Q&A: How Long to Hear Back on a Short Sale?
Question: I submitted an offer on a listing where the seller needs to get approval of a short sale from their bank(s)…how long will it take to hear back?
Answer: Responses from banks on short sales is typically taking anywhere from 2 weeks to 2 months, with 1+ months being the most typical. Most lenders are so bogged down with short sales that they’re taking 2+ weeks simply to get to processing your offer. At that point they’ll order a BPO (Broker Price Opinion) from local agent(s) and ask the seller to submit proof of financial distress.
Depending on how the offer is structured, a buyer may be able to back out at any time or they may be “stuck” waiting for the approval or rejection for a specified time period or until the proposed date of closing.
The moral of the story is that while short sales are often good deals, there are headaches attached to those deals as well, which makes it important that you discuss all potential options thoroughly.
Comments
Comment from Aaron Dickinson – Edina Realty
Time July 29, 2009 at 9:48 AM
It sounds like progress is being made – it could be days or weeks before you get an answer. Unfortunately information is sparse when working these deals.
Comment from vicki
Time July 25, 2009 at 7:10 AM
I have been waiting almost 4-months on a short sale home to buy. The listing agent told my realtor the first bpo was done. What is going on? thanks