How Long Should A Short Sale Take?
October 20, 2016
Banks may take days, weeks or months to approve a short sale. To minimize frustration, buyers of short sale properties can conduct due diligence to make certain that their offers are reasonable. They may also want to understand the process of short sales approval so that they have a better idea of what to expect. A Nevada real estate attorney may help his or her clients with researching the comparables, submitting offers and negotiating the provisions of any proposed sales contracts.
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Conducting Due Diligence
Banks may receive multiple offers for a short sale property. If there is a lot of competition, a prospective buyer will need to take that into account when he or she makes his or her offer. Buyers should begin by researching the comparable prices for similar properties that are located in the same area. An offer should be close to the comparables in order to increase the likelihood of approval.
Buyers may also want to research the records of the listing agents. Listing agents that do not have significant experience with closing short sales may not be able to gain approval for short sale offers. Buyers should also ask how many offers have been submitted for the properties, how many loans are secured by the homes and whether or not the seller’s package is complete.
The Typical Short Sale Approval Process
The turnaround time for short sale approvals may range from days to weeks. Some banks are slowed by receiving many short sale submissions at the same time. Short sale approvals generally follow similar processes, however, which begin when the bank receives both a complete package from the seller and a written offer from the prospective buyer. The bank should send an acknowledgment of its receipt within 10-30 days.
Next, the bank will order an appraisal, which could take anywhere from two weeks to two months. After receiving the appraisal, the bank will next conduct a file review, which may take 10 business days. Assigning a negotiator may take 10 more business days. Finally, the offer will be approved or rejected. A real estate attorney can help his or her client throughout the process.