Time Frame of Short Sales by Major Loan Servicers ranked by Deutsche Bank

Posted by Paul Francis on Saturday, July 10th, 2010 at 5:40am.

Major Loan Servicers Ranked in Time to Complete Short Sale Process

So you started up that short sale process with Bank of America and received their welcome letter with a brief overview of the process: (Taken from an Actual Bank of America Short Sale Welcome Letter)

Bank of America Short Sale Welcome Letter

"You can Expect the Process to Last 45 to 90 days to complete...."

Six months later and reality hits just like the Las Vegas homeowners interviewed by Channel 13 on Las Vegas Homeowners Frustrated with Short Sales.

Somewhere along the way, you may have gotten the impression that a short sale was going to be short... It could have been from a PR campaign or some overzealous promises made by somebody inexperienced with the process.

Regardless... the good news is that someone Finally did a study on the average time frames of the Major Loan Servicers to close a short sale so buyers (and hopefully their agents) can be a little more realistic about the time frame of what it REALLY takes to get to closing. Also worth noting (but no surprise) is that Short Sales actually do receive more money back to the investors then if the property ends up as a REO (aka Bank Owned) home.

READ the Deutsche Bank Study Here

According to the Study, Loan Servicers time frames for Short Sales on Prime Mortgages were ranked:

#1 - GMAC - Average Time to complete a short sale = Roughly 6 months.

#2 - CitiMortgage - Average Time Frame to complete a short sale = Roughly 7 1/2 Months.

#3 - Wells Fargo - Average Time = Roughly 8 months.

#4 - Bank of America - Avg. Time= Roughly 11 months to complete a short sale.

Yes... I have my stories of completing a Las Vegas short sale from start to finish in 45 days. I also have some stories of Las Vegas short sales taking over one year to get an answer.

Remember... The snapshot of the Bank of America Short Sale Welcome Letter above... "Credit Reporting Will Continue While Your Loan is Under Review for a Short Sale"...

There are consequences to doing a short sale and if you have questions concerning Potential Legal and/or Tax consequences... you should seek the proper Legal advice or Tax Advice. This means an Attorney or a Tax Specialist. REALTORS giving Legal Advice or Tax Advice that are not Attorneys or Tax Consultants are a sign of Inexperience!! Big RED FLAG!

While I can give you basic guidelines concerning a Las Vegas Short Sale under Nevada Law.. Keep in mind NO Two Short Sales are the same. I've even done multiple short sales with the Same Owner and they were not the Same.

Regardless.. it's nice that somebody finally did a study to help avoid false expectations of the short sale process.

Paul Francis
Prudential Americana Group - REALTORS
Las Vegas Short Sales
702.592.3058

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1 Response to "Time Frame of Short Sales by Major Loan Servicers ranked by Deutsche Bank"

Las Vegas Homeowners Who Strategically Default About to See Stiff Penalties wrote:
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Posted on Wednesday, July 28th, 2010 at 7:13 AM.


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