How long will my short sale take?

The answer to this question is very similar to most answers when it comes to short sales… it depends on who the lenders are that own your loan(s).  Many of my clients in San Diego want to time a short sale to close in a certain month so they can coordinate with their desired move date.  In order to do that it’s important to understand the general timeline for how long a short sale process should take.  Below is a general timeline, broken down into three phases, that should help you plan accordingly.

Short Sale Process Timeline

  1. Marketing/Offer phase: Right now in San Diego (September 2012) property is selling VERY quickly. It may only take a week or two to receive multiple market price offers on property.  Property between $100k and $550k you can expect to sell faster than property priced $600k+.  On average though, regardless of price range, we are selling homes in 2 weeks.

  2. Negotiating/Approval Phase: Generally speaking, if there is only one loan or lender involved you should expect to get an approval on the short sale within 60 days of submitting the FULL short sale package (offer included).  During this phase the bank processes the paperwork, get’s their appraisal on the property, and submits the file for a decision to management or the investor that owns your loan.  If there are numerous liens on your property with different lenders, you may expect this period to take 60-90 days.

  3. Escrow Period:  Once the short sale is approved and we receive the official approval letter from your lender(s) we can open up escrow and prepare to close.  This period will typically take about 30 days.  It can be sooner (14 days)  if it’s a cash offer or possibly longer (45 days) if the buyer is getting an FHA or VA loan.  It mostly depends on the type of financing the buyer is getting.  Again, 30 days is most common though.

If you add this up a short sale should take anywhere from 3.5 to 4.5 months.  The biggest factor is which Realtor you hire to sell and negotiate your short sale.  The second biggest will be which bank(s) own your loan(s)  To get a more accurate timeline on how long your short sale will take feel free to give me a call for a free consultation and I can go through very accurately how long your lender takes to approve short sales and what you can expect.

Brian Ruhl
The Ruhl Team
**Over 500 Short Sales Sold…**
REALTOR/Short Sales, HAFA Certified
www.SanDiegoHopeNow.com / www.TheRuhlTeam.com
3636 Nobel Drive Suite 170, San Diego CA 92122
Cell: 619.228.6200
Lic# 01493664 / San Diego Real Estate and Investments

Category : Articles

No comments yet.

Leave a comment