Why do Short Sales Take so Long to Close?

Daniel Manzano

Daniel Manzano

Many of us Real Estate industry professionals know that a Short Sale transaction can take months for it to be approved and closed. Nevertheless, we have had Short Sale approvals in less than 10 days. But, the reality is that Short Sales usually take three to four times as much as a regular sale to finally get to the closing.

From the time the Realtor actually gets the property under contract to the time the Lender approves, it could take anywhere from 30 days to 6 months, depending on how fast the Borrower provides critical information for Lender and Investor approval. Even then, you still have one more variable to account for which is the Buyer waiting for all this time to get the contract approved by the Lender. For this, setting the expectations is a key factor in any short-sale transaction.Buyers Expectations:

Buyers who make an offer on a short-sale property need to know that Lenders have to “reverse underwrite” a short-sale and make sure that they are allowing the sale to happen close to market value. I say “reverse underwrite” because instead of determining affordability, they will look for “un-affordability”. They will check the Seller’s financials to verify that they can’t afford the house anymore and consequently, they will order a Price Opinion from a Broker or Certified Appraiser, commonly known as BPO (Broker’s Price Opinion) to make sure the house is being sold close to market value. If the offer is too low compared to what is owed, it will make more financial sense to the Lender to just foreclose the property and re-sell it as an REO (Bank-Owned Property). All this will happen while the Buyer is still waiting for a response so it is very important to set the expectations correctly from the beginning to avoid losing the Buyer close to the end of the process.

Sellers Expectations:

On the other hand, it is important to also educate the Seller and set the expectations with them from the beginning. They need to understand that the Lender takes its time responding, but when they do, they usually give a 72 hour timeframe to respond or provide the missing documentation. If the documentation is not provided within the specified timeframe, it usually ends up in a closed file and countless work-hours lost. Another common situation that is happening very often is Borrowers being served with foreclosure paperwork from either the Lender or Homeowner’s Association while the short-sale is being processed. It is crucial to let them know that this might happen so that they are prepared for it and receive the documents knowing that they are in the best hands. Foreclosure and short-sale are parallel processes and one does not cancel the other. Sometimes a short-sale might delay a final sale date, but it will definitely not stop the Lender from starting the foreclosure proceedings.

About the author:

Daniel Manzano is the Managing Director of Best Beach Title. Best Beach Title approves hundreds of short sales on a monthly basis and our success comes from educating not only the seller but also the buyer and everybody else involved in the transaction. We believe that setting the right expectations is the most crucial part of a short sale and that is why we go the extra mile to communicate every step of the process. There are many hours involved in processing a short sale and the last thing you want is a Seller or Buyer walking away because the expectations were not set correctly.

You can contact Daniel at 1.888.352.3006, by email at
dmanzano@bestbeach.net or visit his website: BestBeachShortSale.net

Print Friendly, PDF & Email

139 comments to Why do Short Sales Take so Long to Close?

  • Nice read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch as I found it for him smile Therefore let me rephrase that: Thank you for lunch! “Feeling passionate about something is like getting a peak at your soul smiling back at you.” by Amanda Medinger.

  • Good write-up, I am regular visitor of one’s website, maintain up the nice operate, and It is going to be a regular visitor for a long time.

  • whoah this blog is fantastic i love reading your articles. Keep up the good work! You know, a lot of people are looking around for this info, you can aid them greatly.

  • A formidable share, I just given this onto a colleague who was doing a bit of analysis on this. And he in reality bought me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I really feel strongly about it and love studying more on this topic. If attainable, as you turn into expertise, would you thoughts updating your blog with more details? It’s highly useful for me. Huge thumb up for this weblog publish!

  • I will right away snatch your rss as I can’t find your email subscription link or newsletter service. Do you’ve any? Please allow me understand in order that I could subscribe. Thanks.

  • I have been examinating out a few of your posts and it’s clever stuff. I will make sure to bookmark your blog.

  • Great web site. Plenty of helpful info here. I am sending it to some friends ans additionally sharing in delicious. And of course, thank you for your sweat!

