I sold one and it was horrible. If the seller does not stay on top of things, it could be dragged out for a while. Even with me repeatedly sending everything in I had to the second I got the paperwork, it still took over a month to get rid of that nightmare and the paperwork was simply what the mortgage company was demanding before they would even consider a short sale. However, the house was in great shape and the buyer got a great deal.
We put in our offer in April and closed in July. We paid their asking price but didnt have cash.
My mom is in the process of purchasing an investment property through a short sale, and it's taking forever. It's a federal loan that is the short sale, and that's what's creating most of the hold-up. It's been about 4 months, and it really hasn't progressed that far.
My mom is doing a "short sale" 4 people put offers in since Oct 2011 and none have been accepted or closed. One of the offers actually told the Bank that we had to be out by Dec 28th and this was Dec 15th. We moved out (we were renting) by Dec 28th because the bank said we had to. Offer fell through and we could have still be in the house saving money to move into another house instead of rushing to move out and into an apt.
OH and another thing.... if there are multiple mortgages on the house..... it takes longer.
Apparently the second mortgage company won't release the deed to the house or something and won't co-operate with the first mortgage company so it's going to take a long time to sell my mom's house. Which is kinda funny.... she had a starting asking price of $45,000.... it's now down to $25,000..... she's responsible now for the other $20k because the bank agreed to a short sale instead of a foreclosure.
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