How long will it take for my short sale? is one of the most common questions that we receive from homeowners. The time a short sale takes will vary depending on your mortgage(s), who owns your mortgage(s), if you have mortgage insurance, the type of mortgage you have (purchase money, cash out refinance, equity line, 2nd mortgage, etc) or if the buyer walks during the process.
The short sale process starts with a private consultation; during the consultation we will be able to help you determine what the best option for you is and help you understand how long the process will take based on your situation. While every short sale will vary in how long it takes, there is a standard 4-step short sale process regardless of the homeowners situation.
Step 1: Document & House Prep (depends on homeowner)
- compile required short sale paperwork (download checklist)
- create a house pricing strategy
- review condition of property
Step 2: List & Receive Offer on House (0-45 Days)
- list the property
- execute marketing plan & pricing strategy
- submit short sale authorization to bank(s)
- track showings and feedback
- receive offer
Step 3: Bank Short Sale Approval Process (45-90 Days)
- submit offer and complete package to the bank(s)
- execute the short sale follow up plan
- bank(s) complete their own appraisal or BPO (broker price opinion)
- on-going updates from the bank(s) to the homeowner, buyer & brokers
- check on buyers lender approval
- negotiate best terms for the homeowner with the bank(s)
- receive bank(s) approvals
- issue the Final Addendum; final price, closing date & terms for home sale
Step 4: Closing (30-45 Days)
- receive formal loan approval for the buyer
- buyer to complete all inspections
- remove all contingencies
- plan to move 2-3 days prior to close
- sign final paperwork at title company
- close
The short sale process will take about 4 months to complete; we have closed short sales in 2 weeks and others that have taken upwards of a year. The people involved in the process determine the success of your short sale. Know your options, set up your own private short sale consultation today. Contact us.