Short Sale Timing for Buyers and Sellers

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Nothing hurts more than to lose your home for any reason – and as we slowly recover from the devastating effects of our housing market crash from a few years ago, many people are still going through distressed situations.

As a seller, if a short sale seems your only option then the whole process can be daunting and intimidating. But with some patience and an eye on the future, people do get through it. As a buyer of a short sale property it can be equally as frustrating because like any other purchase, you want to get in as soon as possible! Here is what you can expect going into a short sale – either as a seller or a buyer – in terms of timing.

Short Sale Process Slowly Improving But Delays Are Still Possible

While no two transactions are the same, we are seeing a bit of change in the short sale circuit. With banks more eager to avoid the costly expenses associated with foreclosures, they are setting up streamlined processes that help to expedite the sale. Still, a typical short sale takes an average of about three months if there is only one bank involved. For those with second or third mortgages or a lien of some kind on the property it can take an average of about six months.

Like anything of this nature, there are things you can do to expedite the process but for the most part since there are so many steps required that involve more than one department, the whole process can really add up in time.

Some homeowners are considering applying for the HAFA program – a government program that gives homeowners alternatives to foreclosure, with benefits such as relocation assistance and the elimination of deficiency judgment risk. For more information about the HAFA program, you can visit their website or meet with our team and we can talk to you about whether HAFA might work for your individual situation. Of course, properties that fall under this program will entail an even further delay of about two more months above the traditional short sale timing.

Another factor that adds time to the number of months a typical short sale is processed in is whether or not the seller is pursuing a bankruptcy. If so, the sale can stall out an additional three to six months on top of the original timing.

Buyers Get Great Deals But Not Without Some Patience

From the perspective of a buyer, there is no question that a short sale is a great way to get a good deal. This is especially true these days when you combine that with historic low interest rates. But all this definitely comes at a price. The single biggest frustration for buyers of short sale homes is the constant uncertainty of how long it will take.

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We have done hundreds of short sales and experienced many different situations. If you have considered a short sale or would like to explore your options, I invite you to contact us today. We will gladly help you look at all the possibilities. And if you know of someone that would benefit from our help, please do not hesitate to share our information with them! We look forward to serving you.