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.
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
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.
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.
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.
HouseStar Realty Group Inc.
Real Estate Broker
Certified SFR Short Sale and Foreclosure Resource
O: 407.429.5243 | P: 407.301.3401 | F: 407.373.0064 | eFax: 407.264.6260
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
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.