13 September 2010
How long is it taking for banks to approve a short sale?
Posted by admin under: Renting & Real Estate .
I made an offer on a short sale property. The house has a 1st and 2nd mortgage and is located in California. Banks are Bank of America and Washington Mutual.
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3 Comments so far...
The CPA Guy Says:
14 September 2010 at 10:20 am.
Typically, I’ve heard that it takes about 2 business days.
Mike N Says:
16 September 2010 at 12:48 am.
Short sales transaction to be fully completed takes anywhere between 3-5 months. You just placed an offer and if you lowballed the offer, they will come back and counter offer you. Then you do a counter on their counter offer. It is a cat and mouse game they play to get the most out from a good buyer. So if the deal is GREAT and for them you are a good buyer they will counter offer you in 2-3 weeks. Remember the whole thing will take more than 3 months.
Good luck
Big daddy Says:
18 September 2010 at 8:27 pm.
There are a few factors here that need consideration. 1. Did you make a solid offer or did you try to lowball the offer. 2. volume at both lenders. If both lenders are backed up, it could take 30 days just for the offer to be reviewed. I have heard stories that second lien holders are so backed up, they don’t even get assigned to a negotiator for 60 days. 3. Who is the investor, this is the most critical of the questions for you right now. For example, you stated that bank of america is the 1st mortgage holder, but who owns the loan? Bank of America could own it, Freddie or Fannie could own it or a private investor could own it. This is critical as each investor (owner) has their own set of guidelines that need to be adhered to when negotiating a short sale. The situation is the same with the second, remember, Chase took over Wamu so who knows who’s servicing and who owns that lien. 4. What type of financing do you have? Are you getting a mortgage or is this a cash offer.. If your getting a mortgage, here’s the scenario, bofa has to approve the deal, wamu/chase has to approve the deal and then your lender has to approve the deal, your probably looking at 4-6 months for approval. If its a cash deal 2-4 months, depending on the investors and their guidelines.