Short Sale-What to expect?

[Jodi M.]

We wrote an offer tonight on a house listed on the MLS as being subject to short sale approval. It states that the selling price will be approved by the lender within 48hrs. If we agree on a price with the owner what should we expect from the lender? My agent wrote it for a 60 day closing but I've heard it can take up to 6 months or more. What are the lenders looking for in the offer and what are the chances of closing in the 60 days? Thanks in advance for any ideas.

[Wayne Brooks]

There's only two possible ways a bank will respond to price within 48 hours, and your agent should have verified.
1) If the loan was bought as part of pool by one of the funds at a huge discount, and their exit strategy is to dispose ASAP.
2) If another short sale just fell apart on this house, and they're trying to "slide another buyer in" before the approval deadline expires.

Either one is not likely.
For a normal short sale you need to allow 90-120 days for approval, then 30-45 to close.