need for short sale specialists

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How Long Will It Take For Short Sale Approval?

The concern of how long will it take for short sale approval to be received or handed down is actually something that is very hard to answer categorically. The main reason is that you would need to look closely at the situation of the lending bank along with a host of other factors that can affect the entire approval process. The timeline for approval of a short sale transaction can run from as little as a few weeks up to almost six months. This is something that majority of homeowners need to deal with and understand in order to avoid facing foreclosure on their properties. Although the timeframe is considerably long, it is important to understand that the short sale transaction remains as one of the best options open to every homeowner facing financial challenges.

One of the determinants on how long will it take for short sale approval to be received is how fast the homeowner decides on using this type of transaction to settle outstanding financial obligations. The faster they decide and pursue the short sale transaction, the faster the approval process can begin. Let us take a look at other factors that will affect the approval time.

1. Competent real estate agents or companies.

There is no doubt that one of the determining factors on how long will it take for short sale approval to be received is the choice of short sale specialist. Many homeowners are not aware that the short sale transaction is a relatively new field of the real estate industry. This means that an experienced real estate agent is an automatic assurance that they will get competent service. They need to acquire the services of short sale specialists with a solid background on closing these types of transactions. Having a novice or inexperienced real estate agent handle the short sale transaction can lead to a number of potential problems like wasting time with unprepared buyers or incomplete submission of documentary requirements among others. There is also the inherent danger that the real estate agent may give the wrong advice preventing the homeowner from making an informed decision.

There are a number of real estate agents that look solid on the surface, but once you go deeper, you will see that they do have not successfully closed a substantial number of short sale transactions.

1. Number of liens on the property.

Another factor that will affect how long will it take for short sale approval to be released is the number of liens on the property. Every experienced real estate agent knows that dealing with one lender is challenging enough, but dealing with multiple lenders can be very complex. This is why; one of the determining factors on the approval time for short sale transactions is the number of liens on the property. Basically, each additional mortgage on the property represents an additional one to two months of processing time. Another thing to consider in terms of multiple liens is the type of liens associated with the property. If a property is under a mortgage lien and a home equity lien, then this can mean an extremely extended processing time for the approval of the short sale transaction.

Homeowners should realize that lender banks do not want to lose out on their investments, which is why there is often a squabble over the money that will be potentially generated from the sale. This further highlights the need for short sale specialists.

1. Keep track of the names and number of the lenders.

In relation to the previous factor, the real estate agent should be able to keep track of all the names and numbers of the lenders holding a lien on the property. It is not impossible for a competent real estate agent to negotiate short sale for a property that has three to five liens. However, this goes to the competency and strong background of the short sale specialist. There is no question that the more lenders involved, the longer and more complex the transaction will become. You do not want to complicate the entire process by failing to follow up and constantly communicate with all the lenders involved.

There are some lenders that may demand unsecured promissory notes from the seller or a higher payment than usual. It is up to the real estate agent and/or Seller's Attorney to negotiate these details to ensure that approval is secured at the shortest time possible.

1. Banks hold the key.

If you want to have a clear idea on how long will it take for short sale approval to be given out, take a close look at the condition of the bank holding the lien on the property. The reaction time of banks varies distinctly based on their current manpower and ability to deal with various types of loans. There are banks that have earned the reputation of being notoriously slow when dealing with short sale transaction approvals.

By far, the fastest approvals of short sale transactions and requests come from small local banks along with the VHDA. Involvement of organizations like Fannie Mae will also add a few weeks to the processing timeline. In general, when it comes to short sale transaction approvals, the bigger the bank the longer the processing time it takes.

1. Complete short sale package.

The short sale transaction is widely considered as documentation intensive, which means that lender banks rely heavily on the accompanying paperwork. Therefore, submitting a short sale package that is incomplete will add to the processing time required to secure an approval from the lender. In most instances the file gets relegated to the bottom of the pile and without regular follow up from the real estate agent, it fades into oblivion. To have a general idea on how long will it take for short sale approval from submission, take into consideration the following steps to the process:

• Acknowledgement of bank
  
• BPO or appraisal order
  
• Review of short sale file
  
• Assigning of negotiator
  
• Possibility of assigning a level 2 negotiator
• Submission to mortgage insurance company approval and/or investor approval
  
• Approval or rejection of short sale
  

Homeowners should be aware that if the processing time goes beyond 120 days, there is a possibility that the real estate agent is not paying close attention to the short sale transaction. In determining how long will it take for short sale approval to be granted, it is wise to also look into potential internal problems of the bank aside from the competency of the real estate agent. A qualified and experienced http://dtaylor.illinoisproperty.com is key to any short sale and gives the homeowner the advantage of a faster approval time. Our agents acquire the knowledge, skill and experience it takes to insure a successful short sale as well as a promising future for you. Our services are also 100% free to you because we understand that you have already been through enough in your financial burden and want nothing more than to see you through your short sale and moving forward in your life. (In the Baltimore area contact http://baltimoreshortsale.com)