The Length of a Short Sale
Posted on | June 1, 2009 | No Comments
Short Sales from the outside looking in would seem like a very direct way for a seller and a bank to agree together to sell a property. However, from the inside looking out, it is not that simple. Many bank owned properties are actually owned by other entities and are merely serviced by the bank. That means the bank or Mortgage Company gets to keep the money when you are late but the interest on your loan goes to the investor. If the original investor packages your loan up with a bunch of other loans and sells them to another investor, then it can take some time to trace and find out who really owns your loan. Add to this that a foreign bank could have bought your loan and there is yet another step that takes even longer to figure out and you can understand why it take a few months to figure out if the short sale will work or not.
Right now I have several clients who have waited as much as 5 months to get an answer back from a bank. I know of two others that have waited over 9 months for an answer on their offer to purchase a short sale property. Unfortunately, there is no short term solution for getting answers back any quicker at this time. It takes time a effort to find the owner on every loan so if you decide to make an offer on a short sale, just know it could drag on. On the positive side, I have seen many that come back and close within two to three months but you don’t know going in if yours will be a fast turn around or slow.
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