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Answers (11)
- LaNita Cates, "remaxagent33"
- Contributions:289
It depends on so many factors, many in which you have no control over. For example, is the seller cooperating with the bank? They take 4-9 months and I've seen even longer.
- Marco Lopez, "RealtorMarcoLopez"
- Contributions:4
Point is, a short sale can take some time. The reality is, it all depends. There are a lot of factors involved to completing this process: Who's the bank? Does the borrower have a legitimate hardship? One lien holder, or two? Primary residence, or investment? Purchase money loan, or refinance? So on and so forth! It can be really frustrating. Nevertheless, a short sale can be a great buy under the right circumstances and with a little patience.
- Bob Brandt, "BobBrandtRealtor"
- Contributions:1019
Sometimes it can't be done no matter how long you wait.
I have had answers in 3 weeks to never hear back after 11 months.
I have had answers in 3 weeks to never hear back after 11 months.
- amyeliz88
- Contributions:2
The seller accepted our offer back in May and off it went to Bank of America for review. They've now had it 80 days and still no answer. The house has been on the market for over a year, we're the 3rd buyers attempting to buy this property because the last two dropped out after waiting 6 months and 3 months respectively. BofA is even using the BPO from the last buyers which I thought would cut down on the time it took to process our offer. BofA is the WORST bank to deal with on short sales. Get ready for a very, very long wait with almost NO communication.
- keefer13
- Contributions:1
Bank of America has been reviewing our short sale for 116 days...almost four months. They never respond our calls or emails. They are the absolute worst bank to deal with...PERIOD.
- soonah
- Contributions:81
Depends on the relationship with the bank and the owner of the property, it can sometimes take up to six months or longer, rarely in a day. Hopefully the relationship has peaked an agreeable modification on what the bank will accept. The problem is usually that the owner does not want to pick up the losses to the bank. Good Luck, this is going to take patience.
- jrtonyday
- Contributions:3
I have an FHA loan with bank of america and it has taken in excess of 3 months to get anywhere. The seller has now gave escrow a notice to cancel and we are persuing legal remedies to force the sale. FHA is a great solution for people with few other options. Just please, choose someone other than BoA to process your FHA.
- pat1940
- Contributions:1
bank of america has been reviewing a bid on a short sale home for about forty five days now. Origianally bank of america told the seller to accept our offer . what is taking so long? This is in washington,d.c.
- Chris & Stephanie Somers, "TheSomersTeam"
- Contributions:1187
Jphan999,
That is a great question ! It is one that every Buyer, Seller, and Realtor ask when dealing with Short Sales. The simple answer is:
" Your guess is as good as mine !"
The more appropriate answer is:
" It depends on the bank."
Not that either response is a good answer ! : (
Chris and I are self proclaimed Short Sale Specialists in Philadelphia. We do a lot of Short Sales. It is not that Philly has a sinking Real Estate Market. In fact just the opposit is true. We are simply Ready, Willing, and Able to do the work that is needed for a Short Sale. (Low commissions and lots of work are not popular in our industry.)
Yesterday I was on the phone with Bank of America. They have a 3 Phase process that can explain what goes on behind closed doors at most banks and explains why it can take a month or 6 months for a short sale to occur.
Phase 0 - The 100% complete Short Sale Package is submitted, digitally recorded and awaits assignment. This tskes 24hrs to 12 days as long as it was received by the right department.
Phase 1 - A negotiator is officially assigned to review the package, make sure all documents are there, order the BPO (BPO is like an appraisal). This Phase can take from 25-45 days depending on the bank, their staff, and their work load... and dare I say the quality/integrity of the bank's management. (Ask me about my NIGHTMARE with TD Bank in PHILADELPHIA !!! )
Phase 2- Here a new representative might be assigned. This phase is where changes on the preliminary HUD-1 are made. (HUD-1 is a form that lists all of the money and charges to the seller.) The BPO is reviewed, and they determine if a counter needs to made, then the package is sent to the investor (the ones who own the money) for their review. 25-45 days
Phase 3 - Once the investor is satisfied, it is possible that yet another person will get assigned to the file. But good news is that the closing negotiatins commence. This is when the bank tells you their verdict... Yes, No, Counter Offer, or Yes BUT you need to sign a Note for the deficit. Phase 3 is when the final settlement procedures are communicated to the Realtor. At this stage a closing can be schedued within a few days from acceptance.
We have had Short Sales accepted in 30 days. We have had Short Sales accepted in 6 months. A typical Short Sale is 3 1/2 months for us.
If you are involved with a Short Sale, you have to be patient and flexible. As a Realtor on the Sell Side... there is plenty of paper work and follow up with the bank throughout the process. Very little information is communicated during the entire process but much work is being done behind the scene by the Bank and the Listing Agent.
I hope this info helps you and you find it answers some of your questions about the process.
