If you have never handled a short sale, you may not know where I am going with this. For those of us that handle many short sales and have success with closing them, I am sure you will understand.
Now, I would love feedback on some of these statements.
How long does the typical short sale take to close from listing to close?
How long should it take?
Usually, I estimate a short sale listing I handle to take up to 30 days to generate an offer, followed by 30-45 days for lender approval. We are at 60-100 days out at this point. Then we need another 15-30 days for other contingencies and work to be completed and we are about 90-105 days out. I think that is an optimistic time frame.
Knowing this, I had recently received a listing that had a scheduled Sheriff Sale date less than 75 days out. My plan of action worked out very well (though it was stressful going through the process hoping the sheriff sale didn't occur first). Upon meeting the seller and assessing the condition of the house, within days I had all necessary documentation to submit to the short sale lender (with exception of the Sales Contract and buyer info).
I proceeded to list the property at a price where it would sell within 2 weeks (while noting on a report an itemized list and avg cost estimate of all repairs necessary for the lender). Within 30 days we received an offer! A few days later everything was packaged up neatly (don't forget to write loan # on every page of fax or email submission on docs; most lenders require this) and sent for approval.
Lender contacts us within 2 weeks for additional documents/explanations and I re-submitted directly to the negotiator within 24 hours (in advance I coach my seller how to be connected with the process and they were). We received approval and had an approval expiration date up to the Sheriff Sale date! Success right? Not so fast. Now we just had to wait for the buyer's side to complete their mortgage stips, etc... Uh oh....
Part 2 to follow. Stay tuned for day 65-75.
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