Short Sales: Time Frame and Approval Questions

Real Estate Broker Owner with Rulnick Realty, Inc.

I get phone calls almost daily from agents in my market asking how long the short sale lender will take to respond, if they have approved the price, and how "far along" in the process the short sale is.  Here are the answers:

1.  How long will the lender take?  Use a 90 day closing in your contract- for starters.  Depending on the lender backlog, your closing may take as long as four months, if approved. The last closing I had with ASC, for example, was submitted as a complete package on December 7, 2007.  It closed on March 27, 2008.  That is almost four months.  Currently, most lenders are taking 30 (if you are lucky) to 75 days to order an appraisal on the property.

2. Has the lender approved the price?  It depends on the lender.  Many of the bigger lenders do not pre-approve a price, for example-- Countrywide, Wells Fargo, Chase, Aurora, Suntrust, Regions, Saxon, ASC, etc.  However, a few do-- Citi Residential, Fremont.  So, most of the time, the answer is "no", the list price is not "pre-approved".  Most lenders will look at the price at the time an offer is submitted, and order an appraisal or BPO (Broker Price Opinion) at that time.

3. How far along is property in the short sale process?  See number 2, above.  Most lenders take no action on the file until a complete short sale package, with offer, is submitted.  Yes, Citi Residential and Fremont are ahead of the game, but if there is a second mortgage involved, add that to your scenario.

Feel free to comment on the lenders you have worked with.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.

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Specializing in real estate sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.  We sell residential homes, condos, townhouses, lots, new construction, short sales, foreclosures and investment properties. Call toll-free  1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Short Sales:  Time Frame and Approval Questions* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.


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Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

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Rulnick Realty



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  1. Paul Francis 07/10/2010 04:09 PM
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Comments 23 New Comment

Wendy Rulnick
Destin FL Real Estate
Rulnick Realty, Inc.

Gene - GOOD ONE!!!

December 11, 2008 03:07 PM
Anonymous #21

Can my realtor or myself contact the lender of the short sale? My realtor told me no!



June 13, 2009 04:31 PM
Wendy Rulnick
Destin FL Real Estate
Rulnick Realty, Inc.

Sylvia- Only the authorized party - since loan information is confidential information to the seller.

June 14, 2009 10:36 AM
Mitch Young
Chartwell Realty

Wendy, the most frustrating part of the short sale process to me is the buyer agents who assume things will happen in a traditional manner with a 30 close. I always explane the timelines before they write them up, but some just don't get it. I am having my broker draft up an acknowledgment for the buyers agent and buyer to sign stating the timeframes involved. If their clients need to be in a home quicker, then a short sale might not be for them.

October 30, 2009 06:46 AM
Paul Francis
Las Vegas Real Estate - Summerlin Homes - 702.592.
Prudential Americana Group - REALTORS

Wish I would have not missed this one two years ago... I would have happily forwarded it to the multiple agents that call me with the same questions...

I think I'll send it over to the buyers agent who really believed what they read from a B of A PR campaign that they would have an answer in 45 to 60 days... Lots of laughing...

July 10, 2010 04:06 PM

Wendy Rulnick

Destin FL Real Estate
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Author Bio: Wendy Rulnick, Rulnick Realty, Real Estate Broker in Destin Florida and all surrounding towns

The market. Smart sellers. The Emerald Coast of Florida. stLight.options({publisher:'38725d03-3cc6-42e6-bcc5-9e8126fcc3e0'});