Ashley Sanders, Real Estate Sales  (Golf Life Properties)

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Rainmaker
911,112
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

The approval you're looking for initially is the seller's. That should be the normal protocol you use: 24-72 hours. Bank approval can take months, so you have to check in typically bi-weekly (was my practice) but 1-6 months was very typical for a bank to approve. Much of that had to do with the skill set of the listing agent too. I got short sales done in 90 days or less by 2010. My first short sale in 2007 took 1.5 years! But my skills improved and the banks' processes got more systematized.

Apr 25, 2016 11:39 PM
Rainmaker
998,995
Corinne Guest
Corinne Guest, REALTOR® | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

No reason for a seller to take longer than 2 days. If a bank ask you to change the contract to reflect their accpetance date, they are wrong. They are not accepting a contract, they don't sign it. They just approve the terms with the end investor. We all know many of them still do not know what they are doing.

Apr 25, 2016 11:48 PM
Rainmaker
3,240,957
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Thomas J. Nelson, Realtor provided good advice.  

Apr 25, 2016 11:47 PM
Rainmaker
1,505,122
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

The banks want it to always not say a date. So I put in '30 days after SSA' which means 30 days after short sale approval for the close. Acceptance is done by the seller as a usual contract would. The secondary approval is the banks obviously which will be some time in the future. Banks will accept this 'short code' of sorts.

My sellers always sign ASAP.

Apr 26, 2016 12:37 AM
Rainmaker
2,704,298
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Ashley Sanders it depends on the bank, don't include an acceptance clause as the bank is going to take their own sweet time in responding.  Just prepare your buyer for lengthy waits on everything to do with their offer.

Apr 26, 2016 12:01 AM
Rainmaker
3,763,659
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I have no clue as I don't do them would refer them out.

Apr 25, 2016 11:35 PM
Rainmaker
680,424
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Our AZ short sale addendum provides for all time periods to actually begin upon receipt of the settlement letter. So there's no need to rewrite the contract and 'start the clock', so to speak, upon bank approval. If you don't have such an addendum in your state, you may want to add a clause to your offer that bank approval will be the actual start point for all due diligence and financing etc. time frames. Get the seller's sign on ASAP.

Apr 26, 2016 12:35 AM
Rainmaker
3,049,871
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

We advise Buyer Agents in docs attached to the MLS listing to allow 2 business days...

Apr 25, 2016 11:39 PM
Rainer
389,243
Anna Hatridge
Goodson Realty - Farmington, MO
Missouri Realtor with Goodson Realty

I recommend to my buyers that the Time of acceptance deadline should be the time they are willing to wait for a response.  So it depends upon how long they want to wait, could be days, weeks, months or even open ended if they are not sure.  I have a short sale listing that is currently under contract after taking the lender 6 months to decide to approve the short sale amount.

Apr 26, 2016 12:42 AM
Rainmaker
1,817,491
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Whenever ?

 

Apr 26, 2016 12:38 AM
Rainmaker
984,394
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I leave it OPEN. If the buyers want to walk. Submit a cancellation or another offer in.

Apr 26, 2016 12:35 AM
Rainmaker
1,521,521
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Typically this is the case. You must be not only patient, but flexible on short sales

Apr 26, 2016 12:26 AM
Rainmaker
1,238,442
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

No matter what time frame you give them it is what pile will they be working on and mostly one a day for them to reply!

Apr 26, 2016 12:18 AM
Ambassador
3,914,717
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

I would allow the 3 days per our standard contract for seller acceptance

Apr 26, 2016 12:17 AM
Rainmaker
783,646
Susan Laxson CRS
HomeSmart Professionals - La Quinta, CA
Local Knowledge & Global Network

I agree with Thomas J. Nelson, Realtor 's response.

Apr 26, 2016 12:12 AM
Rainmaker
3,187,661
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Ask the listing agent what works....sellers may be in other time zones, not living together etc. The Lender acceptance has nothing to do in terms of time with the Seller acceptance and is not a part of a Wisconsin contract..The Sellers still own the house at the time that the short sale offer is written.

