Quote:
Originally Posted by Lacerta
In my experience, 90 days is a fast response on a short sale from a large bank. We have one in the office that is currently at 7 months with no response yet.
I think one of the biggest reasons it takes so long is simply that the processors at big banks are completely overwhelmed. On a recent BofA short sale, we were told that their processors EACH have between 500 and 1000 files on their desk at any given time. No one can keep up with that.
On the other end of that, as Silverfall mentioned, local banks have been known to give responses within 24 hours in some cases. We even had one that we had a buyer offer on a Sunday afternoon and by Monday morning we had a response. It was a little eerie.
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Aside from the backlog/throughput issue, I think there are just a number of additional steps in the process. You have the sellers having to prove hardship, the lender having to get BPO's, the seller & lender having to work out whatever contract between them for the deficiency, etc. Who knows what else.
We are 7 weeks in on our offer on a short sale. 7 weeks since the seller accepted and submitted it to their bank. We just got the word that we may have a done deal within a week. We knew going in that it would take a lot longer, but still the anticipation can get to be a drag. However we can't move til school's out, so for us, it works out better the longer it takes (up to a point of course).
Our realtor seems very good with short sales & distressed property in general. She had in our contract that the seller could not submit any other offers to the bank while they were working ours. In exchange we placed the earnest into escrow. After 60 days we have the option of canceling. This kept us from making other offers or walking away, but it also kept us from having to worry about competing offers or a bidding war. We have continued to look at other properties of course, just in case this falls through.
Seems like it has worked out well so far.
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