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Author
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Topic: Buying a short sale house
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69stang
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Member # 5609
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posted
 
 
I was wondering what the expected wait time there is after the seller decides to send your offer to the bank for the approval of your offer ???
Thanks
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1968 firebird- sold
1992 mustang gt - sold
1969 mustang coupe- current project
Posts: 809 | From: 707 | Registered: Apr 2005
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SydeWaySix
CAFords OG
Member # 3596
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posted
From what I heard, there's nothing "short" about the sale!!! I heard it takes forever! I prefer foreclosures.
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2013 Boss 302 #356. Performance White. Stock.
1965 Fastback GT Restored to stock spec.
Posts: 9882 | From: Bay Area | Registered: Dec 2002
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REDLIGHTING
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Member # 11296
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posted
Worth the wait
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1992 coupe YSI, DART,
225 TFS HIGH PORTS
04 mystichrome convertible
2006 GMC sierra slt crew
Posts: 441 | From: sac | Registered: Sep 2011
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REDLIGHTING
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Member # 11296
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posted
Worth the wait
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1992 coupe YSI, DART,
225 TFS HIGH PORTS
04 mystichrome convertible
2006 GMC sierra slt crew
Posts: 441 | From: sac | Registered: Sep 2011
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v-town coupe
fordologist
Member # 2771
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posted
They usually meaning like 98% take forever! if you like it go after it, but dont stop looking.putting all your eggs in one basket when its a short sale house is not suggested.
Posts: 4597 | From: the V-town | Registered: May 2003
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LSFairmont
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Member # 6001
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posted
It takes about a month or so while all the paperwork is being processed... I'm actually dealing with one right now
Posts: 3652 | From: the land of the lost | Registered: Sep 2005
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REDLIGHTING
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Member # 11296
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posted
Worth the wait
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1992 coupe YSI, DART,
225 TFS HIGH PORTS
04 mystichrome convertible
2006 GMC sierra slt crew
Posts: 441 | From: sac | Registered: Sep 2011
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915.0gt
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Member # 9518
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posted
quote:
Originally posted by slow96cobra:
It takes about a month or so while all the paperwork is being processed... I'm actually dealing with one right now
All house sales take a few months, its not a fast process
Posts: 536 | Registered: Oct 2009
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venomous99
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Member # 1917
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posted
there is no rule of thumb on how long it takes for a bank to review and then either reject or approve a short sale. each short sale is different and affected by various factors that could expedite or prolonge a short sale so to answer your question....depends but be prepared for a potentially long ride without any guarantees. because of the long waiting period and the uncertainty on whether the bank will even approve the short sale most steer clear of short sale.
in my situation, it took 5 months to hear back from the bank from when my offer was accepted.
is a short sale for u? ull need to assess whether the waiting period is worth the hassle but potential upside on a getting in a good price point. just remember, just cause a owner accepted your bid doesnt mean the bank approves the short sale. ppl get all caught up in these short sales by being misinformed thinking theyve gotten a house but much later down the line find out the bank rejected the short sale and the home ends up foreclosing/becoming an REO.
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MKII Q7
89LX
Posts: 4811 | From: dc | Registered: Oct 2002
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1996 GT
I'm Joe Yates
Member # 4992
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posted
It really depends on how far the sellers agent has gotten with the sellers bank which determines how long a short sale will take. There are i believe two statuses, short sale approved or not approved which means the sellers have already processed their paperwork with their bank giving them authority to sell the property less than what they owe. If they havent gotten authority from the sellers bank then it could take 6 months to a year, otherwise its usually 2 or 3 months if they have already done their homework.
But here's the thing, once you put in your offer the seller has to submit that to the bank for them to review, then the bank does their own appraisal or bpo and determines if your offer is good enough for them or their investors. Even though you and the sellers have an agreement the bank can come back and say nope we want 10k more. But then they'll have a date which you have to close by because if you dont their appraisal expires and the sellers have to start the paperwork all over again.
I think short sales can be a good buy and are probably easier to process the paperwork because there is plenty of time to get approved and all of your loan stuff in order vs foreclosures which pressures you into closing within 30 days. Problem with foreclosures now is that there are not that many more around so if you get into contract on one you probably had to outbid a couple offers just to get into contract. And if your getting a loan sometimes the appraisal comes in lower which you have to go back to the sellers and ask for a reduction in price which can take even more time than a short sale. I think if you're lucky enough to get in on a home this summer you're gonna have a decent priced home with a killer interest rate and in a better position than 90% of the homeowners out there. Good luck! ![[patriot]](graemlins/patriot.gif)
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http://i.magaimg.net/img/257w.png
Posts: 9308 | Registered: Oct 2004
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venomous99
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Member # 1917
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posted
quote:
Originally posted by Cobra 93-4992:
It really depends on how far the sellers agent has gotten with the sellers bank which determines how long a short sale will take. There are i believe two statuses, short sale approved or not approved which means the sellers have already processed their paperwork with their bank giving them authority to sell the property less than what they owe. If they havent gotten authority from the sellers bank then it could take 6 months to a year, otherwise its usually 2 or 3 months if they have already done their homework.
