Buying and selling a home can have varying timelines due to the number of steps and people involved in the process. The same is true for the short sale process. You may be watching the days go by and wonder, how long is the short sale approval wait? You are not alone and the answer is that it depends. It depends on a variety of factors. Below you will find information on which factors you may have control over to help speed up the process.
How Long Is the Short Sale Approval Wait?
Short sales are a really great option for buyers as they can often get a great home at a discount. One thing to keep in mind is that the process for a short sale can take longer and is a little more complex as compared to a traditional sale. However, if you have patience the process is likely worth it due to the major savings.
A short sale can take up to six months to be approved, but there are ways you can speed up the process while also protecting your interests.
Consider the following short sale process steps.
Get Approved for Financing:
This is a necessary step for both a short sale and a traditional sale. It’s important to get preapproval before you make an offer on a home. However, this is crucial during a short sale. This is because the lender will want to ensure that you are actually able to buy the home.
Finding a Home:
It’s advisable to get an experienced agent if you are considering a short sale. While you can research online to find listings, a skilled real estate agent will have more information about short sales in your local area.
Know the Facts:
It’s important to do your research when you buy a home no matter what. However, it’s integral to ensure your rights are protected with a short sale. When a homeowner sells their home via a short sale, they owe more money on the home than it’s actually worth. Before you purchase a short sale, be informed of any liens on the property. This can include people or entities. You can ask the seller and real estate agent, but it’s imperative to have a third-party title company do a title search on the property.
Offer and Inspection:
When purchasing a short sale home, you’ll need to be strategic about your offer. Consider the market value of homes in your region. While you can get a good deal on a short sale, the lender still wants to recover as much as they can on the mortgage. With that, consider making an offer that’s around the market value price of the home to increase your chances of getting it. In addition to making a reasonable offer, have the home inspected. Short sale homes are sold as-is, but you need to know what you are getting into. Consider home improvement repairs and other costs that may offset the good deal you are getting.
Once the lender has accepted, it’s important to ensure that the lender (and any other lienholders) release the collateral. The more people involved the slower the process is. In addition, the seller needs to provide documentation for the short sale, including a hardship letter, proof of income and assets, and a list of the liens.
Los Angeles Short Sale Realtors
No matter if you are a buyer or a seller of a short sale home, having a trusted real estate agent representing your interests is important. The team at Apex Resolution is skilled in the process from start to finish. Contact the top Los Angeles short sale realtors today!