According to RealtyTrac data posted a couple weeks ago by Esther Cho of DSNews.com, some lenders are quicker than others at getting short sales approved. Fannie Mae, Freddie Mac, and FHA had the shortest timelines at 193 days in January 2012, a decrease compared to a year ago in January 2011, when short sales averaged 248 days. Ally Financial came in second at 321 days, reducing its timeline as well from 393 days a year ago. PNC Financial Group was third, taking 353 days, though the bank takes longer than it did a year ago when the it took 206 days. Wells Fargo came in fourth (385 days). Bank of New York Mellon took the fifth longest (402 days), followed by Bank of America (403 days) and Sun Trust (404 days). The short sale timeline includes the time a property starts the foreclosure process to the time it’s sold as a pre-foreclosure property.
What would be more useful to know for buyers would be how long does it take for approval from the time a hardship package including a buyer's offer is submitted.
A quick scan of data for Oceanside, CA shows for homes listed in the last 2 years, short sales averaged 138 days from list date to starting escrow, bank owned homes averaged 47 days, and all others averaged 47 days also. The ratio of homes sold was about 1/4 short sales, 1/4 bank owned, and 1/2 all others.
For my buyers, I tell them they should expect to wait 90 days from the time an offer is submitted until they might hear about a short sale approval or counter offer. What has been your experience?
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