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Asked by Hlep, Los Angeles, CA Thu Jul 5, 2012

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Answers

14
Kawain Payne, Agent, Seal Beach, CA
Tue Jul 10, 2012
Hello Hlep,


Good news is short sales do not take as long as they used to.

The hold up is the short sale approval process. Now that most banks have gotten their acts together the process moves faster.

There are some factors that could come into paly that will still delay things for example:

1. If there are more than one lien holder. 2. If the listing agent is not well versed in the whole short sale process.

I try to guide my buyers to APPROVED SHORT SALES, to avaoid the headaches.

Best of Luck to YOU!!
Kawain Payne, REALTOR
0 votes
inna ivchenko, Agent, Calabasas, CA
Tue Jul 10, 2012
Once the lender approves( !!!!) the short sale, the normal time frames start and the buyers need to prepare to close the escrow and take possession. It can be as short as 10 days if cash, or as long as 40 days- it is the initial agreement between a seller( homeowner) and a buyer.

yet, I'd like to remind you: the approval process can take.....long time.
Example:
The standard short sale process, from submission to short sale approval follow these general time frames:

· Submission of offer and complete short sale package from the seller by the listing agent or the short sale negotiator......5 to 30 days (dependent upon efficiency and experience)

· Bank acknowledges receipt of short sale package--- 10 to 30 days.

· Bank orders a BPO (Broker's Price Opinion) or appraisal --- 30 to 60 days.

· File is reviewed --- 30 to 60 days.

· Negotiator is assigned --- 30 to 60 days.

· Level II negotiator may be assigned--- 30 to 90 days.

· File is approved or rejected --- 60 to 120 days.

Yet, it depends, each case is different. Constant communication with a bank is a key. You can have the approval really fast ( 30 days or less), or can be dealing it up to 11 months( yes, we see that too) Many times the negotiator request the same information numerous times until the clients( and agents) are worn out and frustrated.
Be patient while doing a short sale:)
0 votes
Kathleen Bec…, Agent, Santa Monica, CA
Sat Jul 7, 2012
Hi Hlep:

It takes as long as it takes. Depending on the bank, it could be 30 days or less. It takes sometimes 6 months to get the short sale approval...then escrow opens...but once you open escrow, typically 30 days.

Kat
0 votes
Tina Lam, Agent, San Jose, CA
Fri Jul 6, 2012
A typical short sale closes escrow in 30 days, plus or minus 10 days. The short sale approval process on the other hand will typically take 3-6 months. I've had one get approved in less than a month and another going on nearly a year (still going), but those seem to be the outliers.
Web Reference:  http://www.archershomes.com
0 votes
Terry Bell, Agent, Santa Rosa, CA
Thu Jul 5, 2012
Every situation is different, and that's why it's important to have an agent that you have been working with and trust their judgment to help you evaluate your choices. Short sales have up and down sides, and depending on your circumstances you have to carefully sit down and discuss the issues. For example, if you're not in a rush, there are some good deals through short sales, but if you have time constraints, you are better off with a foreclosure or regular sale.
0 votes
Neal Grusky, Agent, Los Angeles, CA
Thu Jul 5, 2012
There is no typical time period. It all depends on the lender, the offer,etc.

Good luck!

"NEAL KNOWS LOS ANGELES AREA REAL ESTATE"

Neal Grusky
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
(800) 652-1768
neal@hpremiere.com
0 votes
Richard "RJ"…, Agent, Beverly Hills, CA
Thu Jul 5, 2012
Depends on the bank but most take from start of process to end roughly 6 months, though many larger institutions, Wells, Chase, BofA are getting quicker, cutting time down to 4 months. Out of nearly 100 short sales that I had the listing, only 2 got approval within 2 weeks... all the others took several months, so if you are interested in a property, prepare to be patient... On the flip side, I have had more go 9-12 months as opposed to 2-3 months. Good luck.
0 votes
Sang and Son…, Agent, Los Angeles CA 90069, CA
Thu Jul 5, 2012
We have closed a short sale transaction that took almost 2 years. The length of time depends of many many factors. Please work with an agent with experience in short sales working with both buyers and sellers. If you need help, we are certified and experienced in short sales.

sangandsonya@gmail.com
0 votes
Stefanie McI…, Agent, Marina del Rey, CA
Thu Jul 5, 2012
That is a good question and there isn't a very straightforward answer. The time it takes to close on a short sale depends on a number of factors. Representing the buyer, I've closed as quickly as 60 days and I've had one that dragged on and on and actually never closed. The lender, the number of lenders, the experience of the listing agent, and the cooperation of the seller all factor into the time needed to close on a short sale. My recommendation is to interview your agent and be sure that he/she has successfully closed shorts. If you are the buyer, be sure that your agent knows how to interview the listing agent to make sure they are educated on the process. I actually have a list of questions to ask the listing agent. Feel free to contact me for that. Best,

Stefanie Stevenson McIntyre, REALTOR®
Keller Williams Realty
4644 Admiralty Way
Marina Del Rey, CA 90292
(818) 321-6522 Direct
(866) 371-6416 Fax
DRE# 01874509
http://www.soldbystefanie.kwrealty.com
0 votes
Lance King, Agent, San Francisco, CA
Thu Jul 5, 2012
There is no typical. I've seen them close in as little as 30 days, as long as never, and everything else in between. A lot depends on the lender, if there is more than one lender, and the listing agent's understanding of the process.
0 votes
Nadia Fahimi…, Agent, Santa Monica, CA
Thu Jul 5, 2012
Depends on many factors- the investor ,how many loans involved , if it qualifies for a HAFA short sale or not- historically only 30% of short sale transactions close-
Please make sure you're working with a Certified Distressed property expert or a short sale specialist to get the best representation.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Jul 5, 2012
Sometimes they never close and go directly to foreclosure auction.
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Bill Hooper, Agent, Los Angeles, CA
Thu Jul 5, 2012
It depends on many things, Who is the lender and how much is the shortfall will weigh heavily on the duration. In my opinion, a fast short pay would be say 4 months, some take 12 or more. To set the right expectation level, go with the 6 month average.

Good luck to you!

Bill Hooper
RE/MAX
bhooper@remax.net
0 votes
Sona Gallatin, Agent, Santa Clarita, CA
Thu Jul 5, 2012
Depends on which lender, investor approval and the terms of the new purchase.
It can seem like forever, but if the property is worth it, stick it out.

I've seen your name come up on a lot of questions, are you making this purchase without an agent? Do it yourself can seem easy but there's a reason why agents have to be licensed.

Good luck.
0 votes
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