One of the most commonly asked questions about short sales is; How long will it take to buy a short sale? A short sale can and most of the time does take longer to close escrow than a standard sale does. There are several factors that will effect the timing of the time it takes to purchase a short sale.
If a home is listed as a short sale with an agent that does not know how to complete a short sale successfully there can be bigger delays. There are several things as a buyer’s agent I can do to give you an idea of what to expect or if a property is even worth pursuing.
Many of the properties in Central Oregon listed as a Short Sale were originally financed with 2 loans to give the seller 100% financing. When this is the case there are 2 lenders that must agree to the terms and price of a short sale offer. The first lender which holds a mortgage for usually 80% of the purchase price is generally the first to respond to a short sale offer, they generally will agree to pay the second a very small percentage of what is owed to the second mortgage.
Some of the banks have created a streamline process to handle short sales and these banks are generally very easy to work with. Other banks are not yet so organized and a response time can be a long and frustrating period. Knowing which banks we are dealing with ahead of time can give us an idea of what to expect in a short sale. Having an agent that is a CDPE (Certified Distressed Property Expert) can also help save some frustration, as one of my jobs as a CDPE and a buyer’s agent is to quiz the listing agent of the readiness of their listing to have an offer.
Many of the steps to a successful short sale can and should be done long before an offer comes in. To successfully purchase or sell a home in short sale, give me a call or drop me a quick email.