Thank you so much for constantly reminding us of the November challenges. Will you do a post for us in Sept to remind everyone again?

I’d highly recommend that RE Agents consider having their purchases close by mid-November instead of risking missing the 11/30 date AND the added stress with the volumes that may be taking place.

Mortgage originators should probably keep this in mind if they have refi’s closing towards the end of November…might want to close first part of December instead…the cost of a slightly longer lock will be worth the reduced headache for you and your clients. Escrow companies will have to (and I think always should) prioritize purchase closings over refi’s.

Good point. The $8K credit may end up being the tail wagging the dog!

Interesting you should characterize it as borrower “flaking” in month three…so what is a reasonable and respectable waiting period? The wording suggests longer.

It’s all about managing expectations, and finding the right opportunities, like the one you described.

They gotta be out there.

Do listings ever reflect that kind of opportunity?

“Short Sale Preapproved at Listed Price, Previous Buyer Flaked in 3rd Month!!!”

That could be an attractive MLS headline

Lending programs come and go (more going, lately), lending guidelines change (mostly more restrictive), and we can never assume that what is available today will be available indefinitely (Option Arms, stated income, 100% financing, not sure we knew they were going away back in 2005).

Of course, it is always possible that something better will come along tomorrow, and I do like to remain hopeful, but cautious.

Make the best decision you can, live with it, make another. Repeat, as long as you are able.

If the seller already had an offer and the buyer flaked in month three…the next buyer could go quick. So it’s a case by case scenario.

I have one I started the other day that I expect to go fast because:

1) The lienholder is a local WA Bank

2) The lienholder already approved one, but the previous buyer walked.

It’s not a case of averages, as that will lead people to walk away from all short sales. The prices obtained for a buyer via a short sale are often (not always) too good to write them all off as “too late”.

In many cases the savings is well, well, WELL over the $8,000 credit. So let’s keep our heads in the game here.

Timely!

What is the average in this area for a short sale approval and closing?

In my experience, it is 4 plus months (one is still pending after 4 months). I do not have enough data to establish an average.

But, if it is is 4 months, we are getting near the limit today!

Good call!

Until we get final word on that, we do have to act as if November 30 is the cutoff. Many erroneously think it ends December 31, so we need to get a reminder in there sometime in September, unless it’s extended by then.

I have an awesome short sale story to tell…if it closes. A couple of them. But one in particular about a young man whose agent wouldn’t put a short sale offer in for him. I hope he gets it…was signed around yesterday and Lynlee’s working on the HUD 1 for the lien holder.

In a short sale a buyer usually reserves the right to cancel anytime prior to lienholder approval. Sometimes we “park” at a SS and keep looking, and move over to a better option IF one comes along.

The $8,000 credit is great…but buying the wrong house isn’t worth $8,000. You go for the house you want. No one should be putting the $8,000 credit ahead of the other aspects of buying a home.