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Answers (12)
- Gary May, "RealtorTampaBay"
- Contributions:56
If you receive a approval letter inside of 90 days be grateful. The short sale proces can be very, very frustrating. It's important to make sure all required documents have been received by the sellers lender in a timely manner and that you're receiving weekly updates from your realtor (from listing realtor). It's fairly normal that it'll take around 90 days before you receive the approval letter from the sellers lender or at least significant feedback as to what the lender needs to finalize approval. But you should receive updated information with regard to BPO completion much sooner. Hopefully the seller is fully cooperating/communiting in a timely fashion with their lender.
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
This can take a while and can get frustrating. Make sure the listing agent is a short sale specialist and make sure your getting daily / weekly updates.
- Adam B. Manville, "CapstoneBroker"
- Contributions:53
Scheduled contact with the listing agent to track progress is helpful. The lenders will work on their own timeframes but it's important to be sure that the listing agent (or their short sale processor) is on top of things and that the lender has everything they need in the file.
- Seth Captain, "CaptainSeth"
- Contributions:142
Pick a religion. Believe in it. Or a self-help book. Or an amulet blessed by an Amazonian shaman.
There is no logic with a short sale, only best case scenarios based on a particular file with a particular lender and a particular processor at a particular point in history.
Have you found your potion yet?
There is no logic with a short sale, only best case scenarios based on a particular file with a particular lender and a particular processor at a particular point in history.
Have you found your potion yet?
- Rob Stewart, "Rob Stewart LC"
- Contributions:168
Best way to get it done quick: Hire a short sale processor. We have seen files that have been sitting for 6 months with no activity, and we called a VP contact we have at the bank, and he got it done for us.
Another idea would be to ask the sellers agent if you can get on a conference call to the seller's lender to see if they are waiting on anything. They may only be missing an addendum you didn't even know they needed from you.
If the seller is OK with it, i would be happy to take a courtesy look at it for you.
Another idea would be to ask the sellers agent if you can get on a conference call to the seller's lender to see if they are waiting on anything. They may only be missing an addendum you didn't even know they needed from you.
If the seller is OK with it, i would be happy to take a courtesy look at it for you.
- Shannon Rose
- Contributions:66
Unfortunately you are limited in to what you can do to accelerate the short sale process. Since the listing agent is either who is working with the negotiator at the bank, or they have hired out a negotiator to negotiate your offer with the bank you are relying on them to follow up and provide all requested documents to the bank.
Your agent can however follow up with the listing agent often to gain updates on the status, and ask the listing agent what time frame the short sale lender has provided them for approval. Typically banks have an estimate of how many days after receiving the offer until the file is assigned a negotiator, when an appraisal is ordered, or a desktop appraisal, how long for financials to be reviewed, and for investor approval. This will at least give you a basic timeline you can follow along with, although most likely there will be delays.
I would discuss your concerns with your agent, and ask if you can continue to see regular and bank owned properties in the interim.
Your agent can however follow up with the listing agent often to gain updates on the status, and ask the listing agent what time frame the short sale lender has provided them for approval. Typically banks have an estimate of how many days after receiving the offer until the file is assigned a negotiator, when an appraisal is ordered, or a desktop appraisal, how long for financials to be reviewed, and for investor approval. This will at least give you a basic timeline you can follow along with, although most likely there will be delays.
I would discuss your concerns with your agent, and ask if you can continue to see regular and bank owned properties in the interim.
- Matthew Dorsey, "Matt Dorsey"
- Contributions:30
Unfortunately there is pretty much nothing to do to speed up the process. Just hope you have a negotiator that is on top of things and gets everything that the investor needs to review.
There is nothing you can really do. Case in point: I have been in contract on a particular short sale for a year. The second loan is quite obtuse, and refuses to really negotiate. This despite it buying a purchase money second, with no recourse in Arizona. They keep insisting that the owner must sign a deficiency, which is simply never going to happen.
It looks like the home will go to auction, possibly in the next week, and I'll try to buy it there. Wish me luck, maybe I get it much cheaper than my original contract price!
It looks like the home will go to auction, possibly in the next week, and I'll try to buy it there. Wish me luck, maybe I get it much cheaper than my original contract price!
