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Short Sale-Closing

I saw a house that is a short sale. It just got listed. The RE broker told me they want to close in 60 days because some Obama plan is about to expire soon for the seller and they need to sell/close quick. Anyone know of such plan/info? I thought short sales can take 1-2 years to close?
  • August 21 2012 - New York
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Answers (6)

a short sale can get approved in 21 days
  • October 29 2012
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No, no , no.  Submit your offer.  It's possible you could close before the end of the year.  If you don't like how the deal proceeds you can back out anytime within the inspection period after the lender accepts your offer.
  • October 29 2012
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The Mortgage Debt Relief Act of 2007 was set to expire on Dec. 31,2012. But a Senate Committee deliberating the impact of this, just approved a  bipartisan bill  to extend the Debt Relief Act. It STILL must be voted on by the entire Senate and that is scheduled to happen next month.
IF voted by the Senate to be extended, it is proposed to be extended through 2013.
  • August 21 2012
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Short sales take about 60-90 days to close typically. And the program that the seller probably wants to recieve is the HAFA (Home affordable Foreclosure alternative). Sellers get incentives to relocate from their lenders. This program was developed to help avoid vacancies as well.

  • August 21 2012
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The Mortgage Debt Relief Act of 2007 is scheduled to expire at the end of Dec 2012.  This act relieved Sellers who have forgiven debt from owing taxes on the forgiven amount.  This is likely what the agent is referring to.

The Seller wants to close by the end of the year.  This has nothing to do with President Obama.  However, if President Obama is not re-elected the act will likely not be extended beyond 2012.

This does not affect the Buyer, monetarily, but may change the Sellers mind about selling.

Any way, if you can get the short sale closed in 60 days, good for you.  Most take longer.  As a Buyer, I would not let the MDRA worry me. I would worry more about getting the home under contract, getting your financing and getting it closed without any snags.
  • August 21 2012
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Profile picture for nwhome.us
What ever you do, don't use the listing agent if you are unfamiliar with buying real estate.
Any plan that the feds thought would help speed short sales up hasn't been in place and isn't going to expire.
The duration of the short sale process depends on the primary lien holder and if there are any secondary liens.  so far the shortest I've done is 6 weeks and the longest a year.  A 1-2 year average is not the case.
The standard contracts default to 60 days but many are taking 90-120 days.
Get your own agent who experience in short sales if that's one of the market segments that you want to pursue.  It isn't always the cheapest.
  • August 21 2012
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