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How Long Short Sale Takes You're Buyer - Your Washington, DC Area Realtor

By
Real Estate Agent with Keller Williams Preferred Properties DC: SP98364962 MD: 601648

Welcome to the world of Real Estate 2011.  You see a property you like, you want to write an offer on it and you find out it's a short sale.  But you really want to purchase that property, question is how long is this process going to be when you're on the buyers side.  Where you have no control of the transaction like you would have on a traditional sale when it's a buyers market.

Key factors to know how long this short sale process could possibly take when you're on the buyers side.

1) Which bank is it you are dealing with.  This is crucial because each bank vary on how they process their short sale.  In the past banks were taking 6 months to 1 year to process now it's more like 3-6 months.  Some of the smaller banks tend to be quicker but the bank actually tells you, which leads to number 2.

2) Is the Listing Agent an experience agent in dealing with short sale, I've learned that having a designation means nothing because some agents have NO clue to the process.  Is the Listing Agent diligently working on the file and supplying the banks everything they are asking for in a timely manner and is constantly updating the buyer's agent to the steps in the process.  If the Listing Agents ask the banks actually will tell them how long it will takes. Number 3 is a KEY point of where the process is.

3) Has the BPO been completed yet.  Depending on this answer will hold true to where the short sale is.  If the BPO has not been completed most likely it is in the beginning stages of the short sale.  If the BPO has been completed it is nearing the ending of the process.  The BPO gives the banks investors an evaluation of whether the current offer is justified by the market value of homes in that area and this is where they accept, counter, or reject.

It doesn't take a rocket scientist to know how long it's going to take, it just take good communication, and an agent who knows what they are doing.  Again Welcome to the world of Real Estate 2011.

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Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: sold@damontheagent.com

Comments(4)

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Ed Kurosz , Lic. Assoc. RE Broker
Douglas Elliman Real Estate - Westhampton Beach & Quogue - Westhampton Beach, NY
Douglas Elliman Real Estate Hamptons & North Fork

There really is no way of knowing... our last two short sales took 3months and 9 months to complete.

May 04, 2011 01:42 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I find the key question is:who is the investor and not the bank. . I closed short sales with the same bank in 3 months and 8 months. .who is the investor is the key.

Also, most lenders will not initiate a BPO unless there is  an offer on the table. . and if the BPO has already been done. . you are most likely competing with another offer and the agent may not tell you this. . 

 

May 04, 2011 01:44 AM
Damon J. Brockenberry
Keller Williams Preferred Properties - Washington, DC
Damon The Agent

Ed, you can find out if the process is near the beginning or is in progress based on if the BPO has been done, the question lies in if the Listing Agent is honest and is dilengently working on the file.  I've closed short sales with Ocwen, Wachovia, Wells Fargo, ASC, Bank of America, GreenTree, Chase, Suntrust, & a few small banks and the process varies but if you're on the buyers side and have experienced you can tell if it's worth waiting for.

 

Fernando, that use to be the case I've listed with a few who initiate the BPO once they have all of the seller documentation and they keep asking is an offer is present, depends on the bank.  Some banks don't but some banks do.  You're right on about the agent not being honest or communicating what's really going on which is part of the problem, next thing you know that house has gone to foreclosure because of that agent.

May 04, 2011 01:54 AM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

Well sometimes i dont know what to think of short sales. They are getting better and then they are not!

Aug 12, 2011 04:22 AM