Perhaps the most important fact to understand is that in today's economy short sales are a must to sell properties. Since property values have declined nationwide at such a rapid pace, The National Association of Realtors predicted that in 2009 and 2010 over 50% of all properties sold will be short sales or REO properties. It is unavoidable. If a house is to be sold in today's market, then a short sale will be needed to make that happen. Short sales require hours upon hours of work, and organization is imperative in order to get them done. Also be aware that short sales will typically take approximately 3-4 months to complete depending on which state you are in (see below for typical lender timelines), and that is simply because the majority of lenders are overwhelmed at the moment, some receiving as many as 500 or more short sale packages a day! And in some cases 2 or 3 weeks may go by without any change in the status a file.
Typical Lender Timelines (for each step in the short sale process)
Get authorization on file with lender 2 days
Compile short sale documents 7-14 days
Get short sale package on file with lender 3-7 days
Short sale package assigned to negotiator 10-14 days
Get BPO/Appraisal ordered 14-21 days
Schedule BPO/Appraisal with agent 5-10 days
Time for BPO/Appraisal to get to negotiator 21-28 days
Negotiate/obtain approval from negotiator 15-20 days
Total:77-104 days
Please note that these timelines can vary by lender and that the above timeframes are meant to provide a general timeline, again taking into account that nearly all lenders are overwhelmed with short sales. For short sale questions please feel free to visit our site www.thewatsongrouprealty.com or give us a call for a consultation. 1-800-264-3608 ext: 1001
Lenders we work with:
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