One thing to remember about a short sale process is that it is anything but short. Often the buyer can get a really good deal. However, patience is required.
If you are considering a short sale purchase, there are a few things to keep in mind:
A preapproval letter is a must. Banks will not even consider your offer, regardless of how much you offer, without a letter stating that you are credit worthy.
Usually, additional paperwork is required, often referred to as the short sale packet.
Have your agent run a list of comparables so you will know that you are not overpaying.
Following is a typical short sale process at the bank:
- Bank acknowledges receipt of the file. This can take anywhere from 4 to 5 days to several months.
- A negotiator is assigned. This can take 30 to 60 days.
- A Broker Price Opinion is ordered. The bank probably will refuse to share the results of the BPO.
- A second negotiator may be assigned. This can take another 30 days.
- The file is sent for review and can take 2 weeks to 30 days.
- The bank may then request that all parties sign an Arm's-Length Affidavit.
- The bank issues a short sale approval letter.
