Profile picture for Optimus012

How much longer for a short sale approval

It's been about 2 weeks and the BPO is already in at the bank for the short sale I'm trying to buy. How much longer before I might hear a decision from the bank? It seems like it's moving along faster than I thought it would.

Also, I've read that banks might accept as low as 90% of the BPO price. Is this accurate or could they accept lower?
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July 05 2012 - US
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Answers (7)

Best Answer
Hi Tap012, hang loose with short sales, not two are alike.  You can only go as high as you are able to, if that is not enough then move on to the next one!
Good luck!
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July 06 2012
There is not set time on how long the lender can take on reviwing papers you sumbitted.
In regards of the bank there are plenty of factors that will be taken in consideration
Good Luck
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July 06 2012
Profile picture for Optimus012
My agent told me it could be as short as a month depending on how quickly the owner gets his papers to the bank. The bank is B of A and it's one loan. My concern is if they counter because I don't have much room to go up in price. Do banks almost always counter?
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July 05 2012
Hopefully your agent set the rigth expectations on buying a Short Sale Property, There is not set time on how long the lender might take on reviwing the package and as per the bank accepting at least 90% of the BPO Price is not a guarantee since that's for the bank's reference on Price there are many other factors that will be taking in consideration on how much the lender will accept 

My advice is to have patience and make sure to keep all the channels open with your agent during this proccess we do not control the time frame nor do we control or have a say on how much the Short Sale will be accepted for 

Thank You and good Lucj 
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July 05 2012
I have had them take as quickly as 3 months and as long as a year. I hope you have a lot of patience as these are a real rollercoaster ride.  I try to discourage my buyers (especially first time) because they are impatient and easily let down. There are so many great deals on homes right now it just doesnt seem worth the time and effort.

Best Wishes to you.
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July 05 2012
Profile picture for B Mike West

Before you started a short sale purchase attempt, I hope your agent told you that it was going to take a long time.  A lot depends on the lender or lenders.  If there is more than one loan you will have to dance to the tune or both of them before it is all over.  One loan will take you a few months in most cases, two loans much more.  More than two loans and you are asking for a miracle.

Once the BPO is done, the loan servicer (B of A, Wells Fargo, or whom ever) may have authority to make the decision and they may not.  Much depends on who actually owns the loan (your union pension fund, your insurance company...)  Don't count on the decision maker accepting 90% of the BPO value.  They usually stick to that number very closely.  If you don't meet it they will consider if they can make $ .10 more by foreclosing they will do so in a New Your minute.  Remember that they are agreeing to give away money that was legally owed to them and they do not do so easily.

Don't be surprised if you hear back that you have to up your offer to meet their number in order to get an approval.  Hunker down and play your cards as they are dealt.

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July 05 2012
All banks are different, there's generally no standard time frame for when a bank will make a decision. Short sales can take weeks to months to complete closing. The banks are in no rush to process your offer either. Therefore, you just have to have patience and time when buying a house from them.

There is no guarantee the bank will accept 90% of the price. In fact, I know of one house where 1 buyer put in an offer below the asking price and another buyer put an offer above the asking price, and the banks denied both offers! They only took the offer of the next buyer who put in the exact asking price of the short sale.

When you are dealing with the banks there is no rhyme or reason to anything they do. Don't spend your time trying to figure out their strategy. You just have to go with the flow and hope they end up in your favor.
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July 05 2012
 
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