How Long do Short Sales Take?

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With a name like “short sale”, you’d think the process would be quick. The “short” in “short sale”; however, actually refers to the amount of money the bank is willing to accept for it. In short sales, homeowners can no longer make payments and the bank agrees to a price that “falls short” of what the mortgage is. While these types of transactions can take longer than traditional sales, recent revisions to the process have made purchasing a short sale much faster than it once was.

Unfortunately, there’s no definitive amount of time we can give for how long a particular short sale will take. Some close in as little as 30 days. Other times it can be more like 60 or 90 days.  Much of this depends on the bank – some can take months to review and approve short sale offers – others review offers in a matter of weeks or even days. The timeline below will give you a great idea of how the short sale process works and – generally speaking – how long you should be prepared to wait.

  • Submission of offer and complete short sale package from the seller.
  • Bank acknowledges receipt — 10 to 30 days.
  • Bank orders a BPO or appraisal — 2 weeks to 2 months.
  • File is reviewed — 10 business days.
  • Negotiator is assigned — 10 business days.
  • Level II negotiator may be assigned — 10 business days.
  • File is approved or rejected — 30 to 120 days.

Hiring a real estate agent well-versed in the short sale process is crucial. An experienced agent will be able to give you an accurate idea of the time frame and buying process for these types of transactions. Are you ready to start checking out short sale properties in the Denver-metro area? Give us a shout – the pros at Metrowest would love to show you around!

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.

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