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Answers (9)
- Tim Rohan, "Tim Rohan"
- Contributions:2
As many have stated previously there is no standard timeframe. As a genral rule if a complete package is submitted to the lender they will usaully 1st order either an appraisal or a BPO (Broker Price Opinion) from an agent. Once that is recieved and the numbers are relatively close they will assign it to a negotiator. The negotiator reviews the file and presents the information to the investor (person that actually owns the note) and they resond. If all information is provided accurately up front 60-90 days is a reasonable time frame.
In terms of getting the best deal...I have found that it's not the 1st buyer that benefits from the short sale...but usually the 2nd. The 1st buyer gets frustrated with lack of communication from the bank and never knowing when it will be approved, if at all, and they back out. A good agent will let the approval process continue while looking for the next buyer. Once a figure is approved it can close within a few weeks.
In terms of getting the best deal...I have found that it's not the 1st buyer that benefits from the short sale...but usually the 2nd. The 1st buyer gets frustrated with lack of communication from the bank and never knowing when it will be approved, if at all, and they back out. A good agent will let the approval process continue while looking for the next buyer. Once a figure is approved it can close within a few weeks.
- Larry Tollen, "Larry Tollen"
- Contributions:384
It varies from State to State. Here in North Carolina the average time to get a response from the bank either accepting or rejecting the offer is 143 days. If you're told yes then you're expected to close within 406 weeks.
My advice as someone certifed as a short sale specialist? Don't easte your time on a short sale, 80plus % of these properties will end up in foreclosure anyway and you can buy them much easier then.
- John Stewart, "nwhome.us"
- Contributions:2166
The process is easier than it was 2 years ago. The lenders have established systems and protocol for dealing with the issue. Systems include online document submission, secure email communication and early assignment to a processessor, etc. Even with these in place, there is no predictability. The point is that if you want a Short Sale property you HAVE to WANT to deal with unpredictablity and you have to WANT the property.
- stevenmtorres
- Contributions:46
In my experience, it has been very hard to tell. I have had short sales close on less then 60 days. I have had others take over 7 months. It really does depend on a couple of factors. 1) has the listing agent submitted the hardship letter and needed documentation to the lender(s). 2) How many lenders are you dealing with? Is there a first and/or 2nd lender? Finally if the lender is a big commercial bank? It may take a long time for a decision. In my experience the smaller lenders close faster, while the bigger fish take all year to make a decision.
- Birgit Anglin, "isellhomes2people"
- Contributions:2
TS... The answer is property specific. Even then what you are told may not be the case.Good luck!
- Jaryd Ruffner, "JarydRuffner"
- Contributions:98
Average turn time will depend on seller cooperation, knowledge and skill of negotiating party, who the lender is, how many lienholders, seller's hardship, etc. Best bet would be to have the 1st position lender give you a quote of their avg turn time during the beginning stages. I'ce completed short sales in as quick as 11 days and have had some go over a year and never close. They are all circumstancial.
- tsizemore
- Contributions:4
Thanks for the feedback! I know there is no written 'average' of a short sale and that no two are the same. I was more asking what you as agents have experienced lately. Are you seeing them take 1 month or are you seeing them taking 18 months. It seems by a lot of the postings that short sales are seeming to be 'easier' now in terms with the banks than they were two years ago. just looking for a ballpark average...as I am just curious and interested in a short sale property.
- Birgit Anglin, "isellhomes2people"
- Contributions:2
Hi Tsizemore... There is not an average turn around time for short sales. There are many factors involved in the entire process. Depends on the lender, if there is a 1st and 2nd, and are they with the same financial institution. Also, how much experience do the agents have that are involved. Also, depends on the buyer, and thier committment to stick with the entire process. It does on more than one occassion take more than one buyer to get to closing. You can also go to consumer alerts on our CA department of real estate web site to read further on the short sale process. There are some excellent articles that may help you understand the complicated short sale process. You can contact me direct if you have any questions. Have a great day! I tried to post the web site for ease... however Zillow would not allow this. Sorry.
- John Stewart, "nwhome.us"
- Contributions:2166
What lender are you working with?
I'm not sure there is an average time.
The consistant theme is:
1. it is unpredictable
2. 1 in 4 sales fail
3. to be 1 of the 4, you need to be more motivated than getting "the best deal." Your mother or your best friend lives next door are a couple of good reasons.
I'm not sure there is an average time.
The consistant theme is:
1. it is unpredictable
2. 1 in 4 sales fail
3. to be 1 of the 4, you need to be more motivated than getting "the best deal." Your mother or your best friend lives next door are a couple of good reasons.
What is the average turn-around-time, from offer to closing, for short-sale properties today?
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