Loading ...The dynamics of short sales are very different from normal sales. Because the seller’s bank must approve any buyer’s offer PLUS approve of the eligibility of the seller themselves for a short sale, the process of a short sale transaction takes many months from start to finish to consummate. We’ve seen them taking anywhere from 3 months* to as long as 10 months for approvals.
That said, the home is “always” available even after receiving a “seller accepted offer” because of the unknown status of whether or not a potential buyer (the first-position offer) will still be around by the time the bank makes their decision concerning the eligibility of the seller and the worthiness of the buyer’s offer.
The seller typically wants to have a couple of backup offers in place so that the best one can become the first-position offer if the current one has rescinded or gets rejected by the seller’s bank.
This happens very often, because buyer’s oftentimes make multiple offers on many different homes until one of them gets “approved”. Once they have an accepted, approved contract, they rescind all the other offers they put out – even first-position ones, because they probably only need one house!
It is purely a numbers game. The more offers the buyers put out, the more likely - and quicker – they will have a new home.
Even though a short sale home has a first-position offer being considered right now by the seller’s bank, it will usually whole-heartedly welcome strong back-up offers. It is a very smart thing to do if you really like that house.
* Approval time of 3 to 10 months is from the Seller’s perspective. A shorter duration is possible from the Buyer’s perspective if the property you are offering on has already had a first-position offer approved, but the buyer rescinded/ walked away because of the scenario I pointed out above. In this case, it is very possible you could close in less time if your Offer is similar to the earlier offer that was already approved by the seller’s bank. If your offer is very different though, the approval process might have to be restarted all over again!
Tony Pomykala, REALTOR, ePro
602-290-6217
Sunrise Investments
http://www.HomeListingsArizona.com
http://www.BuyingHomesAZ.com
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