One of the questions people have been asking me most recently is “How long does a Short Sale Take?” They say “Well I’ve talked to neighbors, I’ve talked to friends, I’ve seen the properties in my neighborhood that take 6 months, 9 months, even up to a year, some cases a couple of years.” So, they want a definitive answer in regards to how long a Short Sale takes.
Well, first off I am going to say, it depends on everybody’s circumstance and scenario. It depends on who your bank is, who your lender is, who your investor is, and depends if you’re going on HAFA or not HAFA. All of those variables contribute, whether you have 1 loan or 2 loans. So, it is different for everybody. I will say in my office, the average time frame is 3 to 4 months. Most notably, some lenders will take a little bit more time, especially if you’re going through the HAFA process. But on average, the time frame that we list your property, to the time that you are moving out, is about 3 to 4 months.
Now, that doesn’t mean I haven’t had properties that have taken longer, but typically there is a very certain circumstance in regards to that happening. Maybe we had a few problems, a buyer fell out, or we were dealing with some difficulties with the Investor or the Mortgage insurance company. But other that, do understand, that according to the National Association of Realtors (NAR), about 25% of Short Sales are successful, and from there, they are saying that most Real Estate Agents are averaging a 9 to 10 month time frame. That simply comes down to a couple of variables. Possibly the Listing Agent doesn’t have a lot of experience on how to structure a Short Sale, or how to work with the banks. Thus, the process takes longer and longer and longer. Many times when that happens and the Listing Agent is not experienced with Short Sales, they take too long on their end in to do things, and the property can go to Foreclosure.
So, I just wanted to answer that question in regards to what people have been asking very frequently over the past few days. About 3 or 4 months on average is what the Short Sale should take. When you get an offer on the property, it shouldn’t take any more than sixty days, pretty much with any bank to get an answer, and then you’re dealing with time frames of closing after that.
Kurt Wannebo
San Diego Real Estate and Investments
www.shortsaleinsandiego.com
