Once an offer is received and signed, I send it to the bank, along with the seller’s short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.
Can a mortgage lender accept a short sale?
A lender might accept a short sale with the property worth less than the balance of the mortgage, if the borrower cannot continue to make the monthly loan payment, does not have enough money to pay back the full balance of loan and needs to move out of the property. Is the mortgage lender’s approval necessary in a short sale?
What do you need to know about a short sale?
All information regarding the seller’s finances and the home’s value will need to be gathered and presented to the lender along with other items in a packet, as well as having a prospective buyer. A short sale means that the lender has agreed to sell the property for less than the outstanding mortgage balance against it.
How long does it take to close a short sale?
The short sale process may take more time than a traditional retail sale to complete and it may be difficult to pin down a firm closing date until the seller’s mortgage lender (s) agrees to the short sale. Junior-lien holders such as second mortgages, HELOC lenders and other special assessment liens may also need to approve the short sale.
How does a listing agent do a short sale?
After the seller accepts the offer, the listing agent will send the listing agreement, the executed purchase offer, the buyer’s preapproval letter, a copy of the earnest money check, and proof of funds to the bank. They’ll also submit the seller’s short sale package. The short sale process will be delayed if the package is incomplete.
