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 to
the 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 short
sale. 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 short sale 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.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - Beaverton Oregon Real Estate: Why does selling your home on a short sale take so long?
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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That sure takes a lot of the mystery out of it. I like the part where you say they will tell you that they never received the package. LOL I just had a friend working on a short sale that is exactly what happened.
Todd, I'm working on one right now that the seller has moved away, and we are trying to coordinated the documents and the bank keeps asking for more financial info, 1099, W2, pay-stubs, taxes Etc... Well the seller is in the process of packing & unpacking and you guessed it can't find half the stuff. So everything comes to a dead stop until all the requested documents are together. Death by paperwork, is a slow and painful way to go.
Todd,
I think all of us learn from our very first encounter.
Todd, this is a very good explanation of how the process works. We have been involved with a short-sale with Countrywide for almost 1 year now and the process has been pure torture. After 4 appraisals, BPO's, being assigned to a negotiator...I just got a request for another BPO. Thanks for the post.
Todd --- a great post --- great explanation of the process and one that your customer/clients will really appreciate.
Family Feud revisited.
Survey says: "That's the way it's done!"
"That's the most popular answer with 82 of 100 randomly chosen REALTORS and former REALTORS. There is no second place all 18 agents chose different answers!"
Until the NAR stands up on it's hind legs and tells it's members:
The banks need them more than they need the bank.
It's absurd and unethical to list a property with out the ability to close.
Until the lender is required to participate in the listing where the provable proceeds are insufficient to clear title the problem will continue!
Until Buyer's agent convince their buyers to write good offers and demand performance by the seller and his lender this will go on!
Until those agents relise that a good offer is one that is good for the bank!
Until we get over the idea that we're entitled to the bank's money, this will go on!
Until we recall the professionalism that was displaced by arrogance, this will go on.
Bill
Todd, Sounds about right. If handled properly most short sales should close in 90 days or less. The keys to success are:
And if anyone is waiting on a contract before getting info from the seller they have already created a MAJOR delay in the process.
I run into so many agent that think they are "Short Sale" experts and then find out this is the first one they might get to closing.
Constant follow up and then a little more follow up after that. Squeaky wheel gets the grease as they say!