Q&A: How Long to Hear Back on a Short Sale?
31 March 2008 by Aaron Dickinson - Edina Realty
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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.
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