Short sales can take anywhere from 2 months to 9 months. Below is the timeframe that we strive to reach. Time frames will be adjusted depending upon who your lender is, but use this as a rule of thumb:

 

Day 1:   We sign the listing agreement with you, and list your property on MLS above Market Value. (We need to prove to the lender that we are doing the best we can to minimize their loss. Typically we will not get an offer the first two weeks.) Lockbox will be placed on your home for showing purposes.

 

Day 15:   We lower your asking price to fair market value. Generally this will be a 10% decrease in the original asking price. At this point your home will probably be shown by realtors.

 

Day 30:   If we do not have an offer on the property we will continue to lower the price by 3-5% every 10 days. Again, this is to prove to the lender we are doing the best we can to minimize their loss. Typically we will have an offer in by day 30.

 

Day 35:   Full Short Sale Package is submitted to the lender with an offer. The lender will then take the file and assign it to a negotiator. This can take anywhere from 48 hours to 30 days depending upon your lender.

 

Day 45:   Usually we are assigned to a negotiator by this time and begin the negotiation process of the sale with the bank. We are representing you and will handle all communications with the bank on your behalf.

 

Day 60:   Bank will respond to the offer and typically counter or accept. During this time they are also signing off on what price they will accept. Meanwhile we try to maintain back-up offers for your property so that once we get the price the Bank wants, we can submit the highest and best offer to meet their requirements if the first offer backs out. 30-day Escrow begins.

 

Day 90:   Escrow closes. Short Sale is completed.

 

 

***Lenders will perform a BPO (Broker Price Opinion) on your property and at times they may also require an appraisal to be done. Sometimes it can take them two weeks to determine the value. We often assist by providing a list of all comparable sales in your area.

 

***Do not be worried or alarmed if the Short Sale is not completed in 90 days. Due to the volume of Short Sales, Foreclosures, and Modifications banks are backed up. If a short sale is not completed by 6 months it does not mean the Bank will automatically foreclose on you. Banks do not want to go through the foreclosure process. It costs them more time and more fees. In addition to their loss on real estate they will also be subject to attorney or court costs associated with the foreclosure process which can be significant at times. Thus, a Short Sale is a viable option for any Bank!