What is the Average Length of Time for a Short Sale?
We handle short sale files day in and day out. We keep an eye on any trends or changes on how banks/servicers handle short sales from week to week. At the present time we are receiving most short sale approvals 60 to 90 days after submitting the short sale package. This is a change from just 3 months ago when the files were averaging 45 – 60 days. There are a few banks/servicers that are taking longer still but the major banks/servicers are all taking about the same amount of time to complete the short sale process. Once the approval has been given the bank/servicer will expect the buyer to close within approximately 30 days. The entire process, therefore, takes about 90-120 days total.
The primary factor that determines the success and the length of time it takes is how knowledgeable and thorough the person submitting the short sale is: Is the package complete and perfect when submitted? Is it a “market price” offer? Did the appraisal come it too high? Did you respond quickly and politely to the negotiators request? Did you follow up on a regular basis and escalate the file when necessary? Did you properly address the deficiencies in a timely manner?
There is no right to a short sale. This is a process that the seller must go through in order to get an approval. There are many different steps to a short sale and usually with a great deal of hard negotiating to do. The more professional, polite and experienced the person handling the short sale the faster and better results they will have.