  • Would you be fascinated about exchanging links?

  • Respect to author, some good selective information.

  • Hi! Do you know if they make any plugins to protect against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?

  • … [Trackback]

    […] Read More on that Topic: stlouisrealestatenews.com/real-estate-market/why-do-short-sales-take-so-long-to-close/ […]

  • I do not even understand how I ended up right here, but I believed this put up was good. I do not recognise who you’re but certainly you are going to a well-known blogger if you happen to aren’t already ;) Cheers!

  • Hey, you used to write magnificent, but the last few posts have been kinda boring?K I miss your super writings. Past several posts are just a bit out of track! come on!

  • My coder is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the costs. But he’s tryiong none the less. I’ve been using Movable-type on various websites for about a year and am nervous about switching to another platform. I have heard great things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any help would be really appreciated!

  • I have to show my appreciation for your kind-heartedness for those people that absolutely need guidance on the theme. Your real dedication to getting the solution along appears to be amazingly productive and has specifically encouraged guys and women just like me to arrive at their goals. Your entire interesting hints and tips denotes a whole lot to me and much more to my colleagues. Thanks a lot; from everyone of us.

  • I am not very fantastic with English but I find this really easygoing to understand.

  • I was very pleased to find this web-site.I wanted to thanks for your time for this wonderful read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you blog post.

  • Whats Taking place i am new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I hope to contribute & help different customers like its aided me. Great job.

  • After research a few of the weblog posts on your website now, and I really like your approach of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls take a look at my web page as effectively and let me know what you think.

  • I keep listening to the news broadcast lecture about getting free online grant applications so I have been looking around for the top site to get one. Could you tell me please, where could i find some?

  • Hello, you used to write fantastic, but the last several posts have been kinda boring?K I miss your super writings. Past few posts are just a little bit out of track! come on!

  • You completed several good points there. I did a search on the matter and found nearly all folks will agree with your blog.

  • … [Trackback]

    […] Read More Information here on that Topic: stlouisrealestatenews.com/real-estate-market/why-do-short-sales-take-so-long-to-close/ […]

  • It’s the best time to make some plans for the long run and it is time to be happy. I have learn this put up and if I may I want to suggest you few attention-grabbing issues or tips. Perhaps you could write subsequent articles regarding this article. I desire to read more issues about it!

  • he blog was how do i say it… relevant, finally something that helped me. Thanks

  • Magnificent web site. Plenty of helpful information here. I’m sending it to some pals ans additionally sharing in delicious. And naturally, thank you for your effort!|

  • … [Trackback]

    […] Find More here on that Topic: stlouisrealestatenews.com/real-estate-market/why-do-short-sales-take-so-long-to-close/ […]

  • Greetings I am so glad I found your blog, I really found you by error, while I was browsing on Yahoo for something else, Nonetheless I am here now and would just like to say cheers for a incredible post and a all round enjoyable blog (I also love the theme/design), I don’t have time to look over it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the awesome b.|

  • Hi there! Do you know if they make any plugins to safeguard against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any tips?

  • I’d have to examine with you here. Which is not one thing I usually do! I take pleasure in reading a post that may make folks think. Additionally, thanks for permitting me to comment!

  • informative article

  • If you want to increase your know-how simply keep visiting this web site and be updated with the hottest news update posted here.|

  • … [Trackback]

    […] Information to that Topic: stlouisrealestatenews.com/real-estate-market/why-do-short-sales-take-so-long-to-close/ […]

  • Glad to be one of many visitors on this awesome website : D.

  • Definitely, what a great blog and educative posts, I definitely will bookmark your blog.Have an awsome day!

  • You got a very wonderful website, Glad I detected it through yahoo.

  • url

    Its great as your other content : D, appreciate it for putting up. “I catnap now and then, but I think while I nap, so it’s not a waste of time.” by Martha Stewart.

  • Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but other than that, this is fantastic blog. A great read. I’ll certainly be back.|

  • Pour perdre du poids rapidement, il s’agit évidemment de revoir dans un premier temps ses habitudes alimentaires.

