In case anyone has missed previous posts a short sale is when a bank works with an owner to take less than a property is worth. In other words they are going to take a loss on the property. Today I wanted to cover how long a short sale takes to get approval from the bank. Now each bank is different but in general most have a very similar process.
Before a bank can even begin their process they must have certain items from the owner and the real estate agent that they are working with. I am going to list just a few that are required by all banks.
Required documents
- Fully executed offer - In order to begin the process you must have an offer from a buyer who is willing to buy your property. Most banks require that the buyer not be a relative.
- Hardship Letter - Why you felt behind. We will write a post on what should be included in a hardship letter.
- Financial form - Each bank tends to have their own form that they want filled out.
- Authorization form - if your agent is calling them, and they should, they need permission to speak with the bank.
The approval process begins once these required items are received by the bank. It can take at least 3 days for a bank to get the items via fax. They can take between 4-8 weeks if the bank is moving quickly on their approval process. At the end of the 4-8 weeks they may or may not need additional information from you or your agent. This process can be sped up by regular checkups with your bank rep once it gets assigned.
At the end of 4-8 weeks the bank will do one of three different things.
- Accept the offer
- Counter the offer with a different price
- Reject the offer completely
Most banks are doing one of the first two items. This process will be repeated if there is a first and a second loan.
0 comments:
Post a Comment