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Short sales

Posted by mostone (My Page) on
Sat, Mar 8, 14 at 17:30

We are contemplating purchasing an investment property that is a short sale. We're curious about how long, on average, these deals take to close. I have done a search here, but most of the discussions happened a few years ago. Have things improved at all? Also, what can we do to help expedite the process?

Follow-Up Postings:

RE: Short sales

I think it really depends on the state you are in. Florida and some of the southern states are able to get these closed in 2 months. In my part of NY, it still takes 6 months or longer. I've stopped doing them. I figure three tries is enough. First one took 13 months, then the owner filed bankruptcy, (that blows up the short sale), next two, both had offers, one was full price at the bank BPO price with a 20% down buyer and both owners, did a deed in lieu. Too many disappointed buyers, too much a time waster for me.

RE: Short sales

Many times a house will be listed as a short sale before bank approval. This is due to many banks not even considering a short sale unless the house is under contract to sell. The seller must meet the requirements for a short sale, and the bank and other lien holders must be satisfied with the selling cost.

I once made an offer on such a house that was accepted. Four months later the bank had not approved the sale and I requested (and received) a release from contract. The house is still listed for sale 9 months later. So when contemplating a short sale it is better to consider one that is already bank approved.

RE: Short sales

Shortest for me is 6 weeks and longest is 9 months and regardless of how little information to get from the seller/investor you better be ready to close when they all of the sudden say "We are ready to close next week"!!!
It is a hurry up and wait game and not for the impatient buyer.

RE: Short sales

We finally closed on our house 11 months ago. It was a short sale and took 18 (almost 19) months. We are in SC.

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