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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Short Sales - on average how long? - update
BF and I went to see a short sale townhouse yesterday. It needs work, but its an investment and he and his dad can definately do it. Anyway, it seems everything I'm reading is saying that short sales actually take longer than a regular home purchase. In this case, this is an approved short sale - there are no owners and the house is vacant. The bank owns the house and its been on the market for 300 days (and the price keeps dropping drastically). So, it seems like the bank just wants it off their hands at this point.
My question is, in a case like this, does anyone know on average how long it generally takes for the whole process (bank to approve the offer and closing)?
TIA!
updated with a little more info below.
Message edited 3/14/2011 2:53:42 PM.
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Posted 3/14/11 1:27 PM  |
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Prudential Douglas Elliman Real Estate
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: Short Sales - on average how long?
if it's bank approved and you offer the approved price it should go fast...i tried to buy 2 short sales...the first we waited months and backed out b/c we weren't getting anywhere with the bank....that was in Jan 2009...the house is STILL on the market and has not sold...the home we did end up buying was also a short sale and we closed in 30 days...
good luck!
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| Posted 3/14/11 1:39 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Short Sales - on average how long?
should be quick- if you are buying it at the approved price
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| Posted 3/14/11 1:58 PM |
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Re: Short Sales - on average how long?
Are you sure it's a short sale? If the bank owns it, then it's post-foreclosure. In which case it's an REO, not a short sale.
In those situations, the bank hires an agent to sell the property and it knows what it wants in terms of price, so there's less uncertainty then in a short sale situation where the bank may not even know the house is on the market. REO properties usually require a lot of renovations (often need a cash buyer or a 203(k) rehab loan).
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| Posted 3/14/11 2:44 PM |
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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Re: Short Sales - on average how long?
Posted by Beth
should be quick- if you are buying it at the approved price
We're offering less than the asking price.
I'm not 100% sure that its bank owned...that's what the realtor told us. She said as of right now we're dealing directly with Chase, there are no sellers in the picture. The listing price is $299,900. I believe we'll be offering $250,000. We were told it's a "short sale" but I think we need more info.
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| Posted 3/14/11 2:49 PM |
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Re: Short Sales - on average how long?
I am sure it is a short sale, then. Usually with a short sale, the sellers don't care what the offer is, they are just looking to sell and get out from under the house. So the bank is the real decision-maker - they have to approve the sale, since they are going to be accepting less than what they are owed on the loan. That's probably what your realtor meant when she said you are dealing with Chase.
Chase needs to approve the short sale, but the house is still owned and being sold by the people whose mortgage is held or serviced by Chase (even though they've vacated the house).
The bank is supposed to have 10 days to respond to your offer IF they have a complete package submitted to them containing all of the necessary info. The process gets drawn out when there is a lot of back and forth because the bank doesn't have all info necessary to approve (from buyers AND sellers).
Good luck with your offer!
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| Posted 3/14/11 2:59 PM |
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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Re: Short Sales - on average how long? - update
Posted by Century 21 Dallow - Christine Braun
I am sure it is a short sale, then. Usually with a short sale, the sellers don't care what the offer is, they are just looking to sell and get out from under the house. So the bank is the real decision-maker - they have to approve the sale, since they are going to be accepting less than what they are owed on the loan. That's probably what your realtor meant when she said you are dealing with Chase.
Chase needs to approve the short sale, but the house is still owned and being sold by the people whose mortgage is held or serviced by Chase (even though they've vacated the house).
The bank is supposed to have 10 days to respond to your offer IF they have a complete package submitted to them containing all of the necessary info. The process gets drawn out when there is a lot of back and forth because the bank doesn't have all info necessary to approve (from buyers AND sellers).
Good luck with your offer!
Thank you for you response. BF is checking with the agent to be sure, but I do think it's likely a short sale. Hoping the bank is willing to take the offer...we've never made an offer on a short sale before so we're not sure if we're under-bidding...but tthe house needs so much work we just dont think its worth more than 250K.
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| Posted 3/14/11 3:27 PM |
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Re: Short Sales - on average how long? - update
It's sometimes tough to underbid on a short sale. The banks do their own BPO -- basically their own appraisal -- and have a number in mind that they want to get based on what they think the property is worth. But it's usually based on an external appraisal. A good agent can try to get the bank to take the offer by submitting photos of the interior documenting all of the work that needs to be done in the house.
It's also sometimes more complex because banks typically sell mortgages to other investors (in the secondary market), so even if Chase is servicing the loan, there may be other players involved who are owed money and need to be persuaded to take less than they are owed. And the banks usually hold their cards close to the vest, so it's not always clear who has a stake in the sale and what number they are looking for.
Short sale listings usually start high and then the price drops because the bank needs to be satisfied that they couldn't get a higher price before they'll take less.
Anyway, hope it works out - keep us posted.
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| Posted 3/14/11 5:28 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Short Sales - on average how long? - update
I went to a short sale class given by a major lender today
one of the many things I learned is there is NO such thing as an approved short sale
one of the main aspects of approving the short sale is the buyer
the short sale could have been approved with another buyer- but that is meaningless once they back out
just thought I would let you know!
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| Posted 3/15/11 7:33 PM |
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NoStressMom
My Heart and Soul
Member since 5/05 11122 total posts
Name:
D
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Re: Short Sales - on average how long? - update
Just letting you know I did purchase a short sale and we did bid lower then the asking price they came up another $13,00 but still under there original asking price
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| Posted 3/16/11 8:46 AM |
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