Buyer's Role in a Short Sale
Without a Buyer, a Short Sale Is Just Another Listing
Aside from being the one who is the catalyst for the entire short sale process, the buyer plays a key role in its successful approval. When an offer is made on a short sale listing, the listing agent will send the buyer’s offer to the lender for a review. The lender will compare the buyer’s offer amount to the value of the property and decide whether or not to approve it for a short sale. Without a buyer, a short sale is just another listing.
There are a few key stages the buyer should know about as the offer goes through the short sale process. Many buyers wonder what is happening during the short sale process and how long it will take for the lender to review and approve the offer. What most buyers may not understand is that each short sale transaction is unique and may or may not follow a standard protocol or timeline to receive an approval. While that may be the case, the buyer should ask his or her agent to follow up with the listing agent to verify that the following stages in the short sale process are completed in as timely a manner as possible. The listing agent should update the buyer’s agent on a consistent, regular basis to avoid concern or dissatisfaction on the buyer’s part:
The above-mentioned timelines will vary with lenders and with the complexity of the short sale property—number and dollar amounts of liens, type of loan or investor involved. The majority of short sales across country are typically being lenders in approximately 60-90 days, depending on the variables of loan products, lenders, investors, and number of liens on the property.