  • I don’t usually comment but I gotta state appreciate it for the post on this special one : D.

  • Thankyou for this howling post, I am glad I detected this site on yahoo.

  • I got what you intend,saved to favorites, very decent internet site.

  • Hi there very nice site!! Man .. Beautiful .. Superb .. I’ll bookmark your blog and take the feeds alsoKI’m satisfied to seek out so many useful information here in the put up, we’d like work out extra techniques in this regard, thanks for sharing. . . . . .

  • Wow, fantastic blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your web site is fantastic, as well as the content!

  • I was just searching for this info for a while. After six hours of continuous Googleing, finally I got it in your site. I wonder what’s the lack of Google strategy that do not rank this kind of informative websites in top of the list. Normally the top websites are full of garbage.

  • Thank you, I’ve recently been looking for information approximately this subject for a long time and yours is the greatest I’ve found out till now. However, what concerning the bottom line? Are you positive in regards to the supply?

  • I’m not sure where you’re getting your info, but good topic. I needs to spend some time learning much more or understanding more. Thanks for magnificent information I was looking for this information for my mission.

  • Im no longer positive the place you are getting your info, but good topic. I needs to spend a while finding out much more or figuring out more. Thanks for wonderful information I used to be on the lookout for this info for my mission.

  • Thank you a lot for sharing this with all people you really realize what you are talking approximately! Bookmarked. Please also discuss with my website =). We could have a hyperlink trade agreement among us!

  • I do like the manner in which you have framed this matter and it does present us a lot of fodder for thought. On the other hand, because of just what I have experienced, I simply trust as the feed-back pack on that folks keep on issue and in no way get started upon a soap box of the news du jour. Still, thank you for this exceptional piece and whilst I do not really agree with it in totality, I respect the standpoint.

  • Very nice article and straight to the point. I am not sure if this is truly the best place to ask but do you people have any thoughts on where to hire some professional writers? Thx :)

  • Your style is so unique compared to many other people. Thank you for publishing when you have the opportunity,Guess I will just make this bookmarked.2

  • I gotta bookmark this internet site it seems very beneficial very useful

  • Hey, you used to write wonderful, but the last several posts have been kinda boring… I miss your tremendous writings. Past several posts are just a little out of track! come on!

  • hi!,I love your writing so so much! percentage we be in contact extra about your article on AOL? I require a specialist in this house to solve my problem. May be that’s you! Looking forward to see you.

  • Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your website is magnificent, let alone the content!

  • With havin so much content and articles do you ever run into any problems of plagorism or copyright infringement? My website has a lot of completely unique content I’ve either authored myself or outsourced but it seems a lot of it is popping it up all over the internet without my authorization. Do you know any solutions to help prevent content from being ripped off? I’d certainly appreciate it.

  • Hey! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing many months of hard work due to no back up. Do you have any methods to prevent hackers?

  • Hi there! This is kind of off topic but I need some guidance from an established blog. Is it difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about creating my own but I’m not sure where to begin. Do you have any ideas or suggestions? Appreciate it

  • Heya i’m for the first time here. I came across this board and I find It truly useful & it helped me out much. I hope to give something back and aid others like you aided me.

  • Today, I went to the beachfront with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!|

  • I’m still learning from you, as I’m making my way to the top as well. I definitely love reading all that is posted on your website.Keep the information coming. I liked it!

  • whoah this blog is wonderful i love reading your posts. Keep up the great work! You know, lots of people are searching around for this information, you could aid them greatly.

  • Simply wish to say your article is as surprising. The clearness in your post is just great and i could assume you’re an expert on this subject. Well with your permission let me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please carry on the rewarding work.|

  • I am glad to be one of several visitants on this outstanding internet site (:, thankyou for posting.

  • I would like to point out my love for your kindness giving support to those who absolutely need help on this important matter. Your real commitment to passing the message along ended up being astonishingly advantageous and has in every case allowed workers much like me to achieve their endeavors. Your personal valuable tips and hints means this much to me and further more to my fellow workers. Best wishes; from everyone of us.

