Short Sales

Patience is important for the Short Sale process!

A short sale can prevent a seller’s home from going into foreclosure. For the buyer, it usually means you are getting the home at the current market value.

A short sale is when a lender is willing to accept less than what is owed against real property and helps the homeowner pay the bank off and avoid foreclosure. The owner is usually facing foreclosure and not able to pay their bills. The downside for all parties involved is the time it takes to close a short sale. It can take from two weeks to as long as two months to hear back from the lender concerning the purchase offer.

Short Sale Timeline

• Submission of offer and complete short sale package from the seller.
• 10 to 30 days - Bank confirms receipt
• 30 to 60 days – Bank obtains appraisal
• 30 to 60 days – File is examined
• 30 to 60 days – Negotiator is nominated
• 60 to 120 days - Offer is accepted or rejected

Most short sale homes are sold as is as the banks do not want to invest any more money into the property. Lenders can change the terms at the last minute depending on market prices and any new legislation. A buyer does not know what the lender will take for the property until they submit the offer. If there are other offers on the table, that will be taken into consideration by the lending company. Most bankers will consider an offer at 90% of market value.

More to come on short sales!

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