Why do short sales take so long?

.There is no one real answer to this question. There can be many different reasons why a short sale can take long. I have seen short sales completed in 45 days from beggining to end. I've seen short sales go for 15 months before they sell. The average time for short sale negotiations is from 4 to 6 months. One of the reasons why short sales take long is because some buyers walk away from the deal after the approval letter has been issued. Some of the reasons buyers walk away is because they either found another home during the negotiation process or simply don't qualify for the loan. It takes an experienced agent to know and understand how to locate these buyers and keep them in the game as long as it takes. When the buyer walks away another buyer must be put into place and the file re submitted. If this is to happen more than once, the process continues to lengthen.

Another reason is because the home owner has 2 or more mortgages. If this is the case both mortgages must be negotiated and agree to release the lien at the same time. Again this takes an experienced short sale negotiator to accomplish this. If the first mortgage gives an approval letter and the second is still reviewing the file, The first approval letter may lapse and would have to restart the file all over again. Many banks are starting to get the hang of short sales and are starting to process them a bit faster. Expect to see changes in the near future as far as procedures that institutions must follow to successfully finish a short sale. Bottom line is that if you hire the right agent that has the right people working for him or her, a short sale should not drag out for months. An experienced agent such as us here at Utah Realty Pro have techniques used to speed up the short sale process. Contact us for a free confidential consultation