Home Buying in Orlando>Question Details

Donna, Home Buyer in Orlando, FL

Does anyone know about how long a short sale takes after making an offer on the home?

Asked by Donna, Orlando, FL Tue Jun 24, 2008

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16
Hi Donna -- You know what? I'm pretty sure nobody knows definitively the answer to this. It certainly depends upon the lender you are dealing with and how far along the seller is in the process. In my experience, lenders do not seem amenable to accepting a short sale unless the foreclosure notification is imminent (in most cases, this means that the owner must be behind in 4-6 payments on their mortgage). After being behind 4-6 payments, the "intent to foreclose" letter goes out because the lender is pretty sure that the owner is not going to bring the payments up-to-date and, therefore, is willing to entertain offers.

But that is just the beginning. At this point, the owner of the property must essentially bare their soul by giving the lender ALL of their financial information (past tax records, proof of all bank accounts, assets, income, etc), plus must write a letter describing why they got into such difficult straits with their finances. If the lender continues to be convinced that there will be no more mortgage payments forthcoming and the seller can't make an arrangement to save their home, they will look at offers and send out their own appraiser (or real estate agent) to tell them the realistic market value of the property.

If, after all of this time/waiting on your part, your offer is within the "ballpark" of the lender's appraisal, they will counter back to you or accept your offer -- i.e., they will agree to take a loss on the Seller's mortgage, and sell the property to you.

I have found that to be successful, it is necessary that you have an agent who is experienced in this process. Since no two lenders operate exactly alike, and since most lenders won't explain their particular process, it makes sense to have someone represent you that has been through it successfully and knows where the pitfalls may be and try to avoid them before someone else edges you out. While being the "winner" of a short sale is a long involved process, and not one for a buyer who needs to be in a home within a certain timeframe, there are terrific values to be had. By the way, if the property is already "bank owned" (the foreclosure has already been accomplished and the bank has taken the home back), the whole process is much much quicker--maybe taking only a week or two at best.

Hope this helps. If I can be of any help to you, please don't hesitate to call me. Best of luck.

Happy House Hunting!

Louise Warring
Coldwell Banker
407-924-9399
1 vote Thank Flag Link Tue Jun 24, 2008
It depends on which stage the seller is at. Could take from 4 to 12 weeks and the willingness of the bank to cooperate in the transaction.
Good Luck
Yvette :)
1 vote Thank Flag Link Tue Jun 24, 2008
In my experience with short sales they have taken anywhere from 2 weeks to 4 months. All lenders as well as all short sales are different. Some lenders have told me that it can take up to 6 months. Some lenders allow the seller to send in their short sale package before they list the home and some do not want a package until after an offer is received. It really depends on if they were already approved for the short sale and as I stated before who the lender is.
1 vote Thank Flag Link Tue Jun 24, 2008
All the answers are correct, it can take from 30 days to 90 days or longer. Currently the "Loss Mitigation" Department of the banks is quite busy. I have a loss mitiagator in my office who formerly was employed with a major bank and is now in my officeand she is also a lisenced real estate agent. Even with her success rate, it depends also on the mortage lender - Important questions: How many mortgages? Who is each mortgage holder?

There are many of us that are working hard with several buyers and sellers that are currently under contract. It takes a lot a patience and an ability to ride the wave. There are a lot of ups and downs, but when we finally close, it is all worth the endurance test! LL Wood
Web Reference: http://www.LLSellsHomes.com
0 votes Thank Flag Link Mon Jul 28, 2008
It depends...could be 6-8 weeks. Although a recent short sale a partner of mine was working on..the bank explained it would take 2-4 weeks! That really surprised us....
0 votes Thank Flag Link Sun Jul 27, 2008
I have one 2006 3/2 SF if you offer 155k, the lender will answer "yes" yesterday. Sometimes you need to wait.
Web Reference: http://www.Orlando-Relo.com
0 votes Thank Flag Link Tue Jul 22, 2008
Our BUYERS AGENT found us our "new" home, built 11/2005 as the Model Home, 3/2 with stainless appliances, tiled/screened 14X10 back porch w/walk -on roof that was for sale at $270,000, (for 1 year), then on Short Sale for $205,000 for ten months, and we offered $185,000, on Dec. 3th 2007, They responded on Dec.8 with a firm NO, so we resubmitted our offer of $195,000 and the California bank responded with YES only 9 days later. One item we wanted was to close before Jan 1, 2008. Another was a warranty ($395).

We got it ALL. Backyard abuts a half acre chain linked Nature Reserve established so that the noise of a great local park would not intrude. Stocked lake of about 12 Acres, 2 playgrounds, 2 Racket ball courts, 2 tennis courts, and 6 basketball courts... free admission! NO HOA!!! In Downtown Oviedo, 5 miles from UCF, blocks from three major highways (419 two blocks, 434 is four blocks, 426 two blocks) and one toll road (417/408).

