Did that short sale really take over 100 days to close......

By
Real Estate Agent with Flora Real Estate Group CALBRE #01860356

We see and hear it all the time..."I'm not interested in looking at short sales...those things take forever to close"! But like all things in real estate, you can't really believe everything that you hear.

Case in point...I have a short sale listing that we received short sale approval on within 5 days of submitting the package to the lender. Great news for everyone, the buyers and lenders were very excited for the news and excited to close escrow, per the terms of the contract within 45 days. We are now on day 98, with no loan documents in escrow. What everyone anticipated to be a short, painless close of escrow (because getting short sale approval is supposed to be the difficult part), has gone on and on. Why? Because of conditions from the lender and waiting for a 4506 form from the IRS. This buyer is putting in excess of 30% down and has excellent credit (based on information from the buyers agent and lender).

This is not the only short sale held up by the buyers loan...I have another that we are now in excess of 60 days beyond our contractual date, which received a short sale approval in 10 days.

So moral of the story...besides, don't believe everything you hear...is it is not always the short sale that causes the delay. Especially with our current lending environment and the conditions and requirement imposed by the lenders.

Comments (5)

Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

It is true with short sales you never know what to expect;especially, in today's market.

Feb 18, 2011 08:28 AM
Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

Those damn "short sales" should be called "long sales" cause no matter what, it just always seems to drag on for one reason or another!

Feb 18, 2011 08:33 AM
Trang Beuschlein
Homes for Sale in Campbell CA- Broker-BKR Realty - Campbell, CA
Campbell CA Real Estate - Campbell CA Homes for Sa

It seems like it's harder to sell or buy a home now.  As a seller, the buyer's loan is the biggest obstacle so when you get a CASH offer, it's like gold.  As a buyer, there are so many short-sales out there that the short-sale approval is the main delay.  I have 2 buyers now where we are waiting on short-sale approval from the bank.  We have been waiting for almost 60 days on one of the homes and only 10 days on the other one.  I already set my buyers' expectations that it can take up to 6 months to get short-sale approval.

Feb 18, 2011 08:37 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Absolutely all the ducks have to be in a row, especially for a short sale.  Since the IRS is involved who knows how much longer this is going to take.  

Aug 23, 2011 04:23 PM
Mary Hillerman
Crye-Leike Realtors® - Bentonville, AR

Short sales still are a challenge, I hope you are doing well and find the time to come back and play in the rain.

 

Apr 13, 2013 07:19 AM