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Average Length Of Time For Short Sale All Locations : Nationwide Real Estate Advice

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Showing results for Average Length Of Time For Short Sale [Clear search]
Fri Oct 6, 2017
Nick Rafello answered:
Since 2008, it really doesn't matter what year it is. And now, I take the 5th.

Nick Rafello
Senior Vice President
Associate Broker
The Corcoran Group
RAFELLO ROSENBLOOM TEAM
nrafello@corcoran.com ... more
0 votes 91 answers Share Flag
Tue Mar 6, 2012
Lorrie Feld, ABR,GRI,SRES, answered:
Since you don't have communication with the lender yourself, you are relying on the listing agent and their experience. Depending on the bank and how many loans there are will usually determine how quickly or how long the process will take. Also will depend on if there was already an approval on it and the buyer walked. In general the process most likely will take at least 90 days to receive approval. If you have the patience and don't mind waiting, you can get a good deal. The pitfall would be that you waited all this time and the bank doesn't approve the short sale and it ends up going to foreclosure and you wasted all that time. Today many of the banks would rather do a short sale than a foreclosure, so hopefully that won't happen as long as the offer price is pretty close to fair market value.
Good Luck in your search
Lorrie Feld
Keller Williams Integrity First
480-570-1074
... more
0 votes 7 answers Share Flag
Wed Mar 7, 2012
The Team Real Estate Group answered:
Lol, I like Marks answer...
Its going to probably take you longer to buy a short sale than a regular or REO sale, may take up to 6 months so you have to know that going in. You then may not get it for the "deal" that you thought when the bank comes back at a higher value. They are worth looking into and you can sometimes get that deal but you have to kiss a lot of pigs.
John Tremblay
Lic. Real Estate Broker
The TEAM Real Estate Group
1-888-580-TEAM
... more
0 votes 5 answers Share Flag
Mon Aug 29, 2016
Alistair Barrett-Powell answered:
Hi,

I hope this helps! Let me know if you have more questions :)

ap@miamiexec.com - 305.815.0880

-----

The Basics of a Short Sale

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

A few examples of a hardship are:

* Unemployment / reduced income
* Divorce
* Medical emergency
* Job transfer out of town
* Bankruptcy
* Death

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but -- with the exception of Wachovia, which is the best short sale bank in the world -- the basic procedure is similar from bank to bank.

The seller's short sale package will most likely consist of:
* Letter of authorization, which lets your agent speak to the bank.
* HUD-1 or preliminary net sheet
* Completed financial statement
* Seller's hardship letter
* 2 years of tax returns
* 2 years of W-2s
* Recent payroll stubs
* Last 2 months of bank statements
* Comparative market analysis or list of recent comparable sales

Writing the Short Sale Offer and Submitting to the Bank

Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value. The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers.

After the seller accepts the offer, the listing agent will send the following items to the bank:

* Listing agreement
* Executed purchase offer
* Buyer's preapproval letter and copy of earnest money check
* Seller's short sale package
* If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package.

The Short Sale Process at the Bank

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don't get an answer within a specified time period.

That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:

* Bank acknowledges receipt of the file. This can take 10 days to a month.
* A negotiator is assigned. This can take 30 to 60 days.
* A BPO is ordered. The bank probably will refuse to share the results of the BPO.
* A second negotiator may be assigned. This can take another 30 days.
* The file is sent for review or to the PSA. This can take 2 weeks to 30 days.
* The bank may then request that all parties sign an Arm's-Length Affidavit.
* The bank issues a short sale approval letter.

or.....The buyer cancels and the deal is dead.
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0 votes 9 answers Share Flag
Fri Sep 14, 2012
Wanda Jo Plott answered:
If you're looking to purchase a Short Sale I recommend working with a qualified Real Estate Broker with Short Sale Designations and experience. A Short Sale can take 60 - 180 days, sometimes longer depending on the Lender. It's crucial to know your contract is the only contract offered to the bank allowing you the opportunity to negoiate, if necessary. Many Short Sales will not allow for goverment financing due to their condition. They may also need repairs the Seller is unable to complete. If working with the right Broker and you have the time to wait through the banks process you could be purchasing a wonderful home........ ... more
0 votes 6 answers Share Flag
Tue May 8, 2012
Brian Beatty answered:
First of all, let me explain the meaning of a Short Sale. Many have the misconception that a Short Sale has something to do with time, as in “the sale is going to take a short amount of time.” Unfortunately, the opposite is true. A Short Sale is an attempt to negotiate a short payoff on a debt (in this case the Seller’s mortgage). In other words, the Seller is trying to sell their home for less than the amount of their mortgage. As a Buyer, this provides you with an excellent opportunity to purchase a home BELOW MARKET VALUE since the Seller is in a distressed situation.