There are exceptions to every 'rule', and low balling frantic bankers can make a buyer's day!
They might say NO, but, you simply offer a bit more to entice them!
We closed on Dec. 28th, 2008! Play some HARD BALL with these banking suckers, as they have gyped us plenty in the fat times!

One other thing in Florida is Hurricane straps, 12AWG electrical wiring, reinforced Garage Doors, are MANDATORY on all NEW homes since 2005!

There are plenty of homes here on short sale or foreclosure, built since the new codes!
0 votes Thank Flag Link Thu Jul 10, 2008
Our BUYERS AGENT found us our "new" home, built 11/2005 as the Model Home, 3/2 with stainless appliances, tiled/screened 14X10 back porch w/walk -on roof that was for sale at $270,000, (for 1 year), then on Short Sale for $205,000 for ten months, and we offered $185,000, on Dec. 3th 2007, They responded on Dec.8 with a firm NO, so we resubmitted our offer of $195,000 and the California bank responded with YES only 9 days later. One item we wanted was to close before Jan 1, 2008. Another was a warranty ($395).

We got it ALL. Backyard abuts a half acre chain linked Nature Reserve established so that the noise of a great local park would not intrude. Stocked lake of about 12 Acres, 2 playgrounds, 2 Racket ball courts, 2 tennis courts, and 6 basketball courts... free admission! NO HOA!!! In Downtown Oviedo, 5 miles from UCF, blocks from three major highways (419 two blocks, 434 is four blocks, 426 two blocks) and one toll road (417/408).

There are exceptions to every 'rule', and low balling frantic bankers can make a buyer's day!
They might say NO, but, you simply offer a bit more to entice them!
We closed on Dec. 28th, 2008! Play some HARD BALL with these banking suckers, as they have gyped us plenty in the fat times!

One other thing in Florida is Hurricane straps, 12AWG electrical wiring, reinforced Garage Doors, are MANDATORY on all NEW homes since 2005!

There are plenty of homes here on short sale or foreclosure, built since the new codes!
0 votes Thank Flag Link Thu Jul 10, 2008
A "short-sale", known as such due to the property being sold short of the payoff owed to the Owner's lender, can take, upto months. MOST short-sale offers take a minimum of 2-3 months to receive a reply from the Seller's lender, either denying or accepting the Buyer's offer - usually with certain terms (i.e. must close within 30 days).
0 votes Thank Flag Link Wed Jul 9, 2008
As a closing agent who specializes in short sales and REO properties I have seen closings happen in as little as 3 days (cash buyer) all the way upto 5 months. I just closed one last week that I had the contract on it since the end of January. It really depends on the lenders, asset managers and the the agent you are working with on how soon it can close.

We train real estate agents on how to prepare short sale listings, offers and how to deal with the banks and asset managers to get their closings fast tracked. We have a lot of experience in dealing with lenders to get short sale properties closed.

My best advice is to make sure you are working with a Realtor who has EXPERIENCE with short sales and can work on your behalf with the lender to speed along the closing. It also helps if the Realtor is working with a title company experienced in short sales who can prepare preliminary HUDs correctly in a way that the lender can accept the offer.
Web Reference: http://www.mercurytitle.net
0 votes Thank Flag Link Mon Jun 30, 2008
Donna,
That's a great question. I wish I could tell you for sure. But Short sales can be a bit complicated. Basically you are waiting on the bank ( the 3rd party approval entity). The person at the bank or lending institution is reviewing offers for many properties and this can take a while. So patience is key on a Short sale. Hope this helps.
Rick.
0 votes Thank Flag Link Wed Jun 25, 2008
Anywhere from 2 days to two months, I know it does not make sense, but that is what I am seeing out there. The lenders are often not quick to give a reply.
0 votes Thank Flag Link Wed Jun 25, 2008
Donna,
The answers you have received may not be the information for which you were looking but is both consistant and accurate.....

If you are seeking a closing sooner then 6 months, we recommend electing the foreclosure or traditional route.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Tue Jun 24, 2008
Unfortuantely there is no easy answer. The one I am working on today is up to 5 1/2 months. All timeframes are at the mercy of the lenders involved.
0 votes Thank Flag Link Tue Jun 24, 2008
There are many variables; if all the terms and conditions of the short sale have already been submitted to usually both the first and second lien holders- it could be between 2-6 months pefore a buyer will be cleared to close. I understand that it could also be as soon as 2-6 weeks.

The current owner must submit the full short sale package prior o consideration as well as submitting an iron clad purchase offer.
0 votes Thank Flag Link Tue Jun 24, 2008
Short sales can take anywhere from 3 days to 6 months. It all depends on how far into the process the seller has gotten.

You will need to be more specific about the situation to really give you a better answer than that...

If I can be of any further assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'd be happy to help.

Thanks,

-Josh
0 votes Thank Flag Link Tue Jun 24, 2008
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