Short Sales: Time Frame and Approval Questions

By
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.

Call Wendy Rulnick 1-850-650-7883 ext 204

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Wendy Rulnick is the marketing choice for sellers on the Emerald Coast who want to list and get their homes and condos sold in Destin, Sandestin, Bluewater Bay, Santa Rosa Beach, 30-A, Watercolor, Seaside, Rosemary Beach, Seacrest Beach, Kelly Plantation, Regatta Bay, Destiny and more.

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Re-Blogged 1 time:

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  1. Paul Francis 07/10/2010 04:09 PM
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Show All Comments
Ambassador
1,929,094
Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA
Wendy:  Great advice to buyers agents on dealing with short sales.  I have list of questions that I share with agents.  It never ceases to amaze me that they don't understand WHY they should be asking them.
Apr 01, 2008 03:48 PM #4
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

Mike,  Yes, Countrywide ranks up with the rest of them-- although I've had slower!

Chris,  I think that is a good idea to have the list to share.  Except they call you on the phone, so I just spit out the standard responses as nicely as I can.

Apr 01, 2008 04:38 PM #5
Anonymous
Anonymous
Jamie
This whole short sale process has me worried.  We got an offer yesterday and our package was turned in today...I really don't want to lose the offer, we've been trying to sell for 1.5 years :(
Apr 28, 2008 10:47 PM #6
Rainmaker
317,345
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049
Wendy:  I'm currently working on a short sale with Aurora Loan Services.   The most challenging part has been getting the short-sale packet to them.  Hope to get it assigned to a negotitator this week.
Apr 29, 2008 08:16 AM #7
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate
Kathy,  Good luck with Aurora.  I got an approval in 90 days, but the buyer walked.  I now have a substitue buyer, so hopefully that will speed it up!  Keep bugging them.  Wendy
Apr 29, 2008 01:59 PM #8
Rainmaker
239,207
Gene Allen
Resh Realty Group - Virginia Beach, VA
Realtor Hampton Roads Real Estate
Thanks for the good info.  If I need an agent in Destin I will look you up.
Apr 30, 2008 03:14 PM #9
Anonymous
Anonymous
ASC has finally approved my short sale
...it took 4 months however.  The big question is, was it worth it?  Will my credit really be that much better by doing a short sale as opposed to just letting ASC forclose? 
May 02, 2008 09:21 PM #10
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate
Congrats on your sale! Yes, Short sale is better than foreclosure on your credit! Please review my Blog entry Foreclosures, Short Sales & Credit Scores.  Wendy
May 03, 2008 09:34 AM #11
Rainmaker
298,489
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Country wide has been my bread and butter lately. One minute I love them the next they can really drive me nuts. Great advice to customers.
May 03, 2008 07:14 PM #12
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate
Heather-  They are just sooo slow! Wendy
May 04, 2008 10:06 AM #13
Anonymous
Anonymous
Jenny

We are 66 days into our offer for a Countrywide Short Sale.  The sellers realtor was informed today that the case file has been placed in "expedited status".  Can anyone tell me what this means timeframe wise - roughly!  We are on a deadline of needing to close by January 15th.

Dec 10, 2008 05:36 PM #14
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

Jenny - Expedited status may be a term they are using to placate you- I have never heard of it.  66 days is not that far along for Countrywide.  I would recommend the listing agent contact Countrywide every day for a status update and to ensure nothing falls through the cracks.

Dec 10, 2008 06:18 PM #15
Rainer
3,955
Doug Jordan
Pacific Mortgage Group - Honolulu, HI

Great post Wendy- So far Wells Fargo seems, not so bad. And "expedited status", what is that? Is that a backpedaling term to get the Realtor off the phone in a polite way? That one is new to me.

Dec 11, 2008 08:20 AM #16
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

Doug - It must be the new made-up term to keep us from calling! 

Dec 11, 2008 08:57 AM #17
Rainmaker
239,207
Gene Allen
Resh Realty Group - Virginia Beach, VA
Realtor Hampton Roads Real Estate

Expedited means they put it back at the bottom of the in file.

Dec 11, 2008 03:01 PM #18
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

Gene - GOOD ONE!!!

Dec 11, 2008 03:07 PM #20
Anonymous
Anonymous
Sylvia

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

 

 

Jun 13, 2009 04:31 PM #21
Rainmaker
455,160
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
Destin FL Real Estate

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

Jun 14, 2009 10:36 AM #22
Rainer
25,013
Mitch Young
Chartwell Realty - Lee's Summit, MO
ABR,ePRO,CDPE, SFR

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.

Oct 30, 2009 06:46 AM #23
Rainmaker
134,415
Paul Francis
Prudential Americana Group - REALTORS - Las Vegas, NV
Las Vegas Real Estate - Summerlin Homes - 702.592.

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...

Jul 10, 2010 04:06 PM #24
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Rainmaker
455,160

Wendy Rulnick

Destin FL Real Estate
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