BELOW MARKET VALUE are the key words to this equation. Because the Seller is selling their home for less than the amount of their mortgage they have to contact their Lender and provide them with a full explanation of their financial and personal situation so their Lender can determine whether or not they are going to allow a Short Sale to occur. Since this process is going to take anywhere from 3-6 months there MUST be an incentive for waiting that long, right? The incentive is the ability to purchase a home for BELOW MARKET VALUE.

Now, the good news is Buyers successfully purchase Short Sales every day. The bad news is, unfortunately, there are A LOT of steps involved in the process and it can be very frustrating. Many Buyers and Agents are so fed up toward the end of the deal that they forego further negotiations because they just want the deal to be finished and they want to “buy a house.” Up until a few months ago I would not have been able to say this but my wife and I are a perfect example of a frustrated Buyer that purchased a Short Sale. Here is the story:

My goal is to make sure you know ALL of your options, help you understand why Lenders do what they do as it relates to their decisions throughout the Short Sale process and, ultimately, keep you focused on getting a GREAT deal on a home.

As you can probably guess, there are several pitfalls throughout the Short Sale process that can have a negative impact on the purchase of your home AND on the experience of purchasing your home. Most Real Estate Agents don’t have the experience to help guide you through the process of purchasing a Short Sale because they’ve either steered clear of them entirely because they involve “work” or they have only sold a few and were helped by an Attorney. Now, there are Real Estate Agents out there that have sold hundreds of homes and have been in the business for decades but that does not mean they have EXPERIENCE when it relates to purchasing a Short Sale. I am a Short Sale Expert because I am one of the Top Sales Agents in Charleston for the purchase of Short Sales and my Team and I have sold into the hundreds of these.

If you’re interested in learning more about the Short Sale process please contact me through my website www.ListingsinCharleston.com or simply call me at (843) 345-1273.
... more
0 votes 8 answers Share Flag
Tue Aug 1, 2017
Keisha Mathews answered:
Once the lender has formally filed a Notice of Default, Ca State law allows foreclosure after 90 days.

You can view the foreclosure timetable at my website below for specific details.

Keisha Mathews, REALTOR
CDPE, HAFA, HRC Certified
Century 21 Landmark Network
Lic# 01439130
... more
0 votes 12 answers Share Flag
Fri Mar 30, 2012
Nadine Mauro answered:
Hi,

My questions to you would be:

Do you want single family houses or condos?
Will you be paying cash or getting a mortgage?

Buy in good neighborhoods with good schools where you're likely to get good future appreciation.

Good luck with your investments.
Don't buy in age restricted communites.
... more
0 votes 21 answers Share Flag
Thu Mar 22, 2012
Alain Picard answered:
Has the current owner accepted your offer and it has been submitted to the bank for approval? If so you can still be in for a really long wait. It will just depend on the bank.
0 votes 11 answers Share Flag
Fri Apr 29, 2016
Doc & Ellen Stephens answered:
Hi, Jack,

It is not REQUIRED, but the law presumes that the agent represents the Seller unless you have a written agreement with the agent to represent your interests. Here's why you might want to do that: http://www.trulia.com/blog/ellen_doc_stephens_realtors/2010/03/why_do_i_need_a_buyer_s_agent

When an agent represents you, he or she must place your interests first, even before his or her own. Your agent's job is not to SELL you a house, but to help you find exactly what you want,and then, negotiate the best possible price and terms, and manage all the nettlesome details that lead to a smooth closing.

Happily for you, the Seller's agent pays your agent for bringing a Buyer. Some agents think that they can represent both the Buyer and Seller - that's impossible. You have to stand with either the Earps or the Clantons at the OK Corral - you can't take both sides in a gun fight or a negotiation. The same agent can manage the transaction with both Buyer and Seller, but if they have a listing agreement with the seller, the Seller is the one who is represented and the Buyer is merely a Customer, not a client, and has no fiduciary protection.

So, if you are Buying a home, you might consider the benefits of having a pro on your side of this major financial transaction. It doesn't cost you anything extra and might save you thousands and prevent costly problems. We do this every day.

