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How long is too long to wait for short sale approval?
Dear Phyllis,
After looking for a home all year, in July, I finally made an offer on a La Crescenta short sale. The seller signed my offer, but I am still waiting for approval from the bank. My Realtor is encouraging me to look at other homes, but I really have my heart set on this one. How long is too long to wait for short sale approval? Tim
Dear Tim,
I have found that each short sale experience is unique. I have buyers who have been waiting for approval on a short sale since May. Some lenders are more efficient than others, so it depends on the lender. Keep in mind the lender will not necessarily approve every short sale submitted; they may counter your price, reject the short sale, or simply keep losing paperwork and never give you an answer. Also, if there is a 2nd or a 3rd mortgage, expect the process to be longer and less likely to be approved.
Although I have closed short sales in as little as 30 days, that is not the norm. I have learned that whatever bank you are working with, a skilled and experienced listing agent is certainly an asset. Your real estate agent should be contacting the seller’s agent weekly for status updates.
There is usually a sequence of events. After the bank has the signed purchase contract and the complete “hardship” package from the owner, the bank will order a Broker’s Price Opinion (BPO, which is a Realtor’s market assessment) and/or an appraisal.
I am glad that your Realtor is suggesting that you keep your options open by looking at other homes; I think that is wise.
