So How Long is a Short Sale?

By
Real Estate Agent with Vanguard Properties 01232037

So How Long is a Short Sale?
 
This is a question I keep hearing from potential buyers and seller who stare at me in disbelief... Especially at the beginning of the process.


Our 4150 17th Street #22 listing became a short sale as a result of this week's price reduction. It has a few more complications including HOA assessements which will make this a bit more complex. Over the past weekend we've faxed our info packet into the lender and will be following up until a negotiator is assigned. I'll see if it can move any faster than the last one... So far 7 successfull short sales out of 7 tries. A great batting average!


Now thanks to the foresight of Deutsche Bank you can read for yourself - A SHORT SALE TAKES WAY TOO LONG... the only thing 'SHORT' about it is the amount the lender receives on the loan amount.


The following are a few of our own personal examples:


Lender - Deutsche Bank Average Length of Time - Personal Experience


Wells Fargo Bank 1st & 2nd - DB Avg Time: 8 Months - Experience: 185 Days* (6 Months)
Both first and second loans held by WFB -


SunTrust Mortgage 1st & 2nd - DB Avg Time: Not Rated by DB - Experience: 262 Days* (9 months)
Both first and second loans held by Suntrust -


WFB/BofA 1st & 2nd - DB Avg Time: Not Rated by DB - Experience: 183 Days* (6 Months)
Mixed Loans, both negotiated.


Chase Bank 1st & 2nd - DB Avg Time: 8 Months Rated by DB - Exeperience: 206 Days*
Both first and second held by Chase Bank -


* My days counted include market timing from receipt of the listing as a short sale, until the bank accepts and CLOSES and RECORDS the sale. Deutsche Bank's day count is from receipt of an acceptable offer until closing and recordation. Market time to receive an offer is a variable in any market and we're currently experiencing anywhere from 2-6 weeks market time in San Francisco. Anything past that means another price reduction is in order.


Article courtesy: REO Insider - Jon Prior 6/23/2010
(Short Sales ranked in Length of Time to Complete and % Recovery of Assets.)


Michael Ackerman - Oliver Burgelman
Building Trust for Life - Zephyr Real Estate
4040 24th Street, San Francisco, CA 94114
415-695-2715 - ABZ@ZephyrSF.com

8/18/2010 Update: Great news at Chase - It seems that we have a few 'fans' at Chase Bank.  They let me know things are changing and applaud our efforts.  Oliver and I have been encouraged whenever we have a new Chase short sale to give them a call.  As a matter of fact this happened today as my business partner Oliver relayed to me he received a call from Chase Bank regarding our new short sale listings  at 601 Van Ness Ave #843 - apparently shortly after I got off the phone with our negotiator on our 8300 Oceanview #22.   I guess there's something about being a 'Short Sale Whisperer'  

 

Posted by

Michael Ackerman, CRS, ePro, SFR
www.BuildingTrust4Life.com
Zephyr Real Estate
4040 24th Street
San Francisco, CA 94114
415.307.5850 cell
415.695.2715 direct/pager
415.277.3742 fax

ABZ@ZephyrSF.com

Top Producing Agent - 2000 - 2015 - Year after Year
Working hard to be a Top Producer in 2016
California BRE# 01232037

 

Comments (6)

Steve Merson 512 412 1621
Keller Williams Realty - Austin, TX
CNE, e-PRO

Hi Michael,

Thank you for that well informed post. I have had a short sale go from contract to close in 42 days but generally speaking you are right. The only thing short is the amount the lender receives.

Steve

Aug 17, 2010 06:54 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Great job and a great record of closing short sales! I represented a buyer where we went into contract on April 26th and closed on July 9th. 44 days. One loan, CitiMortgage. If felt like a normal transaction to me, but I'm not the one who had to do all the paperwork and faxing.

Aug 17, 2010 06:58 AM
Frank Castaldini
Compass - San Francisco, CA
Realtor - Homes for Sale in San Francisco

Nothing short about short sales.  I have one and it's been a long time.  So many layers.  The process is not making this easy for anyone.  Obviously everyone needs to be prepared for a long haul.

Aug 17, 2010 04:04 PM
Victor Zuniga
Berkshire Hathaway Home Services California Properties - San Diego, CA

Michael, I hate to say it but a short sale is as long as the bank ants to make it. They all work so different from one another. I wish we could use a standardize system for all of them. Wishful thinking!

Aug 18, 2010 08:27 AM
Michael Ackerman
Vanguard Properties - San Francisco, CA
CRS, Top Producer, 24+ Years Experience!

8/18/2010 Update: Great news at Chase - It seems that I have a few negotiator 'fans' at Chase Bank.  They let me know things are changing there and applaud my efforts.  Although the deals have taken quite a bit of time, they're encouraging me to call anytime I have a new Chase short sale.  This has already been exemplified on their call to my business partner Oliver as they would love to work with us on our new short sale listing at 601 Van Ness Ave #843 listing.

Old southern German saying; "Wald 'rein, Wald 'raus."  The way you holler in the woods is the way the echo comes back.

Aug 18, 2010 07:01 PM
Leo Gonzalez
Castle Realty Group Inc - Riverside, CA
Castle Realty Group Inc

Great Stuff!!

Aug 19, 2010 12:49 PM