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How long does the final review of a short sale offer take?

My boyfriend and I put in an offer for a short sale on July 30 2012. It took 4 months for the bank to even respond to our offer. First they countered at asking price, we countered back at 10,000 more than our original offer plus stating we would pay closing cost. Took another two weeks to hear a response and they countered asking us to go up another $10,000, we countered in the middle and went up another $5,000. It took them about a month to respond with news that all the paperwork and the apraisal had expired. So they rescheduled another appraisal and three weeks later we get news that they are finally reviewing our offer and all paperwork has been submitted and they have all the information they need. I am just wondering if we are close to the light at the end of the tunnel?
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February 14 2013 - Olney
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Hi There, it sure does sound like you're close. Depending on the bank, the seller will often get a short agreement (almost like a two page letter) that explains the terms of the approval first. Then, 7-10 business days later you'll get the official approval.

If I had to guess, you're inside 2 (maybe 3) weeks of getting the green light.

Best of luck to you guys!
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February 14 2013
July? You have a lot of patients waiting that long. Hope you got a deal of a deal. Sounds like you are close, not days but close.
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February 14 2013
It is a very good sign with all the movement back and forth, I would guess you are within 30 days of being finished. I just hope with the market heating up your new appraisal value doesn't add issues. Not trying to jinx you!

I am sure you didn't have patients, but patience you had in spades.

Best wishes, Jim
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February 14 2013
Sounds like you are on the right track. We generally close our Short Sales within 90 days only because we have a separate Short Sale Negotiator in our Group. I think this would have helped in your situation. It does sound like you are close. I would have your agent keep track to make sure this property is also not close to foreclosure. I can't tell you how many times I offer a property for sale at the courthouse steps (I am also a foreclosure auctioneer for a large firm in Towson) and watch the agent just stare at me...telling me..."but we have a contract!"....just make sure.
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February 14 2013
There are a lot of variables on this one.  Number 1 would be the timeline for the whole negotiation process and when was the short sale package completed and submitted with your offer to the bank.  Typically (with a good negotiator/realtor) it takes approximately 30 days to get a counteroffer and response from the bank.  That is assuming that the "COMPLETE" short sale package was submitted CORRECTLY to the bank which would also include your offer.  Another variable is with the bank.  Not all banks are equal, there are some (two in particular) that take a long time.  If you have any more questions please feel free to contact me.  Good Luck
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February 14 2013
If the offer falls within the range the bank is looking for, it will most likely have to be approved by the bank u/w or investor before they will give a final approval.  These processes can take a week or two under normal circumstances.  
 
If it doesn't you could be facing another counter which will extend your waiting period.  You should note that banks usually will not accept less than fair market value for their properties.  Condition is taking into consideration.

You may want to have you agent provide you comparables to assure your offer is in the ballpark.  If the market increases and a new appraisal is ordered prior to the final approval, their price will likely increase.

Best Wishes

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February 14 2013
Most of the short sale process can take from 2 to 9 months.  It really depend on how fast the seller provide all his paperwork and how efficient the negotiator of the bank or financial institution that holds the property's mortgage can approved the short sale.  It look like your transaction is almost over.  Just be patient.
Best of Luck,

Maria Cipollone
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February 15 2013
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I am in the same situation. We made an offer August 8th and have been told at least twice a week for the last few weeks that we are very close. I would be interested to know which bank your short sale is through. I hope things go well for you and you can get your home soon.
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February 28 2013
You never can tell with a short sale how long the process will be.
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March 21 2013
thanks Miekeba, for adding such insight and depth to an old thread. Brilliant.
Jim
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March 22 2013
The word forever comes to mind...
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August 02 2013
That you got an initial response to your short sale offer within the first four months may count as a major miracle.

I've worked with short sales that have taken more than 18 months. However, I've also worked on short sales that were completed within 60 days, start to finish.

Much depends upon the bank and the rapidity of the seller's return of the required paperwork. Also, the willingness of the original investor to go along with your deal is an overriding factor.

Based on what you've related, you could be two - four weeks from closing.  On the other hand, you could be sitting for a few more months.

Agents I know of have worked with what was termed "an approved short sale." That means the bank  had allegedly approved the price based on a previous deal that had fallen through.

The customer willingly submitted their bid at this new, higher, but "approved price,"  Six months later, the bank had not yet responded.

So the answer to your question about short sale completion is that you never really know how close you are until you get the call from the bank saying you're approved. Short sales have a 66% failure rate. But if you're patient, which it appears you have been, you may get the home.

By the way, before you get disgusted and walk away, think about this question:  is the price the bank is asking reasonable, based on the market price of a similar home?

If the answer is yes, wait for the house. After all, you're probably passed up half a dozen worthwhile homes during the wait. If the answer is no, then get out while you can and buy a home before prices go up again.
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August 02 2013
It really depends on the bank you deal with, whether there is a first and/or second loan and how back logged they are. Short sales are definitely worth waiting for. If your client submitted an offer 4 months ago, the home is worth about 5-10% more today.
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August 02 2013
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Our daughter filed bankruptcy on a home we cosigned for her, she stayed in the home and continued to pay the mtg for a good 5 years after she filed, she can no longer do the payment, what is our reprocussions with chase on a short sale, and does our daughter need to file for a short sale since her name is on the deed or how does this work?

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August 23 2013
User34563050,
This is a serious question and the answer might border on legal advice, so it should come from an attorney in your state. Perhaps your daughter's attorney when she declared BK.
Since you co-signed, you might wish to contact your own attorney for advice.
Best wishes, Jim
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August 24 2013
 
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