Short Sale Time Frame
Our market will see more and more short sales in the coming months. Again, a short sale is when the owner of a property has a higher mortgage balance than the mortgage payoff, and sells for market value. Banks will sometimes forgive the rest of the debt in order to facilitate the sale if the seller has a hardship and cannot meet his obligation. This is a better option than foreclosure. As more of these properties flood our market, the backlog for lenders processing approvals has grown. Banks I have spoken with may have up to 400 files in process per "negotiator". So, if you make an offer on a short sale property, be prepared to wait for a response. Countrywide's average response time is now 43 days. They are hiring more people, but not fast enough to keep up with demand. Time your offer for a 60-day closing, but it is not unrealistic to assume it could be 90 days, or more.
Labels: countrywide, pre-foreclosures destin, pre-foreclosures emerald coast, short sales, short sales destin
posted by Wendy Rulnick at
12:27 PM
11 Comments:
Hi Wendy.
I am in a process of buying a Short Sale property and the primary lender is Countrywide and I have put in the offer (my offer is the only when that went in). How long should I expect to wait for the contract ratification? Any ideas? The whole Short Sale process for this property started around Jan 1, 2008. Thanks for your insight on this.
Maureen, I am finding the current response time for a counteroffer about 75 days... The contract should have already been signed by the seller- just contingent on Countrywide's approval.
Mateen, Sorry for the misspelling! Wendy
Thank you Wendy. That is exactly the case, the contract is only pending CW approval. Are you saying that it will take another 75days or did you mean the total time for the whole process to be 75 days. The Short Sale negotiator who is working with the Countrywide on this says that it may take another 2 weeks. That makes it 3 weeks from the time when we sent in the counter offer {which was based on feedback from the bank}.
Mateen, You are ahead of the game if they got back to you already with a counteroffer! I am finding the current response time for initial counter offer to be around 60-75 days, so I recommend most buyers use a 90-day total time period, from offer to closing. I think two more weeks sounds reasonable. If I were the listing agent working on this, I would contact the negotiator by phone or email about every three days. They are overwhelmed and sometimes "forget" to call the agent with news. Best of luck!
Thanks again Wendy,
Yeah I am quite ahead in the process and they actually wanted to close in March so I gave them a settlement date of the 25th. Hope to make.
Thanks again & have a great day.
We are considering a Short Sale but the realtor told us that it will cost us 50 points on our Credit rating and for 8 months. We have some equity in our home but not enough to place it on the market with a realtor. WE are not in default and nowher near forclosure, our payments are high and the first mortgage is about to increase by 3%. We are working with our lender to keep it at the same rate untill we sell, still waiting to hear from them.
I dont' want my credit affected, should we go ahead or wait and try and sell on our own. We have a past bancruptcy already on file, medical reason.
This post has been removed by the author.
There is no way to get around a Short Sale affecting your credit. It may be up to 100 points, but could be more depending on payments associated with the mortgage. Your best approach is a loan modification, or new loan with a different lender. Also, your chances of selling are greater listed with a Realtor, and for more money. Why? Increased market exposure.
Hi, I just saw your blog and I'm curious to know if anyone can inform me. I have put an offer in for a short sale back on march 12th. It is officially May 13th, thus making it day 57.
The seller I am buying the house from had two loans from countrywide. Both those loan departments have now approved our offer. We were told today that now our case got sent to a final guy in countrywide to do something...
This is where I am lost. I thought once the loan departments approve our offer, countrywide just has to send the paper work? Is this correct? Can anyone tell me what the process is at countrywide? Thanks.
Hi Gloria,
I may have responded to you in another blog. Two months is not that long to wait for response from a bank for a short sale. Normally it takes 90 days, so you are way ahead of the game. Once your offer is approved it may take a week or so to get the paperwork. I don't think you have anything to worry about. Congratulations! Wendy
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