How Long Do Short Sales Take?

The truth about short sales is that while everyone wants it expedited, the process invariably stretches longer than expected. A short sale may take anywhere from three to six months and the closing of the property may take an additional 30 to 60 days. For buyers, a short sale definitely takes longer than buying a regular non short sale house. This is because the lender must first approve of selling the property at a price lesser than the balance debt amount on the property. Most buyers, however, prefer buying a short sale property because these can be obtained at less than their original market value. Banks often take as long as two months to six months to respond to an offer, whether positive or with a counteroffer.

Factors Determining the Pace of a Short Sale Process

Here are some factors that decide the length of a short sale process:

• Cooperation: Mutual cooperation among all including the seller, lender, buyer and the listing and selling agent is a must for hastening the short sale process.

• Responsiveness: A responsive lender will return calls promptly and conduct their work on time, leading to expediting of the process.

• Preliminary Work: Completion of preliminary work, such as conducting the exterior appraisal of the house and market evaluation by the lender can expedite a short sale. However, if the lender chooses to deprioritize a property or worse delays for unknown reasons chances are you could be waiting for many months for a response.

• Information Gathering: To ensure quick lender approval, homeowners must furnish requisite information and documents, such as bank statements, tax returns, hardship letter, financial statement and pay stubs. Sellers must also sign documents that allow the lender to coordinate with their listing agent or attorney to manage the entire process.

• Negotiation: The lender assigns the offer, along with the financial documents, to a negotiator based on his availability. A negotiator is assigned within 14 to 180 days, depending on the process and the lender. The negotiator then reviews the file, orders a broker’s price opinion and decides the acceptability of the offered price. If the price is considered too low, a counteroffer is made or it is rejected. If an agreement on price is reached, addendum and counters are signed and the buyer arranges for the finance and the deal is closed within 30-60 days.

To add to this load, sellers also have to sign documents to list their property. To get assistance on and to expedite the short sale process, contact the experts at www.floridashortsaleshelp.com. The company’s expert guidance and compassionate ways have successfully closed short sales throughout all of Florida.