- Lumi Ispas, "Lumi Ispas"
- Contributions:203
I wish there was a way to "expedite" short sales.
When writing an offer on a short sale property you have to be prepared to wait. Short sales, sale for about 15% lower price than traditional sales. You, the buyer, get that 15% discount because you are willing to take the time to wait and take the risk of the short sale not going through.
Last year the number of short sales closings went up significantly and your chance of closing on this home is high. The waiting time between offer and acceptance or counter offer from the bank varies greatly depending on how many banks are involved and which banks. In your case is Morgan Stanley, however is it one or two loans with them?
I know is frustrating to wait, however that is all you can do. The listing agent, buyer agent, seller and the person negotiating the offer all want the home closed as much as you do. All of you have the same goal, so make sure you work together and not against each other.
Good luck to you!
When writing an offer on a short sale property you have to be prepared to wait. Short sales, sale for about 15% lower price than traditional sales. You, the buyer, get that 15% discount because you are willing to take the time to wait and take the risk of the short sale not going through.
Last year the number of short sales closings went up significantly and your chance of closing on this home is high. The waiting time between offer and acceptance or counter offer from the bank varies greatly depending on how many banks are involved and which banks. In your case is Morgan Stanley, however is it one or two loans with them?
I know is frustrating to wait, however that is all you can do. The listing agent, buyer agent, seller and the person negotiating the offer all want the home closed as much as you do. All of you have the same goal, so make sure you work together and not against each other.
Good luck to you!
- Wes Black
- Contributions:509
Your agent must continue the pressure on the listing agent.
- John Stevens, "Brokerstevens"
- Contributions:31
The sellers attorney is usually the key person here. He or she is the person who will have contact with the lein holder. Keep after your agent to keep pressure on the sellers agent to get updates from the attorney.
- Barbie Oehlschlager, "Barbie Oehlschlager"
- Contributions:37
As a consumer there's a limited number of things you can do. It's unlikely that Stanley Morgan or any other lien holder will disclose information to you directly. However, if you ask the right questions and create a sense of urgency with your agent you should be able to get more information about what to expect. Most agents are pretty motivated to keep clients happy but might turn attention to other activities if it seems like you're laid back and willing to wait for the process to unfold.
The bank will ask to see a preliminary HUD-1 settlement statement to get specific numbers on their net proceeds after closing costs. Ask if this has been generated by the title company yet.
The bank will have an independent party complete a Broker Price Opinion (BPO) and/or an appraisal. If the file is getting attention from the right people one month is more than enough time for this to happen. What is the price of the BPO? When is it due if not complete yet? Has it been ordered?
The bank will assign an employee to handle the the short sale transaction. Ask when Stanley Morgan assigned someone to the file. You might not be able to contact the bank employee directly, but knowing someone is working on it is always beneficial. If this hasn't happened yet that means there might be a problem with the short sale package. The short sale package refers to the bundle of documents the seller is required to provide to the lender in order to get the short sale process started.
Usually large banks have a relatively defined process for short sales. You should be able to get a rough estimate of a response date. The response might be an approval or a counteroffer depending on Stanley Morgan's opinion of fair market value in the area.
I hope this has been helpful!
The bank will ask to see a preliminary HUD-1 settlement statement to get specific numbers on their net proceeds after closing costs. Ask if this has been generated by the title company yet.
The bank will have an independent party complete a Broker Price Opinion (BPO) and/or an appraisal. If the file is getting attention from the right people one month is more than enough time for this to happen. What is the price of the BPO? When is it due if not complete yet? Has it been ordered?
The bank will assign an employee to handle the the short sale transaction. Ask when Stanley Morgan assigned someone to the file. You might not be able to contact the bank employee directly, but knowing someone is working on it is always beneficial. If this hasn't happened yet that means there might be a problem with the short sale package. The short sale package refers to the bundle of documents the seller is required to provide to the lender in order to get the short sale process started.
Usually large banks have a relatively defined process for short sales. You should be able to get a rough estimate of a response date. The response might be an approval or a counteroffer depending on Stanley Morgan's opinion of fair market value in the area.
I hope this has been helpful!
How to expedite Short Sale process
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