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.
