1,543,983
The approval you're looking for initially is the seller's. That should be the normal protocol you use: 24-72 hours. Bank approval can take months, so you have to check in typically bi-weekly (was my practice) but 1-6 months was very typical for a bank to approve. Much of that had to do with the skill set of the listing agent too. I got short sales done in 90 days or less by 2010. My first short sale in 2007 took 1.5 years! But my skills improved and the banks' processes got more systematized.
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Nina Hollander, Broker
Charlotte, NC
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Anna Hatridge
Farmington, MO
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Lisa Von Domek
Dallas, TX
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Becca Rasmussen
Highlands Ranch, CO
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Thomas J. Nelson, REAL...
La Jolla, CA
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Michael Jacobs
Pasadena, CA
4,572,595
Thomas J. Nelson, Realtor provided good advice.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Lisa Von Domek
Dallas, TX
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Thomas J. Nelson, REAL...
La Jolla, CA
1,844,301
The banks want it to always not say a date. So I put in '30 days after SSA' which means 30 days after short sale approval for the close. Acceptance is done by the seller as a usual contract would. The secondary approval is the banks obviously which will be some time in the future. Banks will accept this 'short code' of sorts.
My sellers always sign ASAP.
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Nina Hollander, Broker
Charlotte, NC
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Anna Hatridge
Farmington, MO
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Candice A. Donofrio
Fort Mohave, AZ
2,707,721
Ashley Sanders it depends on the bank, don't include an acceptance clause as the bank is going to take their own sweet time in responding. Just prepare your buyer for lengthy waits on everything to do with their offer.
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Nina Hollander, Broker
Charlotte, NC
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Anna Hatridge
Farmington, MO
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Candice A. Donofrio
Fort Mohave, AZ
5,005,895
I have no clue as I don't do them would refer them out.
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Nina Hollander, Broker
Charlotte, NC
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Anna Hatridge
Farmington, MO
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Lisa Von Domek
Dallas, TX
1,052,321
Our AZ short sale addendum provides for all time periods to actually begin upon receipt of the settlement letter. So there's no need to rewrite the contract and 'start the clock', so to speak, upon bank approval. If you don't have such an addendum in your state, you may want to add a clause to your offer that bank approval will be the actual start point for all due diligence and financing etc. time frames. Get the seller's sign on ASAP.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Anna Hatridge
Farmington, MO
3,071,489
We advise Buyer Agents in docs attached to the MLS listing to allow 2 business days...
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Tony and Suzanne Marri...
Scottsdale, AZ
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Anna Hatridge
Farmington, MO
392,768
I recommend to my buyers that the Time of acceptance deadline should be the time they are willing to wait for a response. So it depends upon how long they want to wait, could be days, weeks, months or even open ended if they are not sure. I have a short sale listing that is currently under contract after taking the lender 6 months to decide to approve the short sale amount.
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Anna Hatridge
Farmington, MO
2,182,552
1,239,901
I leave it OPEN. If the buyers want to walk. Submit a cancellation or another offer in.
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Anna Hatridge
Farmington, MO
1,726,096
Typically this is the case. You must be not only patient, but flexible on short sales
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Anna Hatridge
Farmington, MO
1,513,143
No matter what time frame you give them it is what pile will they be working on and mostly one a day for them to reply!
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Anna Hatridge
Farmington, MO
5,049,488
I would allow the 3 days per our standard contract for seller acceptance
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Anna Hatridge
Farmington, MO
823,579
I agree with Thomas J. Nelson, Realtor 's response.
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Anna Hatridge
Farmington, MO
3,340,443
Ask the listing agent what works....sellers may be in other time zones, not living together etc. The Lender acceptance has nothing to do in terms of time with the Seller acceptance and is not a part of a Wisconsin contract..The Sellers still own the house at the time that the short sale offer is written.
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Anna Hatridge
Farmington, MO
1,598,452
2,071,025
989,652
I give my customers the rundown - it could take month's or even years for it to even close so let's keep looking in the mean time
7,836,442
Seller acceptance and lender approval are two different things. A high percentage of short sale contracts never reach settlement.
2,363,566
Are you talking about the seller acceptance or the third party approval
3,164,294
we put 48 hours, but we also have an adendum that seller signatures are subject to third party (bank) approval and I've never been asked to redo a contract after acceptance
3,988,007
It really is a shot in the dark and just depends how long the buyer is willing to wait for an answer. I don't think 3 days is nearly long enough unless the contract includes contingencies based on seller's lender approval and sales price amounts may have to change.
3,345,221
The seller/owner accepts the offer. The lender approves it.
What is a "potential short sale"? That sounds to me like being half pregnant.
I always used 90 days in the contract.
1,622,432
haha, 3 days? i'm sorry, but you should do better than that. If you are not sure, call a listing agent and ask. You seems already have some experience, it can take months to get a SS approval.
6,393,609
I have found that it does not matter, banks will ignore your deadlines every time.
1,503,028
Thomas has your answer. The last couple short sales I've written on have been that way. Seller approves then it goes to the banks. They're getting quicker, but still take their sweet time.
2,781,303
I leave those open as banks do whatever they want when they want. Think 800 pound Gorilla
4,800,082
There's a difference between seller approval and the third party (lender) approval. You should give the sellers the normal 1 to 3 day time for acceptance and then have a short sale addendum that gives the lender anywhere from 30 to 90 days for their approval.
9,018
Thanks everyone. Luckily, my buyers have all the time in the world as this will be a vacation home for them and they are cash buyers, so that is lucky too.
I have advised them that it will be a waiting game if we get the seller to execute. I understand the crystal ball is needed when it comes to the bank because i had a short sale a year ago and it took FOR EV ER!!!
Another ray of sunshine is the home is in great condition and very clean.
Thank you all so much for the advise and I decided to give the seller the 2 days to respond to the offer. We shall see....
292,685
You should understand bank process when working with short sales . Most banks will require a BPO to be completed by one ore multiple people and if your offer is close to this value you should get a response . It usually takes a couple of weeks. I should also add you could reduce this time if the bank has approved a price on another buyer but that buyer has walked away from the deal . Finally I want to add that many short sales are difficult to get approved because banks know market is improving and are now expecting to get fair market value on the short sale property.
911,448
Sellers acceptance and third party approval can be a huge difference. If using Equator, they had built in deadlines for parties to meet. Each lender is different.
5,583,278
the seller will respond with due diligence....but the waiting game is to be expected from the bank with their approval of what the seller approved ....the bank doesn't care about dates.... they all march to their own drummer....wait for the answer or leave...they don't care!!
129,698
Check with the listing agent and see how long the bank needs to accept the offer. . . as well as if the seller is local to sign the agreement.
5,104,931
How long it might take a bank to approve is anyone's guess. Be prepared to wait.
3,986,258