  • bookmarked!!, I love your site!|

  • After I initially commented I clicked the -Notify me when new feedback are added- checkbox and now every time a comment is added I get 4 emails with the same comment. Is there any method you can remove me from that service? Thanks!

  • Please let me know if you’re looking for a article writer for your site. You have some really great posts and I believe I would be a good asset. If you ever want to take some of the load off, I’d love to write some articles for your blog in exchange for a link back to mine. Please blast me an email if interested. Many thanks!

  • Would you be inquisitive about exchanging hyperlinks?

  • Hello. magnificent job. I did not anticipate this. This is a splendid story. Thanks!

  • You could certainly see your enthusiasm in the work you write. The world hopes for even more passionate writers like you who are not afraid to say how they believe. Always go after your heart.

  • Great article. I will be experiencing many of these issues as well..|

  • Does your blog have a contact page? I’m having problems locating it but, I’d like to shoot you an e-mail. I’ve got some ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it develop over time.

  • I was suggested this blog by means of my cousin. I am not certain whether or not this publish is written by means of him as nobody else realize such certain approximately my problem. You are incredible! Thanks!|

  • You’re so cool! I don’t believe I’ve truly read through a single thing like this before. So wonderful to discover somebody with some unique thoughts on this subject matter. Seriously.. many thanks for starting this up. This web site is something that’s needed on the internet, someone with a little originality!|

  • Excellent post. I was checking constantly this blog and I’m impressed! Extremely useful information specially the last part :) I care for such info a lot. I was seeking this certain info for a long time. Thank you and good luck.

  • Thanks for all your efforts that you have put in this. very interesting info .

  • I have read so many articles regarding the blogger lovers but this article is in fact a fastidious paragraph, keep it up.|

  • Your home is valueble for me. Thanks!…

  • Wow that was odd. I just wrote an extremely long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say excellent blog!|

  • A person essentially help to make seriously posts I would state. This is the very first time I frequented your web page and thus far? I surprised with the research you made to make this particular publish incredible. Magnificent job!

  • Excellent article. Keep posting such kind of info on your blog. Im really impressed by your blog.

  • Great V I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your client to communicate. Excellent task..

  • Good post. I be taught one thing more challenging on totally different blogs everyday. It is going to at all times be stimulating to read content from other writers and practice slightly one thing from their store. I’d desire to use some with the content material on my weblog whether or not you don’t mind. Natually I’ll offer you a link on your web blog. Thanks for sharing.

  • I have been exploring for a little bit for any high quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this site. Reading this information So i am happy to convey that I’ve an incredibly good uncanny feeling I discovered exactly what I needed. I most certainly will make certain to don’t forget this website and give it a glance regularly.

  • Aw, this was a very nice post. In idea I would like to put in writing like this additionally – taking time and actual effort to make a very good article… however what can I say… I procrastinate alot and not at all appear to get something done.

  • I have been browsing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all website owners and bloggers made good content as you did, the internet will be much more useful than ever before.|

  • Hey! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My blog looks weird when viewing from my iphone 4. I’m trying to find a template or plugin that might be able to resolve this issue. If you have any suggestions, please share. Many thanks!|

  • I’ve been absent for a while, but now I remember why I used to love this site. Thanks, I’ll try and check back more frequently. How frequently you update your site?

  • Why visitors still make use of to read news papers when in this technological globe all is presented on web?|

  • Wow! This blog looks exactly like my old one! It’s on a completely different topic but it has pretty much the same layout and design. Excellent choice of colors!

  • Today, I went to the beach with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!|

  • My partner and I stumbled over here from a different website and thought I should check things out. I like what I see so now i’m following you. Look forward to looking into your web page again.|

  • You really make it appear really easy along with your presentation however I find this topic to be really something that I feel I would by no means understand. It sort of feels too complex and very vast for me. I am looking ahead for your next put up, I will try to get the dangle of it!

