Depends on whether you are the one that wins out!!!
Short Sales are closing!!! They have been some fabulous deals on them.
However, if you are seeking a close within 30 days, short sales may not be the best option.
Can short sales close sooner? In some instances yes, if there is only one lender, if the listing agent is able to get a pre approval of a specific amount lender will allow for the sale of the home, if the lender's system is streamlined to handle such.
Unfortunately, most are taking a minimum of 2-3 months.
There are several factors involved with the lender making fast decisions.
Has a Notice of Default been filed?
Is it near a Trustee Sale?
Has all of the proper paperwork been processed for the seller by the lender to determine if their home is a candidate for short sale?
A recent caveat unfolded in recent weeks......The Lender, NOT the buyer or present owner of the home, after the close of escrow placed thier own Mortgage Insurance (MI) on their loans for protection.
This means if their loan is insured, the lender has lost motivation to negotiate a short sale.
The insurance company may come back with a hefty note they will expect the homeowner to sign to release the home as a short sale. Most sellers depending on the amount will choose to walk away.
Most lenders will not consider a short sale unless the homeowner has missed their monthly mortgage payments x 3. Some will consider after 1 missed. Others have indicated to go ahead and put on market without missed payments and show them offers as they arrive.
Most of the lenders will put those nearest Trustee sale at the top of the pile. That is why you hear stories of up to 6 months or longer on some homes for a decision.
Yes, buyers have hung in for up to 4 months and lost out on the home. It is a risk. As long as you are aware of the risk and do not attach emotions to your offer you may very well get the home of your dreams at an affordable price.
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