Home Selling in 32828>Question Details

Ellen, Home Buyer in 48322

how long for a short sale to be approved?

Asked by Ellen, 48322 Thu Jun 16, 2011

we have put an offer on a home with an approved short sale and were told it could take 30-90days

Help the community by answering this question:



We've had "short sales" approved and closed in a little as 3 weeks......but on the other hand, we've also have some that never get approved and never close.

Unfortunately the specific information you require is likely unavailable but you can be assured that the answer rests somewhere between the two scenarios mentioned above.

Each short sale is unique unto itself and the only thing we can plan for is......uncertainty itself.

3 votes Thank Flag Link Fri Jun 17, 2011
A watched pot.......even with an approved short sale.
Web Reference: http://www.321property.com
3 votes Thank Flag Link Fri Jun 17, 2011
It could take even longer depeneding on the factors involved. If there is more than one mortgage, if there is an HOA to deal with, and which lender you are dealing with etc.
Each one of those pieces adds time onto waiting for the approval.
If there is only one mortgage and no HOA then you are looking at approximately 90 days
If there is 2 mortgages then you are looking at approximately 90-120 days
1 vote Thank Flag Link Tue Nov 8, 2011
It will make no difference if a short sale option is approved or not related to time. This is similar to the "pre-qualified" and "pre approval" lender letter related to a buyer obtaining mortgage financing----however, "approval" sure looks and sounds good. Good luck to you!
1 vote Thank Flag Link Mon Oct 3, 2011
Yes, it could be 2 weeks or it could take 6 months... hopefully it will be shorter because the seller actually qualified for a short sale and the sale price was "approved".

Also just so you know, the lender and (PMI company if any) may require the seller to send in their most recent bank statement and pay stub so the seller may no longer qualify..

You need to continue looking up until the day you get the short sale approval letter in your hands.

You're ahead of the game with a previously approved short sale so you have a higher probability of actually being able to buy the house at the "pre approved" price.

If you try a lower price than the "approved price" it may not be possible... just an fyi.
1 vote Thank Flag Link Thu Jun 16, 2011
I have done many short sales, and they have all differed in length of time. However, I can say that the average time on the market lately has been around 3 months once the contract has been signed. Several factors play into the process including the number of mortgages, which banks are involved, how many liens are on the property, etc. It's also important that your listing agent follow up daily/weekly on the progress of the short sale. This can make a huge difference in the process!!!
0 votes Thank Flag Link Mon Sep 24, 2012
a short sale can take a long time as much as six months and and as low as four months. At Prudential we work directly with an attorney which has a program that both you and I can access to follow the process of the short sale prior to approval. nikki@floridahomesbynikki.com or 321-279-2959
0 votes Thank Flag Link Mon Jul 30, 2012
It really depends on how long ago the previous offer was approved. If it has been more than a couple of weeks, they pretty much start over again. They ask the seller for updated financial statements and they get another updated broker price opinion, another estoppel letter, etc. So, there are many factors to take into consideration. Just because it says an approved short sale, doesn't mean it won't take as long as a non-approved price short sale.

Have the person who is handling the short get the specific details for you. I have had some pre-approved price short sales take 30 days and other have gone into 3 months. None are ever the same, so there is no exact answer for you. It is just a wait and see when you are buying a short sale. Good luck.
0 votes Thank Flag Link Tue Nov 8, 2011

You said:

"we have put an offer on a home with an approved short sale and were told it could take 30-90days"

That's about the norm. Don't let anybody tell you any different.
0 votes Thank Flag Link Mon Oct 3, 2011
We have a short sale processing company who process short sales for Attorneys, Realtors, and Title Companies. When a Realtor posts that a property is approved at listing price, most often is because this property had a contract that fell through with a previous buyer and the list price was approved by lender. Most times, this approval is buyer specific meaning that the lender approved the short sale based on the previous buyer conditions. When a new buyer comes in to view, most times the process starts all over again because the previous approval was specific to the previous buyer.

In your case, if your Realtor advice you to put a fair market value, the listing agent know how to process the short sale, the seller has a valid reason to sale via short sale, and the investor who owns the mortgage note agrees on the terms and condition, you should have a chance to close in about 3 months. Why 3 months? It takes an average of 2 weeks for a short sale file to be assigned to a negotiator, then the Realtor or processing company start sending short sale documents pertinent to seller, then the information gets to the investor, then they have to make a decision, and finally an approval letter is assigned providing around 30 to 45 days for buyer to close.

This is a general timeline of what happens during a short sale purchase. This is not including if there are other contingencies such as an inspection, financing, and so on.

If you have any questions, feel free to contact me and I will be more than happy to assist.

Javier Rodríguez
HouseStar Realty Group Inc.
Real Estate Broker
Lic: BK703443
Certified SFR Short Sale and Foreclosure Resource
O: 407.429.5243 | P: 407.301.3401 | F: 407.373.0064 | eFax: 407.264.6260
0 votes Thank Flag Link Tue Jun 28, 2011
Hello Ellen,

All the previous responding real estate professionals have provided you with good advice and opinions, however I will put my two cents in for what it may be of worth to you and others who may choose to go the short sale route to purchasing a home.

Hopefully you have secured the services of a Realtor who is well versed in the in's and out's
of short sales who has asked the right questions before showing you the property and writing up the contract/offer for you. It's a positive indication if the listed property has a "lender approved" selling/list price, but that does not necessarily indicate you are the "best qualified buyer" to be successful in the short sale transaction. Who is doing the negotiating with the seller's lender... are they experienced and do they have a good track record? Also, an important thing to consider... has an up-front title search been done to uncover the possibility of multiple liens on the property that may be unknown to the listing agent which can cause long delays and/or failure in your getting to the closing table?

Not to discourage you or anyone else who has the time and patience to get into a short sale transaction, you can get a pretty good deal as there are definately some out there of which to take advantage.

I do hope the best for you in your desire to become a happy homeowner.

Suzanne Ogden, Realtor
Exit Realty Central
(407) 234-1098
Web Reference: http://www.suzanneogden.com
0 votes Thank Flag Link Mon Jun 27, 2011
First of all, you need to make sure that you have enough time. It takes anywhere from 30 days to 6 months or even more to get an answer on a short sale. It really depends on many factors. It requires a proof of funds letter if paying cash or a pre-approval letter from a lender if obtaining a mortgage. The seller must approve the purchase offer before it gets submitted to the bank. The bank may come back with a counteroffer or reject your offer completely. In some instances you may not even hear back from the bank at all.

I have 4 short sales in the process right now that my buyers put an offer on and it has already been 4 months and no response. The last 2 short sales took 6 months.
0 votes Thank Flag Link Mon Jun 20, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer