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Time limit on short sales

By
Real Estate Broker/Owner with Crossroads Real Estate LLC

This year short sales is business as usual.  Everyone os doing them.  It does not take long to gain experience in this phase of the market.  How long do you think a buyer should wait for an answer on a short sale.  I have been trying to avoid short sales because I have been waiting for weeks of months to get an answer from the lender. 

I had one last year, we waited 3 months and never received an answer.  The buyer decided to cancel the contract. 

How long would you consider an acceptable time limit to allow for an answer from the lender for a short sale?

Here is Wisconsin we have a new form, Addendum SSO that explains what a short sale is and allows the buyer to set a time limit for the lender to reply.  There is also a new Amendmend for short sales that should be attached to the listing contract.

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Dennis Herman Crossroads Real Estate LLC Howards Grove, WI

Phone: 414-426-1784 

Comments (5)

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

You would think the banks would be able to do it in 30 days or less regardless of the level of files coming in. I mean I can think of the amount of files I can get through in a day and if that was all that I did. I think they should pay these people by the number of files and not hours and they would work faster and maybe care a little more.

Aug 14, 2008 11:52 AM
Kathie Burby
Coldwell Banker Mother Lode Real Estate - Sonora, CA
REALTOR, SFR, Tuolumne County Real Estate Guide

Here in California we call them long sales. HA! Unfortunately you can't dictate time limits to the banks or lenders. It is what is.

Aug 14, 2008 11:54 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

HA  LOL  I love Kathi's comment  " Long sales " !   That just about says it all !!!

Aug 14, 2008 12:03 PM
Michael Wayne Jackson
Coldwell Banker - Novato, CA
Broker - Seniors Real Estate Specialist Novato

I advise all of my buyers to write the offer and keep looking because of all the unkown factors.

Aug 14, 2008 12:21 PM
Dennis Herman
Crossroads Real Estate LLC - Howards Grove, WI
Dennis Herman

You need to be very careful when writing an offer.  If the seller's accept the offer you have a binding contract.  You have to watch out for how long the lender has to approve the offer.  If you give the lender 60 days to approve the sale you will need a cancelation mutual release from the seller to void the contract.  The seller may make you wait out the 60 days.  What will happen with prices in the next 60 days is anyone's guess. 

Aug 17, 2008 02:53 PM