Apr 26, 2016 12:12 AM
Rainmaker
823,093
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I give my customers the rundown - it could take month's or even years for it to even close so let's keep looking in the mean time

Apr 27, 2016 09:11 PM
Rainmaker
5,264,119
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Seller acceptance and lender approval are two different things. A high percentage of short sale contracts never reach settlement.

Apr 26, 2016 10:17 PM
Rainmaker
1,648,677
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Are you talking about the seller acceptance or the third party approval 

Apr 26, 2016 09:07 PM
Ambassador
2,849,864
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

we put 48 hours, but we also have an adendum that seller signatures are subject to third party (bank) approval and I've never been asked to redo a contract after acceptance

Apr 26, 2016 03:25 PM
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It really is a shot in the dark and just depends how long the buyer is willing to wait for an answer. I don't think 3 days is nearly long enough unless the contract includes contingencies based on seller's lender approval and sales price amounts may have to change.

Apr 26, 2016 01:34 PM
Rainmaker
2,763,575
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

The seller/owner accepts the offer.  The lender approves it. 

What is a "potential short sale"?  That sounds to me like being half pregnant. 

I always used 90 days in the contract.  

Apr 26, 2016 09:20 AM
Rainmaker
1,477,891
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

haha, 3 days? i'm sorry, but you should do better than that. If you are not sure, call a listing agent and ask. You seems already have some experience, it can take months to get a SS approval. 

Apr 26, 2016 08:42 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I have found that it does not matter, banks will ignore your deadlines every time.

Apr 26, 2016 05:56 AM
Rainmaker
1,211,014
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Thomas has your answer.  The last couple short sales I've written on have been that way.  Seller approves then it goes to the banks.  They're getting quicker, but still take their sweet time.

Apr 26, 2016 05:55 AM
Rainmaker
2,424,124
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I leave those open as banks do whatever they want when they want. Think 800 pound Gorilla

Apr 26, 2016 05:32 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

There's a difference between seller approval and the third party (lender) approval.  You should give the sellers the normal 1 to 3 day time for acceptance and then have a short sale addendum that gives the lender anywhere from 30 to 90 days for their approval.

Apr 26, 2016 04:29 AM
Rainer
8,868
Ashley Sanders
Golf Life Properties - Golden Gate, FL
Real Estate Sales

Thanks everyone. Luckily, my buyers have all the time in the world as this will be a vacation home for them and they are cash buyers, so that is lucky too.

I have advised them that it will be a waiting game if we get the seller to execute. I understand the crystal ball is needed when it comes to the bank because i had a short sale a year ago and it took FOR EV ER!!!

Another ray of sunshine is the home is in great condition and very clean.

Thank you all so much for the advise and I decided to give the seller the 2 days to respond to the offer. We shall see....

Apr 26, 2016 02:54 AM
Rainmaker
291,467
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

You should understand bank process when working with short sales . Most banks will require a BPO to be completed by one ore multiple people and if your offer is close to this value you should get a response . It usually takes a couple of weeks. I should also add you could reduce this time if the bank has approved a price on another buyer but that buyer has walked away from the deal . Finally I want to add that many short sales are difficult to get approved because banks know market is improving and are now expecting to get fair market value on the short sale property. 

Apr 26, 2016 02:42 AM
Rainmaker
729,720
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Sellers acceptance and third party approval can be a huge difference. If using Equator, they had built in deadlines for parties to meet. Each lender is different.

Apr 26, 2016 02:36 AM
Rainmaker
4,869,368
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

the seller will respond with due diligence....but the waiting game is to be expected from the bank with their approval of what the seller approved ....the bank doesn't care about dates.... they all march to their own drummer....wait for the answer or leave...they don't care!!

Apr 26, 2016 02:27 AM
Rainmaker
106,956
sandy straley
Rindlesbach Homes - Salt Lake City, UT
Selling Homes for over 40 Years

Check with the listing agent and see how long the bank needs to accept the offer. . .  as well as if the seller is local to sign the agreement.

Apr 26, 2016 02:25 AM
Rainmaker
2,974,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

How long it might take a bank to approve is anyone's guess. Be prepared to wait.

Apr 26, 2016 01:57 AM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Every bank is different.  Many do it care about the time frame

Apr 26, 2016 12:49 AM