What Happens to a Short Sale Offer Once it Goes to the Bank?

What Happens to a Short Sale Offer Once it Goes to the Bank?

Right now the banks are overwhelmed with short sales and foreclosures. That means everyone involved in the process may need to wait a long time for a response. The listing agent must communicate with the bank regularly. Wise agents must keep careful notes about who they spoke to and what the conversation was about.It’s also smart for the agent to communicate frequently with the buyers so that they don’t feel left out of the process. Still, it’s important that buyers of short sales have patience.Even though some short sales can get approved in as little as 6-8 weeks, others can take 90-120 days, on average.-Bank acknowledges receipt of the file. This can take 10 days to a month.-A negotiator is assigned. This can take 30 to 60 days.-A Brokers Price Opinion (BPO) or appraisal is ordered to confirm the value of the home. The bank probably will refuse to share the results of the BPO.-A second negotiator may be assigned. This can take another 30 days.-The file is sent for review or to the PSA (basically the investor owning the loan). This can take 2 weeks to 30 days.-The bank may then request that all parties sign an Arm’s Length Affidavit. This is to stop people from working together to defraud the bank.*What does PSA mean? Nearly 66% of loans made since 2005 have been securitized. This means that hundreds of loans were gathered together into one package and sold on the secondary market. Trusts that are made up of investors typically buy the package. This type of securitization agreement is known as a pooling and servicer agreement or PSA.Next Topic: What happens when a short sale offer is approved by the bank?For more information about short sales, please contact Torelli Realty.