Question: when buying a short sale home how long does it take to close?
Answer: – If you are the end buyer, the time it takes to close varies depending on how ready you are. It can take 3 days to 60 days depending on where you get financing and what they require. The transaction is the same as any other residential home. Typically with short sales, you’re just getting a better deal. You should be able to close within 30 days which is usually what the banks require once the short sale as been approved.
we have been waiting on sellers bank to sign off for 3 months now with no end in sight. The seller has signed off and has vacated the house and yet the bank has not signed off. Our lender is just waiting on a signed contract to get going and has all of our info. Can this really last as long as the sellers bank takes?
Yes, be prepared for a long wait. I had one that lasted 6 months. They are very slow right now because of all the inventory and all the negotiators are swamped. In most cases they will postpone the auction if they have to so it gives you more time. Unfortunately you are at their mercy. Keep calling and try to stay positive.
The process has taken about 6 months for my husband and I as well. We are all set to go, and are still waiting on the bank.
to whom it may concern: why do banks do homeowners so bad when times gets hard. we’re up side down with our home. we put our life savings down on the home i don’t understand why they do short sales. they are giving the home away for a little price i think there should be a change in how they work and treat home owners. give us a chance in life and work out something with us because we are upside down it is not our fault that the value dropped. when they do a short sale they lose more instead of working with us i really loved my home with all my heart. please some one help home owners.ps.
Tiffany,
They do short sales because they are looking out for their best interest. They may lose more money by sending through foreclosure. And if no one bids, thats just another property they have on their books that they don’t want. If you are in a situation like this, why not try to do a Loan Modification and stay in your home. This is where your lender will “work” with you to keep you in your home. You may want to do your research and check it out as long as your home hasn’t been auctioned off.
I am a buyer, who was not aware that I was getting into a short sale until after we had a contract, and did the inspection. Now they are telling us it’s a short sale and we might not be in by our April 2 closing….we rent an apartment and will have to go month by month if this thing drags out, which includes a processing fee from our landlord…do we have any negotiating power to have some of these new expenses covered?
Unfortunately there is not much you can do. Right now short sales are taking a very long time. You just want to make sure you’ve sent the lender EVERYTHING they’ve asked for so it doesn’t get drug out any longer than necessary.