Short Sales - those who have bought one:

People who have purchased short sales... can you give me a timeline? I know everyone is different, but I'm trying to get a basic idea.

When did you buy your home?
How long after you put the offer in did you hear anything?
When did you actually sign contracts?
How long did the whole process take?
Any additional information:


Thank you! We put an offer in on a short sale, I'm just trying to get some ideas.

Re: Short Sales - those who have bought one:

Message edited 1/31/2013 5:06:54 PM.

Re: Short Sales - those who have bought one:

When did you buy your home?
- Currently in the process

How long after you put the offer in did you hear anything?
- We went heard right away from the seller, went into contract about a week or at most 2 after we put an offer in. As far as hearing from the bank, we heard from them and did another round of negotiations (they made us go up from our original offer) around December...so 4 months after we went into contract.

When did you actually sign contracts?
- Mid-August; we were officially "in contract" before the month closed out

How long did the whole process take?
- Still going on! It's been about 6 months now. Lots of things holding up the sale, like 2 years worth of back taxes, the sellers going through bankruptcy, and waiting to get all the proper forms that show the sellers have taken care of all the judgements against them. I'm HOPING we'll close next month, but who knows.

Any additional information:
- Short sales are not fun. Just prepare yourself for a long road and HOPEFULLY it will all work out and you'll get your house. I'll keep my fingers crossed for you (and me too, lol)


If you ever have any questions about the process, feel free to FM me. I feel like I'm an expert now.

Message edited 1/30/2013 8:00:06 PM.

Re: Short Sales - those who have bought one:

So I think my question now is mainly about CONTRACTS...

The first poster to respond didn't sign contracts until months after they made their offer--- the second poster signed contracts a week after the seller approved the offer.

We were told the homeowner approved our offer, then they submitted to the bank, the bank sent out someone to appraise the home, they came up with a number (it appraised for 30k more than our offer, our offer was at asking price). Since then, we were told we are the only offer, we gave a binder when we offered, and we were told that the selling agent is negotiating with the bank the appraisal price -- trying to close that 30k gap. Otherwise, the bank will counter. In the meantime, we have not signed any contracts and it has been since mid December -- this all happened, found it, offered, etc. around December 12th / December 13th. But still... just not sure if this no contract thing yet is a "bad" thing.

Does this make sense? lol I hope so!

Re: Short Sales - those who have bought one:

I have a higher then average closing ratio on short sales- and I don't play games like some agents

I accept an offer

send contracts - right away- I CAN not start negioating with the bank with out contracts (in every other state the parties go into contract with the offer- as you can see on HGTV)

the bank part can take 60-120 days (I would not do all this work for a buyer not in contract- and as a buyer someone else come in and take the house)

I have agreed to take less - if the buyer will agree to come up when the bank counters

Re: Short Sales - those who have bought one:

Message edited 1/31/2013 3:07:35 PM.

Re: Short Sales - those who have bought one:

We just started our short sale process.
We are inspecting the property Saturday.
After which, we expect the contracts to be signed and then sent to the bank. If your offer is accepted, I would work to get get into contract with the seller, as that part of it, is still normal of what you would do.

Re: Short Sales - those who have bought one:

Timeline depends on a lot of factors - the bank or banks involved, how cooperative the seller is being (as there is a lot of information they provide to the bank), who is handling communications/negotiations with the bank. So it's hard to get a good idea of how long it may take from hearing other people's experiences.

In my company, we use an outside law firm who specializes in distressed properties to handle the short sale paperwork and negotiations with the bank, which really streamlines the process and usually expedites bank approval/closing.

You should definitely talk to your agent, if you have one, or the listing agent, to find out some of the answers to these questions. As a buyer, one of the downsides of a short sale is that you really have very little control over the process. So it's good to do some due diligence upfront.

I agree that you need to be in contract with the seller for the bank to entertain the offer. It's not the same as being in contract as a traditional sale, as the contract is "pending bank approval." But it's a necessary step - the bank will want to see a contract before they approve a sale. So definitely find out what is happening with your offer.

Good luck!

Re: Short Sales - those who have bought one: