How Long Does The Short Sale Process Take?

There are three phases to the short sale process. First, you need to list the property and find the right buyer. Second, you have the negotiation phase. The final phase is the closing process. The total process, on average, takes between 90-180 days.

The listing process typically lasts between 30-60 days. In general, it is smart to initially price the property at a true ‘fair market value’ for the property type and neighborhood comps. This is based on a survey of all recent sales, included conventional listings, short sales, and bank owned properties. After 2 to 3 weeks, you want to lower your price on a weekly basis. There are two reasons for this. First, you want to demonstrate to your lender that you have tested each price point. Second, there is no value in having your short sale property priced too high. Nothing can happen until you have a buyer.

Once you have your property under contract, the negotiation phase begins. Depending on who your lender is, and how many loans there are on the property, this phase can take between 30-90 days. Sometimes it takes quite a bit longer, but in the end, an approval is received. You can see all of your recent approval letters here, with the amount of days it took.

The last phase is the closing period. This should take no longer than 30 days. However, sometimes the buyer’s financing is not in order, and the closing process is delayed. The best thing to do is use a funding service that guarantees a closing within 14 days.

In the end, there isn’t a guarantee that a short sale can be done in a fixed time period. It is simply best to be patient, choose who you work with carefully, and trust that they are doing everything possible to help you settle your accounts in the most favorable terms, in the quickest manner possible.

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