Short Sale Process and Timeline

A short sale can take 45-150 days, on average, to close. Every bank is different
and has its own internal processes. The following is a timeline that outlines a
simple short sale.
Short Sale Process and Timeline;
Property is Listed
Foreclosure dates are verified
Authorization and Required Documents are obtained from the seller
 We can not start the short negotiations without a complete file. All
documents must be provided before the file will be accepted.
Offer is Received (1-30 days if not offers are received then price
adjustment is necessary)
Short sale package is completed and sent to the bank(s)
 Fax confirmation is received
 Notes are published to website for authorized parties
Banks are contacted to verify receipt of short sale package
 Confirmation can take 3-15 days from original send date of package
Banks are contacted to verify package is complete and no additional
documentation is needed
 These calls are made weekly until a negotiator is assigned
 When any items are needed or need to be updated, agent and
homeowner will be contacted
Banks orders BPO/interior valuation
 This will assist the bank in determining whether or not the offer is
within fair market value
 This process can take 2-3 weeks
 The bank is called weekly until verification of values have been
Negotiator is assigned (can take up to 60 days to get to this point)
 Depending on workloads and bank policies it can be 30-60 days or
longer before a negotiator reviews the package for a decision.
 Negotiator is contacted for status updates weekly
File goes into review with the Negotiator
 Bank issues approval, counter offer or decline at negotiator level
 If additional terms are requested additional negotiations will take place
Bank issues final approval (usually 90-120 days)
Escrow period begins
 Usually 30 days longer until close of escrow