Waiting for a short sale approval. How long is too long?

Joe Pusheck, "Go with Joe"
- 5.0/5.0
- (2 reviews)
Contributions:20

After you have gone through all the hard work of searching for the right home, you and your client have placed an offer on a nice short sale listing. But now you have to wait for the bank approval. How long do you wait... a month? 60 days? 6 months or more? It depends. How long is your client willing to wait. But as an agent you need to be realistic with your clients. After 10 days if you have made multiple attempts to get your offer approved and there is no response, then it is likely best to keep looking.

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February 01 - US

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Replies (4)

Nicholas Ribeiro, "NicholasRibeiro"
- 5.0/5.0
- (19 reviews)
Contributions:1807

The shortest short sale I ever did was 36 days, the longest one was over a year. All depends on the bank!

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February 01

Jerry Moscowitz, "Jerry Moscowitz"
- 5.0/5.0
- (25 reviews)
Contributions:39

Too many variables in my opinion to give a definitive answer. It depends on the buyers situation to begin with. Do they love the home and are in a position where they can wait even if it takes several months or do they have a lease and need to be out in 4 months? All of it comes into play. From the listing agent I would like to get some updates, especially after a couple of weeks to let me know that he is doing what he can. I usually write addendums saying we need bank approval within 90 days but if there is positive feedback from the bank we often continue on after the 90 days.

In the end you properly prepare the buyer for what is involved with buying a short sale and leave some opening for them to get out after 90 days if they want and they really shouldn't look at short sales in my opinion if they are not in a position to wait up to 90 days.