But here's the thing, once you put in your offer the seller has to submit that to the bank for them to review, then the bank does their own appraisal or bpo and determines if your offer is good enough for them or their investors. Even though you and the sellers have an agreement the bank can come back and say nope we want 10k more. But then they'll have a date which you have to close by because if you dont their appraisal expires and the sellers have to start the paperwork all over again.
I think short sales can be a good buy and are probably easier to process the paperwork because there is plenty of time to get approved and all of your loan stuff in order vs foreclosures which pressures you into closing within 30 days. Problem with foreclosures now is that there are not that many more around so if you get into contract on one you probably had to outbid a couple offers just to get into contract. And if your getting a loan sometimes the appraisal comes in lower which you have to go back to the sellers and ask for a reduction in price which can take even more time than a short sale. I think if you're lucky enough to get in on a home this summer you're gonna have a decent priced home with a killer interest rate and in a better position than 90% of the homeowners out there. Good luck!
good advice.
one thing regarding the loan, you can usually get pre approvals and the docs ready during the bid submission process but as far as the lending bank actually getting the ball rolling usually no activity happens until after the short sale has been approve at which point youll be in the same expedite mode as a foreclosure and are typically given a very aggressive closing date dictated by an often unrealistic window on when the short sale approval price is valid. the buyer then faces the same pressures on getting the loan, appraisals, inspection, contigencies in order like any escrow transaction.
as stated if you do not close on time for reasons (often times beyond your control) youll need to request for an short sale approval extension and then run the risk of the property going into foreclosure.
jacked up thing with a short sale is due to the huge backlog, banks are very unresponsive, often dont do shit during the waiting period while you patiently wait and then once they finally get to the short sale approval expect the seller to go 100mph to the end. make sure you have a good loan broker who has lots of experience with short sales as they can easily fuck up a short sale by not being able to close on the loan in the time needed. once all that short sale approval crap goes through, the biggest hurdle is getting the loan approval from the bank which could be independent of your application stats but more based on what comes back from the appraisal.
be prepared for a highly stressful and emotional roller coaster ride.
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MKII Q7
89LX
Posts: 4811 | From: dc | Registered: Oct 2002
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69stang
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Member # 5609
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posted
Thanks for all the advice it is very appreciated
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1968 firebird- sold
1992 mustang gt - sold
1969 mustang coupe- current project
Posts: 809 | From: 707 | Registered: Apr 2005
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REDLIGHTING
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Member # 11296
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posted
Worth the wait
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1992 coupe YSI, DART,
225 TFS HIGH PORTS
04 mystichrome convertible
2006 GMC sierra slt crew
Posts: 441 | From: sac | Registered: Sep 2011
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SF Coupe
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Member # 1810
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posted
I tried to buy a short sale. It was a nightmare, not because of the bank but because the owner had liens on the property. He was never able to clear them up so the house could never sell. It's been over a year since I offered on that house and it still hasn't sold. Banks are not the only obstacle when buying a short sale, try to find out what you can about the sellers situation.
I offered on another house, normal transaction, it closed within a month. If it's an investment it's probably worth the wait. I wouldn't do it if it's somewhere you're wanting to move your family to.
Posts: 1082 | From: SF | Registered: Sep 2002
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phonso302
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Member # 9260
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posted
quote:
Originally posted by 915.0gt:
quote:
Originally posted by slow96cobra:
It takes about a month or so while all the paperwork is being processed... I'm actually dealing with one right now
All house sales take a few months, its not a fast process
How did you come up with that answer?
My home took less than a month to close,that included going into contract. Short sales maybe,but regular/forclosed sales normally close fast.
Sf coupe has some good info, my cousin also got into a short sale headache.she fell in love with the house and decided to wait.took her 9 months to finally get it. Person had two loans,liens and god knows what else.
Posts: 1820 | From: PINOLE | Registered: Jun 2009
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69stang
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Member # 5609
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posted
I have met the owner personally so there are no tax leins... I'm hoping it goes by fast the bank is getting are offer on monday
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1968 firebird- sold
1992 mustang gt - sold
1969 mustang coupe- current project
Posts: 809 | From: 707 | Registered: Apr 2005
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93 interceptor
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Member # 9457
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posted
i just purchased my first home thru a short sale. I made an offer back in november 2011 and i didnt hear from the bank till april 2012. It was worth the wait because i got a very good deal on it. I say if you're not in a hurry to buy go for it.
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1993 Ex-chp
" Drive it till da wheels FALL OFF and then SOME!!!
Posts: 146 | From: San Pablo | Registered: Sep 2009
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