According to the State of Indiana, a short sale offer is accepted when the Home Owner accepts it. Legally the Home Owner is the Owner of Record, the third party approval is a contingency of the sale.
Does it take long to get the third party approval? Yes and No. Some banks are quick to recognize when they have a fair market offer and make the decision quickly. I have had some approved in as little as 20 minutes after submission and others have taken as long as 5 months.
Why does it take so long for some banks? Most banks have so many offers that are for less than their borrowers current mortgage balances that they are overwhelmed with work. Some have anticipated the extra work and took measures to hire and train employees. Others did not prepare for the rush...
Is it still a good deal to buy a short sale? I would have to say yes, in most cases it is. Most of the homes are still being lived in and are taken care of as opposed to a vacant home that is owned by the bank and where vandalism is common.
Whether you are a potential Buyer of a Short Sale Property or a Seller of a Home that isn't worth what you owe on it in today's market, give Evelyn Johnston with Prudential One Realty a call at 574-304-7148. She is an Elkhart County, Indiana certified short sale specialist!