Short Sales Can Take a Long Time to Close
Posted on | June 19, 2009 | No Comments
So I’m talking to a Realtor last week who tells me about a client that wants to purchase a short sale property because they need something quick. They did not understand the nature of a short sale because, most of the time, they are anything but quick! In fact I have been working with several borrowers for so long now on short sales that the recent rate increase has reduced the amount of home they qualify for. How long you may ask; six and eight months!
Most banks and mortgage companies do not actually “own” the loan, they simply service it. This means they have to go back to the owner or investor and make the deal through them. This takes time as sometimes the owners are in other countries. On top of this you have second loans associated with properties that have to be in the mix as well and many people who extended second are loosing a lot of money right now as well so they aren’t really thrilled about loosing any more. Add the shear amount of homes that are seeking to go through the process and it simply boils down to time.
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