  • Excellent website. A lot of useful info here. I¦m sending it to several friends ans additionally sharing in delicious. And of course, thank you to your effort!

  • I do believe all the ideas you’ve presented on your post. They’re really convincing and will definitely work. Nonetheless, the posts are very quick for beginners. May you please lengthen them a little from subsequent time? Thanks for the post.

  • Magnificent website. A lot of useful information here. I am sending it to several friends ans also sharing in delicious. And of course, thanks for your effort!

  • Keep functioning ,splendid job!

  • Some truly excellent articles on this internet site, appreciate it for contribution.

  • Your style is so unique compared to many other people. Thank you for publishing when you have the opportunity,Guess I will just make this bookmarked.2

  • I like this web blog so much, saved to my bookmarks.

  • Hello friends, fastidious piece of writing and good arguments commented at this place, I am really enjoying by these.|

  • Hi! Would you mind if I share your blog with my twitter group? There’s a lot of folks that I think would really appreciate your content. Please let me know. Thank you

  • After research a few of the weblog posts in your website now, and I truly like your method of blogging. I bookmarked it to my bookmark web site listing and will be checking back soon. Pls check out my web page as well and let me know what you think.

  • Thanks for finally writing about > blog_title < Loved it!|

  • Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a little bit, but other than that, this is excellent blog. An excellent read. I’ll certainly be back.

  • Normally I do not learn article on blogs, however I would like to say that this write-up very forced me to take a look at and do so! Your writing style has been surprised me. Thank you, very nice article.

  • I am not real excellent with English but I come up this real easygoing to read .

  • whoah this blog is wonderful i love reading your articles. Keep up the great work! You know, lots of people are hunting around for this info, you can aid them greatly.

  • Hello, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam feedback? If so how do you prevent it, any plugin or anything you can advise? I get so much lately it’s driving me insane so any support is very much appreciated.

  • This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.

  • Amazing! This blog looks exactly like my old one! It’s on a totally different topic but it has pretty much the same layout and design. Wonderful choice of colors!

  • Hello there, just became aware of your blog through Google, and found that it’s truly informative. I am going to watch out for brussels. I will appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

  • You really make it appear so easy along with your presentation however I find this matter to be really one thing that I think I’d by no means understand. It seems too complex and extremely huge for me. I’m taking a look forward for your subsequent post, I will attempt to get the dangle of it!

  • Thank you for your own labor on this web page. Kim take interest in managing research and it’s really obvious why. Most people notice all relating to the compelling means you convey simple tactics via this web site and therefore welcome response from some other people on the concern so my girl is in fact becoming educated a great deal. Enjoy the remaining portion of the year. You have been doing a first class job.

  • With havin so much content and articles do you ever run into any issues of plagorism or copyright violation? My site has a lot of unique content I’ve either written myself or outsourced but it appears a lot of it is popping it up all over the internet without my authorization. Do you know any solutions to help reduce content from being stolen? I’d truly appreciate it.

  • I am now not positive where you’re getting your information, but good topic. I must spend a while finding out more or figuring out more. Thank you for magnificent information I was searching for this information for my mission.

  • When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with the same comment. Is there any way you can remove people from that service? Thanks!

  • of course like your web-site however you have to test the spelling on several of your posts. Many of them are rife with spelling problems and I in finding it very bothersome to inform the truth then again I will definitely come back again.

  • I like what you guys are up too. Such smart work and reporting! Keep up the superb works guys I’ve incorporated you guys to my blogroll. I think it’ll improve the value of my website :).

  • Some really fantastic blog posts on this site, thank you for contribution. “Gratitude is not only the greatest of virtues, but the parent of all others.” by Cicero.

  • There is visibly a bunch to identify about this. I think you made various good points in features also.

  • Real informative and fantastic body structure of subject material, now that’s user pleasant (:.

  • Undeniably believe that which you stated. Your favorite reason seemed to be on the web the simplest thing to be aware of. I say to you, I certainly get irked while people consider worries that they plainly don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>