Short sales closing

4 Replies

I was wondering if anyone could tell me why it takes a such a long time to close on a short sale?

Originally posted by @Natassha Brown :

I was wondering if anyone could tell me why it takes a such a long time to close on a short sale?

 Its all about the bank aka mortgagee bka lienholder purposefully delaying the sale(yet to be fair banks tend to work slow on REOs also except for this time of year, the 4th quarter) because the homeowner aka mortgagor is coming up 'short' on their mortgage that they promised to pay back in full. Doesn't matter what the homeowner accepts and wants the bank has the final say. That on top of there being several people involved from the seller, the realtor, the investor, the bank attorneys, etc. Its definitely a clock killer.  Me not being a woman of patience tend to shy away from short-sales because of this. All the more for you. ;-)

Kudos,

Mary 

Thanks for the info Mary I'm not typically one for waiting myself but its seems lucrative so I'll have to learn to be patient.

Each negotiator at the bank is overloaded with files.  IT takes them a week to do everything.  Then you have to call and find out if they are missing documents on a regular basis to prevent delays.  Then it takes days to get those documents.  Then they have to re-review.  Then they hire a BPO, takes a week to come out .. week to do the BPO .. week for them to review..  goes on and on ..

Phil Z., Real Estate Agent in Connecticut (#REB.0789205)
203-936-7776

Thanks Phil sounds like a lot of red tape to get through

Join the Largest Real Estate Investing Community

Basic membership is free, forever.