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How Long Does A Short Sale Take To Close? How's About How Long Is A Piece of String..

By
Real Estate Broker/Owner with Global Property Systems Real Estate DOS NYS #10491202606

I know, short sales are named that because they are a transaction in which a lender accepts an offer on a house that is “short,”or not the full amount owed. But when it comes to closing a short sale, there ain’t NOTHIN’ short about ‘em. At least not when lenders take a year or more to approve them.

Here’s the scenario I’ve encountered over and over. We Realtors submit a complete short sale package to the lender, with all the forms, documents and paperwork the bank requires. For the next several months, the bank sits on the application, often requesting updated information such as proof of income, employment status and portfolio values. And we wait. And we wait.

Finally the lender responds after doing a BPO. They want 30% more than the contract value of the house which was the value of the home six or nine months ago. The deal falls through as the buyers, who have been waiting forever, walk away. The house goes back on the market and the cycle starts all over again.

Our lenders are going to have to take some deep breaths and face the fact that, yes, they caused this mess with their “no income, no asset” loans, robo-signings and unregulated lending policies, and are going to have to show some losses on the books to fix it. The way it is now, they’re holding up the entire U.S. economy from going forward. New housing drives a large part of our economic fortunes, but contractors can’t build new homes because there are so many existing properties for sale, with thousands more in “shadow inventory” waiting to come on the market.

 

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Comments (3)

Kristin Moran
Owner - RE/MAX Access - KristinMoran@Remax.net - San Antonio, TX
San Antonio,TX - Real Estate - 210-313-7397

They are so frustrating but worth it to all involved I believe.  Ugh.  Just started another one today, got an offer & ready to roll!

Jan 06, 2012 12:55 PM
Anonymous
cathy

How long does the process take, from your experience?

Sep 28, 2012 05:37 AM
#2
Vanessa Saunders
Global Property Systems Real Estate - White Plains, NY
Real Estate | Done Differently

Hi Cathy, it really depends on a lot of factors. The most important being does the listing agent know what they are doing?

And does the buyers agent have experience of short sales to handle what's needed to push the offer thru the many hurdles before the lenders will accept their offer.

In my experience and I've had a lot! There is no rhyme nor reason to what short sales are successful and how long they take. Over the past four years, I have sold over 30 of them and all of them went through. The shortest took 30 days and the longest 18 months.

There are so many factors that come into play there is no hard and fast length of time set in stone. All I can urge you to do is to make sure you find an agent that does hold a designation such as CDPE (Certified Distressed Property Expert) or SSAA (Short Sale Association of America) to assist you.

I have a ton of information on my website that you might find useful, and please feel free to call for a confidential chat. I will help find you a well qualified agent to guide you through the process if you would like to chat in person.

Cheers, Vanessa

 

Sep 28, 2012 06:11 AM