Philadelphia Short Sales: How Long Will A Short Sale Take?
Philadelphia Short Sales: That is the question of the year ! It is a great question ! It is one that every Buyer, Seller, and Realtor ask when dealing with Philadelphia Short Sales. The simple answer is, " Your guess is as good as mine !" The more appropriate answer is, " It depends on the bank." Not that either response is a good answer !
Chris and I are self proclaimed Short Sale Specialists in Philadelphia. We have had a lot of Short Sale Success in Philadelphia. It is not that Philly has a sinking Real Estate Market. In fact just the opposite is true. We are simply Ready, Willing, and Able to do the work that is needed for a Philadelphia Short Sale. (Low commissions and lots of work are not popular in our industry.)
Yesterday I was on the phone with Bank of America to discuss one of our pending short sales. They have a 3 Phase process that I like for educational purposes that we will elaborate on to help answer this elusive question. I am certainly not thrilled with the length of time it takes for the process. Their 3 Phase process can explain in a general way, what goes on behind closed doors at most banks and explains why it can take 1 month or 6 months for a short sale to occur !
Phase 0 - The 100% complete Short Sale Package is submitted, digitally recorded and awaits assignment. This takes 24hrs to 12 days as long as it was received by the right department and every document was submitted and received. (Note - it is imperative not to submit an incomplete short sale package - a definite way to lose time ! )
Phase 1 - A negotiator is officially assigned to review the package, make sure all documents are there, order the BPO (BPO is like an appraisal). This Phase can take from 25-45 days depending on the bank, their staff, and their work load... and dare I say the quality/integrity of the bank's management. See featured post regarding my Short Sale NIGHTMARE with TD Bank ! .
Phase 2- Here a new representative might be assigned. This phase is where changes on the preliminary HUD-1 are made. (HUD-1 is a form that lists all of the money and charges to the seller.) The BPO is reviewed, and they determine if a counter needs to made, then the package is sent to the investor (the ones who own the money) for their review. 25-45 days !
Phase 3 - Once the investor is satisfied, it is possible that yet another person will get assigned to the file. But good news is that the closing negotiations commence. This is when the bank tells you their verdict... Yes, No, Counter Offer, or Yes BUT you need to sign a Note for the deficit. Phase 3 is when the final settlement procedures are communicated to the Realtor. At this stage a closing can be scheduled within a few days from acceptance.
We have had Philadelphia Short Sales accepted in 30 days. We have had Philadelphia Short Sales accepted in 6 months. But the typical Short Sale is approximately 90 days for us.
If you are involved with a Short Sale, you have to be patient and flexible. As a Realtor on the Sell Side... there is plenty of paper work and follow up with the bank throughout the process. Very little information is communicated during the entire process but much work is being done behind the scene by the Bank and the Listing Agent.
I hope this info on Philadelphia Short Sales helps buyers and sellers answer some of their questions about the process. If you find the information informative, please subscribe to our blog ! Is only a click away ! If you are in our neck of the woods, please contact us via phone or email or ask about our new office location in Northern Liberties !
If interested in buying or selling properties in Philadelphia, contact Chris and Stephanie Somers at email@example.com or 215-400-2612 . You can connect with us on Facebook and Twitter . For investment properties, check out our new investor site at Philly Investor Hub and ask us about Philadelphia Foreclosures and Short Sales .
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Areas of specialty include Northern Liberties, Old City, Center City, Fishtown, Graduate Hospital, Art Museum, Queen Village, Pennsport, Old Kensington, Port Richmond, Bridesburg, Society Hill, Loft District, Spring Garden and more !