Ventura County Buyers Ask: Why Does It Take So Long to Close a Short Sale?

In a short sale situation the home seller asks the lien holder(s) to accept less money from the sale of the home than what is owed to pay off the loan.

Since the lien holder(s) (lenders) do not want to lose a substantial amount from the sale of the home, a series of procedures are followed by the lien holder(s).  The lien holder has to examine and evaluate the property and determine how much of a loss is justifiable by selling the property in a short sale.

If the home owner has more than one loan on their property, the short sale process becomes even more complicated.  In such cases both lien holders want the least loss on their loan.

A long list of documents and a hardship letter are required by the lender once a home owner requests a short sale.  Some home owners decide to put their home on the market for sale before a short sale approval has been issued by their lender.  You might have come across a few short sale homes in Ventura County where the home price was increased after a few weeks from what the price was originally advertised.

In such cases the lender(s) have approved the short sale, but did not like the price.  The lender(s) then request the home owner or the home owner’s Realtor to increase the sale price of the property.

Because short sales take a long time, many buyers get tired of waiting and move on.  Unfortunately, this results in even more delay since banks review the offers serially.

The key to purchasing a short sale is a reasonable offer, patience, and tenacity … of course a great realtor won’t hurt

If you need any assistance with a short sale or any other real estate concerns, feel free to contact me, Mana Tulberg (805) 443-8898.

You may enjoy these posts too:

1. Ventura County Home Owners Ask: What Is A Short Sale?
2. To Buy Or Not To Buy A Short Sale In Ventura County
3. Buying A Bank Owned Home In Ventura County
4. Difference Between Short Sales and Bank Owned Homes