How long does it take to close a short sale after approval?
When your perseverance has paid off and the bank has accepted a short sale with your offer, it’s time to proceed with the closing process. The good news is that once they’ve approved everything, the bank will be eager to finish the transaction — probably within 30 or 45 days.
How long does it take for Fannie Mae to approve a short sale?
Fannie Mae requires servicers to remit the short sale proceeds to Fannie Mae within two business days of a servicer’s receipt of the net sale proceeds, but no later than three business days after the short sale closing.
Why do banks take so long to approve a short sale?
As new people filter in, they have to get up to speed on the deal, and that can take even more time. The system isn’t perfect, and it eats up time. And the more money the lender will lose, the more time it may take to process and approve the short sale.
What is the timeline of a short sale?
A lender can take as long as 12 months to process a short sale package, including an offer from a viable buyer. In that time, the buyer must wait for approval from the lender. If no response is received from the lender, then it may be time for the interested buyer to move on to a different home.
What is FNMA waiting period?
Summary — All Waiting Period Requirements
| Derogatory Event | Waiting Period Requirements |
|---|---|
| Bankruptcy — Chapter 7 or 11 | 4 years |
| Bankruptcy — Chapter 13 | 2 years from discharge date 4 years from dismissal date |
| Multiple Bankruptcy Filings | 5 years if more than one filing within the past 7 years |
| Foreclosure 1 | 7 years |
Will the bank take less on a short sale?
Why Short Sale Pricing Is Unreliable If the list price is too low, the bank will reject the short sale. Moreover, a low list price could be a strategy used by the listing agent and seller to entice multiple offers on the short sale. In short, the list price of a short sale could mean nothing at all.
What are the steps in a short sale?
- Step 1: Engage Professionals & Pre-Negotiation.
- Step 2: Property Listed, Marketed & Sales Contract Submittal.
- Step 3: Short Sale Package & Submittal to Bank.
- Step 4: Lender’s Review.
- Step 5: Lender Response & Submittal to Buyer.
- Step 6: Short Sale Closing.
- Step 7: Post-Closing.