Ok, so the pun in the heading is really not about the discount in debt, but the time line of a short sale, duh!  I like playing with words because it is the only thing I can manipulate successfully.  So, the issue is still the same.  If you have ever tried a short sale or have been on the back side of one, you probably have dealt with some serious time delays.  In fact it is probably what makes you not want to try them.  That is if you are not the one needing one (before you are faced with a foreclosure).  Unfortunately, if you are not specializing in these or you do not know how to “play by the banks rules” then you most definitely will fall into the “victim category” and probably left with many scars.  I have mastered my operation to handle the short sale from start to finish in less than half the time than most attempts.  I have found that when preparing for the necessary steps, that each one done correctly can benefit the entire process with a successful outcome.  The one big difference in how I will do them versus 98% of all others….I make offers on all cases!  How can I do that?  I have a property investment company (buyer) that will make offers on the property.  If the offer is accepted then the short sale is bought!  If it is rejected we still can renegotiate the offer, but if it is something that the investment company cannot/will not buy, they have the rights to either buy and resell (for a profit) or step out of the way completely and have it sold for retail 9to the end buyer).  The big thing is that the offer is what stimulates the short sale process.  Without it the bank cannot begin the process.  The bank(s) need several months to work their process (see “playing by the banks rules”) to determine if the offer is worth it or not.  The only way they can do that is to get a accurate value of the property, which you will have to support or force them to get it (interior BPO).  Miss these steps and you can basically expect to be off the mark with your offer, and they will reject it.    After doing over 100’s of cases we now know the positioning of the short sale with the lender so well, that we can predict if we will get an approval or not.  We also know that it will make for a quick decision on whether to buy and hold, buy and resell, or have it sold (step out of the middle).  In short here is the steps and the timeline:

Day 1: Full packet submission to lender (with offer)

Week 2: Assigned to Negotiator

Week: 3 Interior BPO ordered

Week: 4 Confirm receipt of the BPO and await review

Week: 6 Decision on original offer and the BPO negotiations begin

Week: 7-8 Counter offers to determine the final price & if investment company will purchase, purchase & resell, or step out and retail sale

Week: 9 Verbal approval / Market for sale

Week: 10-12 Written approval

Week: 14-16 Purchase and or resell

Case closed.

** There may timelines that can be extended due to several steps being delyed, but this is the ideal process doing the short sale process as I had mentioned.  I welcome comments and feedback.

As always, Keep it short.  Mike

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