How long does a Short Sale closing take? If you make an offer on a short sale property, be prepared to wait. Banks are notorious for taking as long as several months to respond to short sale offers. Some experts recommend that you give the lender a deadline to reduce the wait time. It's hard to say whether this strategy will really spur the bank to action, but it may be worth it from your perspective if you can't handle the stress of waiting months for a response. However, if the bank hasn't actually approved the short sale yet at the time of your offer, implementing a deadline will be useless as it may take several months just for the seller to reach a short sale agreement with the lender. And even if such an agreement is struck, there is no guarantee that the short sale will go through.

Tips About Short Sale Real Estate Agents Experience - Make sure your agent is experienced with short sales. Because of the complexity of this type of transaction, you don't want to work with someone who is unfamiliar with the process. Also, make sure your agent is willing to work with you on a short sale. Some agents won't want to get involved due to bad past experiences or the poor reputation of short sales. Not only are short sales more work for agents, they sometimes offer less of a commission. The bank may not be willing to pay the listing agent the usual 5-6% commission because it is already taking a loss, and because the buyer's agent gets a percentage of that percentage, he or she will see even less money.

Types of Short Sales Buying or Selling Transactions

Short Sale Transactions - A real estate short sale is when a home owner sells their property for less than what they owe on the mortgage, and the lender gives their permission to do this by forgiving the difference and/or releasing the mortgage lien on the property. Short sales are very common in many markets because of negative home owner equity due to the steep decline in house values.

Foreclosure is a dark cloud that hangs over your life and your credit even after it is over. In contrast, short sales are deemed a "lesser crime" by banks and lenders; a smart choice if keeping your home isn't an option.