The correct answer is - there is no correct answer. Generally speaking, an approval can be comfortably achieved in about 45 days. Having said this, many banks can approve your short sale in as little as 21 to 30. Unfortunately, there are also those few that might have your submission pending as long as 90 days awaiting approval. The right question to ask, however, is never “how long does it take,” but “when do I start?” A seller must be ready to close when the right buyer arrives, and an experienced short sale attorney knows their lender lead times. When you choose the right representation, your documents will be sent in early enough to commence the process safely in advance, but not so soon as to achieve a payoff before you have a contract in play.

Not at all. The value of your home (relative to its outstanding mortgage balance) has absolutely nothing to do with either the length of time to get approved or the likelihood of achieving a successful short sale. The short sale process is about what your home can be sold for today, regardless of what it was once worth or how much was loaned against it in the past. At Aiossa and Associates, we routinely achieve discounts in excess of $200,000 per property. Even severely negative equity is not a problem when capable professionals are pursuing your bank negotiation.

Generally speaking, negotiating two loans takes no longer than working just one. Both files are submitted at the same time, and if they are with the same lender, often one case worker can review both packages simultaneously. In rare cases, some second mortgage lenders will not accept a short sale package until the first payoff is fully approved. In these situations, it is important to plan your submissions well in advance and build the payoff for the second loan into your closing figures on the first. Short sales are about anticipating the unexpected and addressing all necessary costs. Although multiple liens can be tricky, overcoming them is possible as long as your attorney researches the property thoroughly and calculates the financial projections accurately.

One of the biggest advantages of a short sale is the option to extend occupancy. Our standard negotiation protocol enables us to put your foreclosure on hold indefinitely until the short sale process is complete. By doing this, you are able to remain in the home (payment free) for as long as the short sale takes. This gives you more time to make relocation decisions, save up a security deposit or catch up on other bills as you prepare to make a fresh start.

The two most important factors in achieving a quick approval and close are (1) organization and (2) accessibility. Your attorney will typically need loan papers, bank statements, income verification and foreclosure information if applicable. Have your requested documents ready and be prepared to deliver a full set of paperwork when asked. Secondly, help your realtor help you. Be available for showings whenever asked, even on short notice. Be open to advice on price and home presentation, especially if you are motivated for a quick sale. The short sale process can move as swiftly or as slowly as you allow, so choose the right professional team at the beginning and then follow their experienced advice. You will be pleasantly surprised at just how simple the short closing can actually be.

Definitely. A sloppy or incomplete submission can stall a short sale indefinitely. It may cause an approvable file to suffer unnecessary denial or even bring about a foreclosure prematurely. Inexperienced individuals can assemble defective packages that sit at the bank unreviewed for months. Lenders are usually too busy to call and notify anyone when documents are lacking, so a seller will lose valuable time if everything is not handled properly from the get go. Even worse, if the closing and title figures are not computed perfectly from the beginning, the approved payoff may be off by thousands of dollars, requiring the seller to actually bring money to the table if he has any hope of closing.

Sometimes yes, and sometimes no. The answer depends entirely on the type of mistake that was made and how much time was lost in making it. Incomplete documents or defective valuation materials can usually be supplemented with the items necessary to correct them. On the other hand, faulty title work or sloppy financial calculations may result in a payoff so high that it cannot effectively bring about a closing at the current market price. Obviously your safest bet is to choose the right attorney from the beginning, but failing that course, never assume it is too late to achieve your closing. Place your short sale (regardless of where it is in the process) in the hands of a qualified short sale professional as soon as practically possible. Even if you have already been denied, be certain that all that can be done has been done before you give up.

Absolutely! The single most important factor in short sale approval, after attorney and realtor, is lender. Bank work flow, short sale staff, and net minimum payoff parameters make all the difference in the world when it comes to achieving a successful closing. Experienced attorneys know which banks work quickly and which ones are sluggish. We also know when a loan with PMI will require additional sign offs versus those cases where no management approval is required. We can even predict which government mortgages will restrict the concessions you are eligible to give your buyers. In the end, knowing the lender is important, but knowing how to maneuver within that lenders’ protocol is the real key to short sale success.

Some short sale buyers make ridiculously low offers in the hope of stealing a distressed property from the bank. These contracts often result in a counter offer more in line with market value. A good short sale realtor and attorney know which contracts are reasonable and which are certain to be rejected. In knowing this, the experienced team can properly prepare a file for the bank counter well in advance of its arrival. We can also continue soliciting back up offers more in line with fair market value. By taking these anticipatory steps, the counter itself should not cost more than a few extra days in processing time and it will ultimately not prevent your sale from closing on schedule.

Always remember that your buyer made you an offer because he wanted to buy your house. The vast majority of failed contracts do not fall for buyer impatience but for lack of buyer information. A seasoned short sale realtor /attorney team knows how to manage the parties’ expectations. If your buyer is kept in the loop and provided with regular updates, he will appreciate the length everyone is going to in trying to get him those keys. Most all of the time, the well informed buyer stays on board as long as it takes to get the deal done.