How Long Should A Short Sale Take?


Scottsdale AZ Realtor

During a short sale process it is typicall for a buyer to have the following wuestion,:
It has been over three months and I am still waiting for the sellers bank to approve the offer. Three months seems excessive to me to wait and not even have a purchase agreeent yet. Is this normal?

Short sales are not a typicall buyer/ seller situation. The bank is involved in the entire process, and they have steps and procedures to follow.

A short sale may start out the same for a seller when they are listing their home for sale, and it may start out the same for a buyer, in as much as they put in an offer to purchase the property, and that is where it stops to look the same as a normal sale, or purchase.

When a seller starts to do a short sale, they will fill out normal listing agreements, and some additional paperwork, listing the home as a short sale. The seller is typically behind on their mortgage by several months at the time of the listing.

Then the seller also needs to fill out additional paperwork with the listing agent, that the bank is going to need to start the short sale process. At this point the seller will continue to live in the property if they desire, and the listing agent will start the short sale negotiation process with the bank.

The property is listed in the MLS for sale, as a short sale, and should be priced, as to attract a buyer in a short amount of time.

A buyer then decides to put an offer in on the property. The seller will review the contract with the listing agent, and if the terms are acceptable, the seller will sign the contract. At this point in time, the seller has accepted, and the bank gets notified there is a contract, and has the contract delivered to them.

Now once the bank receives the contract, the short sale process still must be completed, and the contract will not be signed by the bank, or approved by the bank at this time.

The bank, once they have completed their short sale process, will notify the listing agent of their decision. The bank will typicall either accept the contract as it is, or create a counter offer to the contract terms.
Then the buyer needs to decide if they are willing to accept the banks terms. If the buyer does accept the banks terms, then the short sale will proceed, and the buyer and seller will do what they need to do to finish the sales process.

The entire short sale process, can take between 30 -120 days, and it always depends on several factors. The seller providing all the necessary paperwork to the listing agent, and the bank.

The listing agent needs to stay on top of the entire process, and typicall call the bank or email them on a sometimes daily basis.

The buyer needs to do everything that they need to do to have their loan in place, prior to the bank accepting the purchase contract.

The bank need to have teir entire short sale process down, and have all their employees involved, doing all they can tpo complete the short sale process on time.

Then there is always the investors that are tied in with the bank, that will have to approve the deal.

If anything, or anyone during the short sale process, fails to do their part in a timely manner, the entire short sale process will be affected.

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