This is one of the questions I get a lot from both buyers and sellers of properties that are in a short sale situation, but one thing I can tell you is it has nothing to do really with the buyer or the seller.
What happens when a listing is taken by an agent that is going to be in a short sale situation has a lot to do with how long the process will take. If that agent gets all the paperwork up front from the seller, submits it to the bank right away, and gets on the property getting a BPO done, it can save lots of time, but that still doesn’t mean it will be a short process.
It really has everything to do with the bank and their procedures. Once a bank receives a short sale package, (which I can tell you from experience they will claim they don’t get despite sending confirmations of receiving it) it goes tothe loss mitigation department, but all they do is make sure all the paperwork is in from the seller. (They don’t call the seller… that is the agent’s job.) Each person in this department may be working more than 100 files at a time, and unless and agent keeps on them, that file will stay at the bottom of the pile. The squeaky wheel gets the grease.
Once the file has everything that is needed, then it gets assigned to a negotiator. That process can take a couple weeks. There never is an overnight thing with banks. Then the negotiator will decided if the property and the seller even qualify for a short sale based on the information gathered by the loss mitigation department. If the BPO and the financials all meet the negotiators criteria, then they will order an appraisal of the property, and once again, this can take 10-15 days.
After the appraisal is done,the packet is finally given the yes or no to if they are going to allow a shortsale. Then, they finally advise everybody of what they will accept and what they will pay and it rarely is everything the buyer is asking for. Then you have to submit a counter offer to the buyer and get that back to the bank. Then the negotiator may take another week to look at that and finally give approval to close.
As you can see the process at the banks is flawed, but right now it is the only one we have to work with. Some banks are better than others. But in the end, if you qualify for a short sale, and have the patience to deal with the banks,then selling one can be better for your credit in the long run rather than a foreclosure. If you’re buying a short sale, if you can be patient, the prices are usually discounted enough to make the wait well worth it.
For more information on selling your home on a short sale in Beaverton, Oregon, please give me a call, I would love to help. If you are a buyer, I can help you look at hundreds of shortsale homes that are available. Heck, I’ll even buy you a coffee so you can sit back and relax waiting for your new home at a great price.
Respect Realty LLC (Expect More)
At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction. We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.
Reach out today, we look forward to talking with you!
Todd Clark and Seraina Aguayo (Owners of Respect Realty)
Respect Realty LLC (Expect More)
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