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short sales in co.spgs.co. How long does it take to get an answer yes-no and to close with a short s

close short sale verses a foreclosure? I understand the bank gets 50% with a short sale 30% with a foreclosure.Is this true in Co.Springs?
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May 12 2010 - Colorado Springs
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We have lots of experience with short sales & foreclosures in Southern California & relatives living in the Denver area tell us about their experiences in Colorado, & we have managed to close most of our short sale listings.  It usually takes about 30 days to know whether the bank will say yes or no, but the final approval letter takes another 30 to 60 days depending on whether you have a 2nd or more.  Most of the time we have to escalate our communications to get a response, but we do so very politely.  New language on the final approval letters is causing our sellers to elect a foreclosure.  The bank warns the sellers in bold print that they reserve the right to pursue a deficiency judgment in the future, so anybody with any sense would elect the foreclosure.  Most sellers want a positive statement included &/or attached to the final approval letter stating that the bank will not pursue a deficiency judgment but the best most banks will do is eliminate the language, which appears to still give banks the option to pursue a deficiency judgment in the future.  Lawyers for the California Association of Realtors & private attorneys advising our sellers have said it doesn't make much sense to agree to a short sale without a positive statement on the final approval letter that says the bank will not pursue a deficiency judgment.  Some have suggested that a one action rule would prevent the banks from pursuing a deficiency judgment, but our legal contacts have said that a short sale will not count as an action.  It hasn't been tested in the courts, but it doesn't look like the one action rule will work here in CA.  We have noticed that the banks will agree to this positive statement for sellers that are older or ill but if the sellers are younger, I guess the banks just feel there is future income potential & its recovery department wants to reserve the right to pursue them for the balance owed someday in the future when the sellers are back on their feet.  It will be interesting to see what happens in the months ahead.  I think this is something a buyer of a short sale listing should think about... 
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May 13 2010
I have seen a shorter time frame lately for short sales than what we used to see. The key as Joni mentioned is asking the right questions to the listing agent before falling in love with it. Is the list price within 10% of real value? Are there multiple offers? Is there more than one lien?  Is the end investor Fannie Mae, Freddie Mac or FHA? You can save a lot of time and heartache by asking these types of questions up front before viewing the property.
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May 13 2010

How long it takes really depends on several things.  What bank you are working with and how experienced the listing agent is.  Bank of America is moving quickly in the process as they have streamlined things.  The last one I have worked on got an approval within a few weeks after all negotiating was completed on price. I suggest you work with an experienced buyers agent as they will know what questions to ask the listing agent.  Good luck.  Foreclosures are a bit quicker as you are only dealing with a bank.  There are alot of both out there so they are not hard to find. 

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May 12 2010
Go with the foreclosures if you can.  We've had short sales take over 6 months to complete.


Don't know where you're getting the 30% vs. 50% numbers but that's not correct.
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May 12 2010
 
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