How can you expedite in getting an approval for a short sale?

Real Estate Agent with BaileyMeadows, Inc - Real Estate Services

We all know that short-sale transactions are long & tedious and in short "a patience test".  I used to believe that it would take 45-60 days to close a short-sale transaction. However, I am experiencing a 60-75+ days to close due to some lenders/negotiators ways of not responding right away and/or not responding at all! I know the number one thing is to submit a complete package as requested by the lender/negotiator and I do. It's just that not only is it a patience test for us as agents, but it is more of a patience test for both the anxious sellers and the worried buyers.  I am looking for ideas on how we can shorten the time process in getting short sale approvals from lender/negotiators.  Please share without me your ideas and expriences.  I'd really appreciate it!

Comments (13)

Michelle Way
AVALAR Pro Realty - Jackson, MS

I try to provide the lender with everything at one time.

1. The listing agreement (the entire package)

2. A list of agents or appraiser that complete BPO's in that area

3.If an offer has been made I send the whole thing with the loan # of the seller on every single page

4.I document on the fax cover what every page contains For example.Page 1-14 Listing agreement and offer. Page 15-27 Hardship letter and seller paycheck stubs and etc.

 This seems to help out a lot

Jan 10, 2008 12:17 PM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

Make sure Wells is not the mortgagee.  = )     I have heard this over and over from investors that when they try to do a short sell Wells is the most difficult. We sell our 100% conforming loans to Wells because they have the best pricing so they have good points! Just know that they will be a challange! I would post this in an investor group. Let me know if you don't get any more responses and I will contact an investor of mine who specializes in short sells to get some tips.

Jan 10, 2008 12:41 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &
Shiela- The negotiator isn't the final say. Some loans are in portfolios and those boards don't meet daily. Each note is different as each lender handles them differently. In most cases the negotiator is just a spokes person with an impossible amount of work.Just submit full packages, and follow up.
Jan 10, 2008 12:54 PM
Ralph & Susan Alvarez
REMAX Benchmark - Las Vegas, NV
Real Estate Agent Las Vegas NV

working on my first short sale listing, this is what I was told to include.

Hardship letter, Financial Statement (stateted), w2 tax return, paystubs, recent bank statement, recent motgge statement, listing agreement, borrowers authorization for each loan, listing agreement and estimated hud at what ever price.

If you have an offer you need purchase agreement, addendums, Comps, property profile which will also have comps. ( use comps from months back to show decline) also note short sales and foreclosures in the neighborhood.

Jan 10, 2008 01:31 PM
Sean Dankers
Realty World Select - Fredericksburg, VA

I have book-marked this for future use.  Thanks to all who have provided information.

Jan 10, 2008 11:27 PM
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA


I have just entered into my first in many years and on top of that my Buyer's are young and first timers.

I will be monitoring your comments...great post.

Jan 11, 2008 02:37 AM
Renee Stengel
Houlihan Lawrence, Associate Broker - Katonah, NY
Westchester County
Good question.  Even if you submit all the necessary documentation there is still bureaucracy so, the time element is not controlled by anyone but the bank.
Jan 12, 2008 03:41 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service
Good post. We all have to be patient and learn as we go in this life of short sales and real estate.
Jan 12, 2008 07:12 AM
Bernie Germani
New Key Lending - San Pedro, CA


I wanted to share with you what has been working for me.

The analyst/mitigator that does not have authority to make decisions when the loss severity is too great or when the offer is not the full market value, you may considering escalating to a Senior/ Chief Loss Mitigator.

I send emails(after searching for an email address, most of the time I find it it is a big comapany everyone there will have there name at name of company) example to the Senior/Chief Loss Mitigator, and I Cc the CFO.... It is amazing I seem to get quicker responses..

Jan 12, 2008 05:04 PM
Shiela Meadows-Bailey
BaileyMeadows, Inc - Real Estate Services - Mountain House, CA

Hi Bernie Germani,

What if the CFO tells me to not CC him/her and to just stick with communication with the negotiator/representative?

Jan 15, 2008 10:52 AM
Shiela Meadows-Bailey
BaileyMeadows, Inc - Real Estate Services - Mountain House, CA
Thank you so much for all your advice. Especially the itemization/table of content idea on the cover page. Since then, I have closed over eight short-sale transactions and all lenders did mentioned on how easy it is to navigate thru my package. Thanks again!
Mar 21, 2008 05:44 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA


Getting the package to the bank BEFORE a contract is key.  Not submitting multiple offers is another.  These banks are totally overloaded.  And fromthe listing side, if you start negotiating for a DEED IN LIEU while looking for a contract, the bank will have already had the appraisal and title work done.  Of course, you can get title work done if you have a friend at a settlement company.  Also, submitting a HUD, detailing the total shortfall is VERY HELPFUL.  You have to assume that the negotiator sees it ONCE and you have to enough info before them to give you the yes or no after that glance.

Mar 21, 2008 09:57 AM
Derek Bauer's, Door to Dreams Home Selling Team
Real Estate One - South Lyon, MI

Short Sales are the most frustrating thing I am experiencing right now.  I have 3 offers out on short sales that have been out for 5 to 6 weeks, each of them, with not even a hint of a response yet.  I just closed one that was almost 5 months beginning to end.  I wish banks would get their act together ... no wonder we are in such a mess.

Mar 21, 2008 11:39 AM