It’s no news that the short sale process can be a long process. Many buyers at this time get tired of waiting and would threaten to cancel if they do not get answers within a specified time. This doesnâ€™t help matters and doesnâ€™t help make the process simpler or faster.
Following is a standard short sale process with the bank:
- Bank acknowledges receipt of your file. This can take 10 days up to a month.
- A negotiator is assigned. This can take a week to thirty days.
- A BPO is ordered. The bank probably will refuse to share the BPO results.
- A second negotiator can be assigned. This can take another four week period.
- The file is usually sent for review or to the PSA. This can take 2 weeks to 30 days.
- The bank will then request that all parties sign an Arm’s-Length Affidavit.
- The bank issues a short sale approval letter.
Buyers get mad and annoyed because the short sale process is generally so lengthy they will sometimes cancel without telling anyone, much less the vendor. Some short sales get approval in 2 to 8 weeks while others can take 90 to 120 days, on average
Banks are losing cash in a short sale and aren’t really enthusiastic about it. It’s justifiable. Envision that you advanced a companion $100, and he came to you later saying he could just pay you back $75. Would you cave in easily? Most likely not.
In fact, everybody knows that it can and virtually certainly will take orders of magnitude longer than the average 30 to 60 days until you sign on the dotted line and the nightmare ends. And yet, that is exactly what the buyer will put in the contract – a deadline of 30 to 60 days.
Your bank, of course, will completely ignore this date, they do not care if you want to keep a buyer. The ball is in their court, and they get to call the shots. They will whenever they are ready – they are busy with other people just like you – and not any moment sooner.
It’s important to understand that a buyer and their agent haven’t any control over the procedure. The success of a short sale — and how long the short sale takes — relies intensely on the listing agent. If the listing agent isn’t familiar with short sales, you’re very likely wasting your time. An excellent short sales listing agent will effectively advise the homeowner and have an intensive knowledge of the lender and their particular processes.
During this time, it is rather likely you are feeling bored or unhappy looking forward to the short sale approval. It’s normal to experience a wide range of emotions during the process, from elation (finding the right house or opportunity) to frustration (when in God’s name am I going to get a short sale approval) to dejection (probably not meant to be). But no matter how justified your feelings, you aren’t doing yourself any favors when you let them get the best of you. This isn’t to suggest that you would think of sobbing on the phone to your agent, but don’t underestimate how even subtle exhibits of emotions like frustration or impatience can shine through during your communications with agents and lenders. Here are some tips to keep lucid during the short sale process:
Donâ€™t put your life on hold.
Donâ€™t lose sight of the personal goals during the waiting process. Donâ€™t stop authoring, blogging, reading, working out, eating healthy, studying, making music, painting or any program you already take part in! Sticking with your goals will help make the wait much more worth it.
Find a way to stay positive during this period, while talking to your agent, lender or buyer. This makes them more enthusiastic about the process too. Positivity is contagious. A good way to stay positive is to keep yourself busy, make improvements in other areas of your life.
Do not hound your broker or home loan expert … as much as you want.
Keep your phone out of sight when you should be focused. Chances are the lender won’t come to a decision early on. If you donâ€™t understand something linked to the process, call your agent or mortgage banker certainly, but don’t keep contacting for a decision on the short sale from your own real estate agent. Whether you become close friends after expending hours on the telephone or not- your agent can not work for the lender, and really you’re simply using up your daytime minutes.
When awaiting the short sale approval, it’s important that you focus on other things than just waiting on short sale approval. Focus on what life will be like after the short sale is complete. Sellers should focus on finding a place to live after the short sale is done, saving money and getting their finances in order.
Unfortunately, waiting is a part of the short sale process. Do not let it stress you out or make you think your short sale will be denied. It is not unusual for months to pass by without a solid solution. In the meantime, you will submit paperwork and resubmit several times. Do not let this part of the process put you down, it’s just part of the short sale experience.
Here are some things to keep you busy while waiting for short sale approval:
- Become a Guitar God in 90 days – Easy and free guitar lessons.
- Take the 365 challenge. Make something every day and “kick start your creativity.”
- Working out.
- Write a novel.
- Meditate, daydream, lying in the grass and watch the clouds
- Write a book
- Make 60 paintings in 60 days
- Gain 20 pounds of muscle in 60 days
- Go from Couch to 5K in 60 days
- Take and pass the GMAT
- Learn a language
- Practice Yoga everyday
- Sign up for cooking classes
- Try 30 rolls of sandwiches
During this time; the point is; make every effort to improve yourself. Become better at your job, you can work out to become better physically, this will yield better returns for you after the long 90 days of the short sale approval process.