This Month in Real Estate June 2010 is here!
The number of foreclosures was down last month, with the thought that sellers are looking to short sales to prevent foreclosure.
Buyers are seeing short sales as a way to buy a house at a less expensive price — and enjoy the low interest rates at the same time.
The short sale process is explained very well, detailing that on average it takes 62 days for a bank to RESPOND to a buyer’s offer on a short sale, and an average of another 67 days to close.
A timeline of one of the houses used in the study is used to demonstrate the short sale process.
Day 1: Seller misses payment.
Day 7: Real Estate Agent is called in to help determine if seller may qualify for a short sale.
Day 13: Seller signs listing agreement to sell the house.
Day 25: Buyer’s offer is accepted by seller. Agent submits short sale documents including offer to the lender.
Day 35: Lender creates a short sale file for the property.
Day 50: Lender assigns property to an independent appraiser or agent to determine estimate of value (through what is called a BPO — Broker’s Price Opinion).
Day 65: Lender reviews property value estimation. If there is a gap, then this can take more time. Agent & owner can appeal valuation, but this is a process.
Day 90: Agent received letter of approval of short sale.
Day 110: Short Sale is closed, property is settled and transferred to buyer.
Remember, this is just an average. Many can take more time, some may take less. Many times it depends on the number of lien holders involved in the transaction. The more lien holders, the longer it may take, or the less likely it may close.
Contact me more information on selling a Baltimore home.