Q -So I just made an offer on a short sale where the seller received a NOD almost 60 days ago. The seller agreed to the terms, so my question is how long do I have to typically wait to see if the seller’s lender disapproves or approves the offer. Their lender is BofA and that is my lender as well does that help the process any.
There is no way of predicting short sale timing.
1.) Is it HAFA pre-approved? With an agreed upon list price? Or was this the list price the agent/seller chose?
2.) Is it one lender or more? Are there other liens? (HOA, garbage, mechanics?)
3.) Is the loan(s) being short sold portfolio loans (owned by initiating bank) or by investors? Was it previously a CountryWide loan?
4.) Is there mortgage insurance attached to the loan?
5.) How does the offer price compare to other neighborhood sales? Will the bank believe the offer price is a fair price based on recent sales or will they counter at a higher price?
6.) How on top-of-it is the agent? Do they call weekly (sometimes more)? Is the file complete? Does the agent provide a weekly update to buyer’s agent?
7.) Did the seller provide all the appropriate paperwork? Are they working well with bank and agent to answer any request in a timely manner?
I have had Bank of America short sales with two loans approved in less than 45 days – non HAFA. With HAFA 60-90 days. (Strange as HAFA was suppose to shorten timelines.).
I would suggest you try to get some word on whether or not the NOD (Notice of Default) has been issued, whether or not the short sale negotiator has actually been assigned, and whether or not the foreclosure process is on hold. The next notice to the seller will be a Notice of Trustee Sale (the actual foreclosure sale at the court house steps). Sometimes banks will not allow this to be postponed until 2 or 3 days before the sale. No rhyme or reason to all that they do but with short sales, anything can happen and the more you prepare yourself for the “speed bumps” that are possible the better you will be able deal with the short sale transaction.