What is time consuming about the short sale process

Question

I understand that a lot of investors don't want to deal with short sales due to the time & hassle involved. I know that banks take a long time to respond. That said, what else in the process causes a significant amount of personal time to be spent?

Thanks

Xing Zhu · Answer

As a buyer, you just have to wait. The list agent may spend more energy talking to the bank. If a short sale works out OK, it can be a real great deal for the buyer.

Simon Campbell · Answer

The primary reason short sales take so long is because lenders drag their feet in deciding to accept or counter the offer. If there are second or third liens, then they must get approval from those accounts as well - and all of this takes time.

Short sales generally take between 3 to 6 months to close. Additionally, they have a very large failure rate. This means that you could wait 2 months for bank approval on your offer and then they finally get around to telling you that the offer is way too low.

Some investors are just unwilling to sit and wait on an offer while other attractive deals pass right in front of them.

Jennifer Lee · Answer

hi

I'm listing a short sale.

I think its just the process that takes a long time and too many undetermined factor.

I think if you have a price in mind and have no time frame, it shouldn't be too much of an issue.  If you don't know condition. Assume the worst, get as much due diligence you can.

Their are some hoops to jump over and human factor, but if seller and bank is motivated I don't see why it should take forever.

My issue is the house, we need a buyer first. And that is my biggest problem.