How Long do Short Sales Really Take?

Purchasing a short sale property can be a fantastic way to break into homeownership at a discounted price. It can be especially appealing in hot markets (like Denver), where inventory is low and demand is high. You may have heard that, despite their name, short sales can take an exceedingly long time. While this can sometimes be the case, it isn’t always. Read on to learn more about the short sale buying process and how long you can expect it to take.

The good news is that, on average, the short sale process doesn’t take as long as it once did. This is thanks to a variety of rules and procedures that have expedited the process. The bad news is that it can still be hard to predict how long the process might take, due the variables involved.

A short sale occurs when a homeowner sells a home for less than the amount owed on the mortgage loan. In simple terms, they are selling the house “short” of the outstanding balance. But homeowners can’t simply list their home for less than they owe; they need their lender’s permission, since the lender will be taking a loss on the deal. This is one of the reasons why a short sale takes longer than a regular transaction.

If your real estate agent submits a complete offer with all of the necessary paperwork, it is not unrealistic to get approval within 30 to 60 days, or sometimes even sooner. This is a great deal faster than in the past when short sales were nearly guaranteed to take three to four months.

Purchasing a short sale can be a great deal for buyers, but given the variables in each case, it may not be the best choice for buyers on a tight timeline. If you’re ready to check out short sale options in the Denver-metro area, give Metrowest a shout. Our agents specialize in this type of sale and would love to help you with the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply