Is There a Length of Time to wait for Short Sale Approval?
And Why You Need to Involve Real Estate Investors!!
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Texas short sale buyers are singing the blues right along with everyone else. Every short sale is different and depends as much on the lender as it does on the listing agent. Some listing agents outsource their short sale negotiations to a third party, which can give the agent more time to more on other listings
Qualify Your Short Sale Before Writing the Offer
Before you decide to buy a short sale home, ask your agent to do a little groundwork first. Some of the things your agent might do are:
Examine the Comparable Sales
Many banks will discount the price a little bit from market value, but to get an acceptance, offers should be reasonable and close to the comparable sales.
· Check Out the Short Sale Listing Agent's Track Record
Make sure the short sale listing agent has the time to work effectively with you. Make sure the agent is willing to work closely with a sound real estate investor, so together they can move the transaction along.
· Ask How Many Short Sale Offers Have Been Submitted
While the listing agent may refuse to disclose the offer prices, the agent should let your agent know how many offers have been received. If there are multiple short sale offers, you may need to offer more than list price.
· Find Out if the Sellers' Short Sale Package is Complete
Working with an investor and their team will help eliminate the fear of submitting incomplete Short Sale packages. Bank negotiators will not process a file if the sellers' short sale package is incomplete, so make sure you are working with a good investor and their team.
· Get the Name and Number of Lenders
More than one lender might mean the file will take longer to close. Some junior lenders are demanding unsecured prom notes from the seller or more money than usual from the first lender. Also, some lenders will consider only the first offer. If you are not the first offer, your offer may fall by the wayside.
· How Long Do Short Sales Take?
Some lenders want to see every offer.
Other lenders are so swamped with short sale submissions that its employees can't respond in timely manner. What once took two months can easily take four months.
The short sale process, from submission to short sale approval, is generally as follows:
· Submission of offer and complete short sale package from the seller.
· Bank acknowledges receipt -- 10 to 30 days.
· Bank orders a BPO or appraisal -- 30 to 60 days.
· File is reviewed -- 30 to 60 days.
· Negotiator is assigned -- 30 to 60 days.
· Level II negotiator may be assigned -- 30 to 90 days.
· File is approved or rejected -- 60 to 120 days.
· If you're running past 120 days, it's possible that the listing agent or a third-party negotiator is not on the ball and is lax about calling the bank. Calling the bank means waiting on hold anywhere from 10 minutes to an hour or longer.
Or, a lengthy short sale period can also mean the bank has internal problems, not enough staff or has lost the file a few times, prompting the listing agent to resend the package over and over.
It can also mean that the appraisal is substantially higher than your offer, and the listing agent is building a case for a new appraiser.
Unfortunately, you can't always avoid problems on a short sale. Patience is key! You'll most likely eventually get short sale approval. Threatening to walk away means nothing to the bank. Your best bet is to stick it out and wait, providing you truly want the home. Realtors and investor make a good team. Work with them when you can.
humble,texas short sale
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