OfflineI have been checking into the short sale type of investment. It is a general rule that the bank has to approve the final offer. Is it true that it takes generally two to three monhs to get a sale closed. From the time you make an offer to close?
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Ali
Ali: Your question is valid and very important. The unfortunate answer to the question is that time periods can be variable, from a few days to several months. Many banks are understaffed and each agent is dealing with stacks of files that need to be processed for foreclosure.
A foreclosure, in most states, will require approximately 6 months from the Notice of Default (NOD) to the Auction, but there are many examples of delinquent homeowners remaining in their property for one to two years after the NOD. This is reflective of this overburdened caseload situation.
A lender will generally give a higher priority to any situation where there has been a proposed resolution, so it is unlikely that the process will extend too long. A part of the process that can slow things down is getting the borrower/seller to supply the required information for the short sale packet, and that is a situation where we, as investors may be able to pressure them to gather and complete the documentation and get it forwarded to their lender.
One further encouragement is to make sure that your offer reflects the need for a bank review. (Example 1: This offer is subject to approval by seller's lender; Example 2: Subject to an acceptable full inspection of property by buyer and/or associates within 14 business days following approval of offer by seller's lender). By hinging specific variables on the lender's approval, you maintain your ability to terminate the agreement even after the lender's review.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
Hi to hear of your success and that you are spending more time in church activities. I am a pastor myself and has been trying to understand the short sale process. I would appreciate if you would send me some more information about the process.
My email address is cwyllis@**** or call me at 347 276-6186. I leave in the Bronx, NY
when you say free to buyer and seller? what exactly is that? the buyer does not have to pay a commission fee? how does the agents get paid? from the bank?
Hello, I need to get POF to close on one of my flip, can I get some assistance?
The very best POF is to print your bank statement showing you have funds to close the deal. The next best would be a partner you're working with.
There are some sites out there that offer POF's for free (Google it), however if the seller or their agent calls to verify it, many times it's worthless.
Hope that helps and good luck!
- Tom