Good luck,

Doc Stephens, REALTOR
Keller Williams Realty
... more
0 votes 15 answers Share Flag
Thu Jul 21, 2016
Bob Willett answered:
This may not sit too well with some agents, but I don't recomend signing such a document. You will owe a commission to that broker even if you buy with another agent. It may be different in your market, so I would ask around to be sure, but here it is not common for the best agents to use them here in my market. ... more
0 votes 59 answers Share Flag
Tue Dec 17, 2013
Dave Melka answered:
Hi Letisha
It's always a good thing to have a Realtor working on your side. We don't charge the buyer any fees to help find a home, walk you through submitting an offer, home inspections and going to settlement with you! It's supposed to be a fun time and very educational experience. Home buyers seminars are great and a good lender will work with a first time home buyer with their credit and getting pre approved for a home loan. Let me know if i can help!
Thanks
Dave Melka
Real Estate Professionals, Inc.
Always Free Homes For Sale Emailed Daily at www.baltimorelowpricedhomes.com
... more
0 votes 15 answers Share Flag
Tue Mar 8, 2016
. answered:
As a Miami native my only advice to you would be to wait and see. The market in Miami is not good right now, developers are stuck with their buildings and foreclosures are extremely high. I would wait and see where the market is heading before making an investment for a good ROI. There are plenty of other areas in the US that have better ROI options.

Hope this helps and good luck!
... more
0 votes 35 answers Share Flag
Wed Feb 27, 2013
Oggi Kashi answered:
Your agent is correct. The banks and their short sale process of approving the sale price can take quite a long time. The buyer and seller need to jump through many hoops to get to the finish line.

If you are in contract on a SS, keep looking while you are waiting and keep in mind that sometimes the property is foreclosed on prior to the completion of the short sale.

If you are asking about rates, does that mean you have not consulted any lenders yet? You should start the pre-approval process immediately.

Best of luck,

Oggi Kashi
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
... more
0 votes 6 answers Share Flag
Sat Jan 21, 2012
Ruth and Perry Mistry answered:
Hi Violet:

Happens all the time, check the posts on this site.

It is common practice since 2007, either you pay up or walk away after
all this waiting. Bank/s involved did several appraisal and felt that your offer
is low and thy are better off doing without your offer or foreclosing and re listing, and
later selling at market value.

Trust you were advised by your agent, there is a terrific short sale addendum
that I can email you, get in touch.

Good luck and have a great weekend.
Ruth and Perry
... more
0 votes 8 answers Share Flag
Sun Jul 22, 2012
Lance King answered:
Lorie,

There is no rule of thumb on this. Different asset managers take different approaches to pricing, and it often is not rational. Your best best is to have an agent/broker who is very familiar with this type of property because there are a lot of things that are different in terms of disclosures and process.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
... more
0 votes 16 answers Share Flag
Tue Feb 7, 2012
answered:
Do you need the spouses income to qualify?
A 'trailing spouse' can be a good compensating factor if the debt ratios are on the high side.... But we cannot use income that just isn't there for qualifying.

I would like to learn more about the new job and the previous experience. Is this in the same line of work? Just a new job title? Is this a salaried position?
Please elaborate.


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
... more
0 votes 10 answers Share Flag
Sat Jan 14, 2012
Emily Knell answered:
3 Island Vista is still coming up as an Active listing. Please let me know if you'd like me to get some more details.

Shoot me an email directly if you want to talk about this some more, I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
... more
0 votes 9 answers Share Flag
Mon Sep 9, 2013
Christopher Pagli answered:
Hi, Unfortunately it is not normal and you are at the mercy of the bank. there is a process that is involved, especially if there is a second lien holder that needs to be contacted. you can only hope the seller has properly filled out there package and the sellers bank is on top of the file. Many shortsales don't close because of the the length of time they take to approve them.

Chris
... more
0 votes 14 answers Share Flag
Sat Dec 31, 2011
Patrick Fields answered:
Hello Robert,

There are many ways to answer and advise on your question. In many ways, choosing a buyer's agent can be much like you would choose to hire an employee for a small business.

You want to know that the agent understands the market/area where you are buying. This will save you time, and better ensure that you receive reliable opinion and advice.

Interview the agent. Find out about the types of deals he/she has completed, how problems have been resolved, how quickly you can expect responses to your questions and what specific level of service you will be provided.

Ask around. Find out who has handled deals for friends, family and co-workers. And finally, trust your gut. If you meet an agent and after talking, you don't feel a sense of comfort and trust, continue looking.

Remember that you can always terminate an agreement with your buyer's representative if you are dissatisfied. You hold the cards and can always correct a selection mistake.
... more
0 votes 25 answers Share Flag
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