There is no concrete answer about how long it takes to process a short sale. It can take as short as a few weeks. It can take as long as a year.
Here is a basic timeline.
Offer is accepted and paperwork is submitted to the bank. The paperwork is the purchase agreement, listing agent mini appraisal, hardship letter, financial statement, listing agreement, 2 months bank statements, 2 pay stubs, and 2 years tax returns.
It usually takes the bank about 1 week to get it into the system.
Week 2 a Broker Price Opinion is scheduled.
Week 4 the Broker Price opinion is back at the bank and in their system.
Week 5 the file is reviewed and subbmitted for an assignment to a negotiator.
Week 6 - the negotiator reviews the file and submits to investor.
Investor has 30 days to review the file
Week 10 - Offer from bank is submitted to listing agent for buyer.
Week - 11 approval letter is received from bank
45 days more to close.
This process is the best case scenario and you ar looking at 4-6 months.
Once an offer is denied or the buyer cancels and the offer goes through again, it usually moves faster.
Patience is needed as a short sale buyer, seller, or realtor. I tell people you get paid to wait by getting a nice home at a low price.
LORI BOWERS
http://www.desertareahousingmarket.com
The Lori Bowers Group
A boutique Real Estate Office, with a full service team to serve all your Real Estate Needs
La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
Old Town La Quinta
La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355
This can be a long process...you have to have patience. We have a Certified Distressed Property Expert who deals with all of our shorts sales.
I lost many deals in 2011 due to patience wearing thin and buyers moving on. One couple even opted out of a smoking deal after waiting 9 yes 9 months for an answer and locked into renting for a year!
This answer is subjective to the lender and servicer.