Last year, I would say you needed to hang on to your seat for at least 9 months to get an answer from the lender regarding a short sale. Bank of America seemed to take the longest. Now with Bank of America's new Equator system, things seem to be going in the right direction. At least for me they are. I have had quick responses for the last 3 short sale that I have worked. I have a couple more on hold with Bank of America, so we shall see.
The Banks are really trying to give us answers within 60 days. Some have been even faster. But what I have noticed is I am getting counter offers from the banks. When these files go into review, the banks look to see if they would make more money letting the home foreclose or more money doing a short sale. So if you are thinking about buying a short sale because you think they are a good deal, you may want to review all of your options first. 1. You must wait for an answer. 2. Your offer will more than likely be counter by the lender. 3. You have waited 60 - 90 days only to find you can not buy the house. 4. These homes are sold AS-IS. You will be responsible for any and all repairs. 5. The mortgage insurance company or lender may seek to recover the remaining balance of the loan from the seller. Sometimes the seller finds any additional debt impossible to pay - thus letting the home go into foreclosure. Everyone loses.
Are short sale great deals? According to Bank of America, Short sale offers must be in line with current market values and produce net proceeds that exceed the net amount the investor would expect to recover through foreclosure. As a result, approved short sale prices average at or near the market value.
But not all doom and gloom. Many short sales have happing endings for everyone. The seller's credit is not as damaged as it would have been if the home went into foreclosure and the buyer is happy with their new home and the price they paid for it.
Always remember when looking for a home, there are good deals all over. This includes regular sales as well. You may find a better deal, a quicker response and a seller willing to do some repairs.
