how long does a short sale take?

Asked by sunset.9098, Azle, TX Sun Nov 18, 2012

I am living in my home, there is an offer on it, it is a short sale. How much time do I have before I have to leave?

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4
T.E. & Naima…, Agent, Dallas, TX
Tue Nov 20, 2012
Each bank or servicer is different. Some banks answer the offer with an approval or disapproval within 3 weeks. Some banks are so confused internally that after 5-6 weeks they still don't have an answer. And, like Don, I had one that dragged on for 14 months and then when we were finally going to get approval (verbally told that), the HOA foreclosed and messed everything up.

As a seller, you should expect at least 3 weeks longer than a normal sale. A normal sale takes about 2 weeks for a cash offer, 5 weeks for conventional and 7 for FHA/VA, typically. The approval will tell you that the normal process is starting and you can ask your Realtor how much time after the Amended Execution date (bank approval) you have to close. You will have to leave by closing.

The buyer can make a deal with you to allow some variation from the move-out and often this is a couple of free days (no cost to you).

It is sensible to prepare (find a place), but to minimize your cost, you should not actually begin the process to move until bank approval is granted.

If the bank counter-offers the buyer (disapproves), then the clock is still running until the buyer raises his offer to meet the bank's counter. Typically, the minimum 3 weeks is when the counter arrives and another week or so is needed to resolve the counter and get it approved. Sometimes buyers back out before approval or refuse to raise their offer to meet the counter.

Finally, banks frequently offer cash for keys. That is, if you move out on time voluntarily, they give you cash. It usually is enough for security deposit on a rental and ranges from a few hundred to a few thousand. I've never heard of getting more than $5k.
Web Reference:  http://www.SumnerRealty.com
0 votes
Don Groff, Agent, Austin, TX
Sun Nov 18, 2012
It's really hard to say. I have had short sales that took as little as 60 days and some that have dragged on for even over a year. It really depends on how far along you already are in the process. Did you go through the loan modification process? It is usually worthwhile to try that even if you do not believe you will be approved because it typically enables you to get relocation assistance. I have had clients of mine get between $2500 and $15,000 with the different programs that are out there.

I would speak with your agent and he or she should keep you in the loop as to the progress that is being made.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes
Thanks for your info. My lender is Chase and I have gone through other programs with them. I had applied for a loan mod but they said I didn't qualify since we no longer have enough income. I lost my job. They told me I could get $1000 at the most back and that if it takes longer only $750. What other programs are avaliable? I live in Arizona maybe it's different here.
Flag Tue Nov 20, 2012
Raynette Cos…, , Azle, TX
Sun Nov 18, 2012
You might be fine. when do is the closing?
0 votes
Raynette Cos…, , Azle, TX
Sun Nov 18, 2012
It would depend on the bank or who ever held the mortage.
0 votes
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