That is a great question ! It is one that every Buyer, Seller, and Realtor ask when dealing with Short Sales. The simple answer is:
" Your guess is as good as mine !"
The more appropriate answer is:
" It depends on the bank."
Not that either response is a good answer ! : (
Chris and I are self proclaimed Short Sale Specialists in Philadelphia. We do a lot of Short Sales. It is not that Philly has a sinking Real Estate Market. In fact just the opposit is true. We are simply Ready, Willing, and Able to do the work that is needed for a Short Sale. (Low commissions and lots of work are not popular in our industry.)
Yesterday I was on the phone with Bank of America. They have a 3 Phase process that can explain what goes on behind closed doors at most banks and explains why it can take a month or 6 months for a short sale to occur.
Phase 0 - The 100% complete Short Sale Package is submitted, digitally recorded and awaits assignment. This tskes 24hrs to 12 days as long as it was received by the right department.
Phase 1 - A negotiator is officially assigned to review the package, make sure all documents are there, order the BPO (BPO is like an appraisal). This Phase can take from 25-45 days depending on the bank, their staff, and their work load... and dare I say the quality/integrity of the bank's management. (Ask me about my NIGHTMARE with TD Bank in PHILADELPHIA !!! )
Phase 2- Here a new representative might be assigned. This phase is where changes on the preliminary HUD-1 are made. (HUD-1 is a form that lists all of the money and charges to the seller.) The BPO is reviewed, and they determine if a counter needs to made, then the package is sent to the investor (the ones who own the money) for their review. 25-45 days
Phase 3 - Once the investor is satisfied, it is possible that yet another person will get assigned to the file. But good news is that the closing negotiatins commence. This is when the bank tells you their verdict... Yes, No, Counter Offer, or Yes BUT you need to sign a Note for the deficit. Phase 3 is when the final settlement procedures are communicated to the Realtor. At this stage a closing can be schedued within a few days from acceptance.
We have had Short Sales accepted in 30 days. We have had Short Sales accepted in 6 months. A typical Short Sale is 3 1/2 months for us.
If you are involved with a Short Sale, you have to be patient and flexible. As a Realtor on the Sell Side... there is plenty of paper work and follow up with the bank throughout the process. Very little information is communicated during the entire process but much work is being done behind the scene by the Bank and the Listing Agent.
I hope this info helps you and you find it answers some of your questions about the process.
- Karen Parsons Fiddler, "Karen Fiddler"
- Contributions:189
Hi,
Wow....great question!! The short answer is "it depends."
The process is long due to the fact that so many homes are needing to be short sales. The first step is to submit a complete short sale package to the bank complete with an offer. Once this is received, it goes into the loss mitigation department of the bank.
This is where the delays come in.
The bank is going to order a bank appraisal (BPO) to determine if the value is fair.....the offer needs to be in the right ballpark. Once they have this back, they can compare the offer with the comps and then look at the specific terms. If these are seem reasonable, it will be approved. If there is a second trust deed then they will then review the same package.
Most of the time the first is not going to be paid off entirely, which means the second wouldn't get anything in a foreclosure. So the first will offer the second some amount to release their lien. If the second doesn't like the offer...this can cause problems also.
The delays and time problems come from all the various steps and the fact that there are so many files to work.
Sometimes you will see an "approved short sale" and this means the above steps have already been done. In this case, you can often have your offer confirmed in a very short time....you are just substituting buyers.
This is about a 2 month process...sometimes longer.
Karen
Karen Fiddler
www.great-western-realty.com
Wow....great question!! The short answer is "it depends."
The process is long due to the fact that so many homes are needing to be short sales. The first step is to submit a complete short sale package to the bank complete with an offer. Once this is received, it goes into the loss mitigation department of the bank.
This is where the delays come in.
The bank is going to order a bank appraisal (BPO) to determine if the value is fair.....the offer needs to be in the right ballpark. Once they have this back, they can compare the offer with the comps and then look at the specific terms. If these are seem reasonable, it will be approved. If there is a second trust deed then they will then review the same package.
Most of the time the first is not going to be paid off entirely, which means the second wouldn't get anything in a foreclosure. So the first will offer the second some amount to release their lien. If the second doesn't like the offer...this can cause problems also.
The delays and time problems come from all the various steps and the fact that there are so many files to work.
Sometimes you will see an "approved short sale" and this means the above steps have already been done. In this case, you can often have your offer confirmed in a very short time....you are just substituting buyers.
This is about a 2 month process...sometimes longer.
Karen
Karen Fiddler
www.great-western-realty.com
- real estate mike
- Contributions:2001
Could be a couple of weeks could be months. Where are you in the process? If your offer is already accepted then contact the title company to check progess. If you're just thinking of starting this process you will most likely use up some patience. Short sales are by different banks and their beurocracies so depends on how efficient they are. best of luck to you!
how long does it take to buy a short sale house?
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