It's been several years now since we have taken and sold listings of homes for sale that are
" Subject to Lenders Approval of a Short Sale" .
The process of getting these to close successfully has been, for the most part, becoming easier.
Perhaps it is from lessons learned along the way & doing the footwork and homework upfront before even agreeing to accept the listing and put a 'short sale' home on the market.
Lately, however, articles in major publications i.e 'Fewer Short Sales Come Up Short', point out that the part of the short sale process we do not control - the loss mitigation departments of lenders - are being more cooperative and responsive about getting short sales done.
In Indiana this year, a new law...HB1359 has helped bring answers to short sale offers within a 30 day time frame.
Since we've noticed this change in NW Indiana short sales....we are even accepting short sale referrals in our market area now from other Real Estate Brokers as a result. Just last week we closed on a short sale that was a referral from another REALTOR.
The lender complied with the new state law and the home closed 29 days after the offer was accepted by the lender! (59 days total from day of written offer).
Total Market Time on this Home = From For Sale Sign Up to signing the closing documents = 81 days in all. This is a relatively short market time for any home in NW Indiana, let alone a short sale property (where 3rd party negotiations, communications and many requirements above and beyond the usual and customary offer to purchase can lengthen the process of getting the deal closed :)
With cooperative sellers, saleable property and reasonable lenders, short sales in NW Indiana are closing easier & quicker than in years past :)
Thanks for stopping by and reading our Blog about Life in NW Indiana, The Housing Market, Communities, Local Sports, Events, attractions & more.
Sincerely,
Jeff & Grace Safrin, Broker / Owners
F.C.Tucker 1st Team Real Estate
13 Lincolnway Suite # 203
Valparaiso, IN 46383
Office # 219-309-9930
serving Lake, Porter, La Porte, Jasper, Newton & Starke Counties in NW Indiana
Independently Owned & Operated
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Hello Grace. That's good news. I believe we shall see this across the board in other states also, simply because short sales are becoming just as common as "normal" sales.... don't you agree?
Grace, I'm happy about the new law if Short Sales can close that quickly there. I know here they are taking a very long time still. I do hope we can enact something similar here.
Interesting new law. I wonder if other states will follow suit. I'm actually surprised that it worked as I'm sure the bank was out of state, but I'm glad it did!
Congrats on a successful short sale closing!
Hi Diane - yes, I agree. Unfortunately short sales are more common these days that we'd like them to be.
Hello Carole - I hope the law spreads nationwide as well - it prevents an unpleasant expereince of buyers having to wait very very long.
You are correct Mike - many lenders are out of state and we need to inform and fax them a copy of the law upfront from day one and see if they plan to obey it before we list :) There is a complaint form and fines for noncompliance - but we've never had to use them yet.
thanks to all for taking time to stop by and comment.
Sincerely,
Grace
Jeff and Grace - Short sales are still anything but short here in Virginia. i wish our lawmakers would take a tip from your state.
Hi Pam - I'm surprised more states don;t follow suit so to speak....we have about one call a week inquiring about short sales (buyers and sellers) they are not as timely as they once were in 2007.
we do the homework upfront before we list and the shortest closed this year is 34 days from multiple offers and the longest 13 weeks back in 2007 before the new law went into affect - nowadays they are much better:)