed, either. Just be aware of this. Be prepared to be patient.

Best wishes..
Debbie Rose
Prudential NJ Properties
1 vote
Dp2, , Virginia
Sun Feb 14, 2010
Another thing to keep in mind is that YOU might not be able to close in time too. What if the title work hasn't been completed by your scheduled closing date? What if your lender decides to change their terms (to ones that you don't like), or decides to back out altogether? What if the a city inspector orders a POS inspection, the property doesn't pass, and s/he insists on you (or the seller) doing several things to cure the property before allowing it to close?

The point is stuff like this (and plenty of other stuff) happens all of the time, so it's impossible to guaranty that a transaction will close by/on a certain date. However, there are some things that one can do to help increase the likelihood of closing on-time.
1 vote
Courtney Coo…, Agent, Seattle, WA
Sun Feb 14, 2010
NO. never. Short sales are dependent upon a lien holder approval and there is no guarantee that they will approve it - it might be successful at some point, but takes a very long time if it goes through at all unless it is preapproved as in they have alreayd gone through the process and lost the buyer that got tired of waiting. In these cases, the lien holder will sometimes let a new buyer write up the same terms if done fast enough.
Web Reference:  http://www.cooperjacobs.com
1 vote
Don Tepper, Agent, Burke, VA
Sun Feb 14, 2010
No. Of course not. Of all the different types of real estate transactions, short sales are probably the least predictable and often take the longest.

Further, you're not even guaranteed to close at all. The lender (or lenders, when there's a first and second held by different lenders) may not agree to the transaction. Or, while they may agree, you may find the property foreclosed before the short sale can be completed. Or you may find that the seller is reluctant to supply all the information that must be supplied with a short sale.

Your best chance of closing on a schedule of your choosing is to get pre-approved for a loan, and then buy conventionally. Use an experienced Realtor as your agent. Still no guarantees, but at least that will improve your odds.

Hope that helps.
1 vote
Fred Glick, Agent, Mountain View, CA
Sun Feb 14, 2010
Hahahahahahahahahahahahahahahaha!

No offense to you. The short sale bank probably is 99% unable to get it together in time.

Be prepared to wait and make sure you have the agreement of sale cover you as to the closing date.

Seriously, good luck and keep the pressure on the listing agent.
Web Reference:  http://fredglick.com
1 vote
John Juarez, Agent, Fremont, CA
Sun Feb 14, 2010
Joe,

Your question makes me want to laugh until I cry. Mostly cry.

The only guarantee with short sale is pain and suffering. Even when they close, they are filled with surprises.

A real surprise would be the ability to have them close by a certain date.

If you need to close by a certain date, for instance, to take advantage of the first time buyer’s credit, don’t count on making that date with a short sale. Your may close on time but you better have a plan B.
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Sun Feb 14, 2010
Hello Joe and thanks for your post.

Simple answer: "no."

The banks will move as fast as they can (or please), and they will ignore any stipulations requiring them to move faster. Trust me, we've all tried this one with no success.

Good luck!!

Sincerely,
Grace Morioka, SRES
Area Pro Realty
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Feb 14, 2010
simply put, NO. The bank has its process and it takes time to work through it. Im most cases once the offer as been submitted and the short sale package with the seller sinformation has been submitted, the bank has 30 days to assign a negotiator, the negotiator will then review the package, if everything is there they will order a bpo or appraisal. this is uuslaly a 2 week process. if the selle =r is missing anything add those days. Once the negotiator has teh appraisal back, they can submit an approval or what they will approve, usually with 7 days of receiving everything. so best case it is at least 60 days, most cases are 90 and sometimes 3-6 months. what you write for a drop dead date, has no factor in how quick they will work, it could get your offer refused as if tehy do all teh work and you pull out, it will have been a waste of time and money for teh agent, the seller and the bank.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Feb 14, 2010
No, with short sales there are no guarantees that they will close on time--some lenders are quicker than others when it comes to approving the sale, but again, no guarantees on how long that step will take as well.
0 votes
Patrick Thies, Agent, Anytown, IL
Sun Feb 14, 2010
Even with a traditional sale there is no guarantee that you will close on the contracted date. As has already been stated, the bank needs to approve the short sale. There is no way of knowing when that will be. It could be anywhere from a couple of months to 6 or 7 months down the line.
0 votes
Ron Humes, , Lexington, KY
Sun Feb 14, 2010
There is only one guarantee in real estate contracts - "THERE ARE NO GUARANTEES!" That's why we have legal terms like "Breach of Contract", "Specific Performance", etc.

Be as clear as you can in the contract to cover the potential contract shortfalls with specific language to handle the unforeseen. Always answer the question like a chess match ... "If they do this, I will do this and this will happen."

Good Luck.
Web Reference:  http://www.lexre.com
0 votes
Team Wickham, Agent, Eugene Oregon 97401, OR
Sun Feb 14, 2010
There is no way of making sure your closing date is the date you want even if you put it in an offer. The seller can accept it that way but you have to remember you are dealing with the lender on the property and he has the final sale. If there is a second on the property you have to have an acceptable offer with both lenders as they are propably both getting less they originally lend.
I always tell my clients that short sales can be a great deal but you just never know if the offer you submit to the seller is going to fly with the lenders. You can get a good deal but be prepared to wait for some time to actually close. It really depends on the listing agent as to how good he is in working with the bank and how many files the lender has on his desk.
0 votes
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