How long will the process take? This is a complicated question that depends on both the homeowner’s and mortgage lender’s situations. The first consideration during the short sale process is whether the homeowner has received a Notice of Default (NOD). NOD’s are sent to homeowners 90 days after missing their first mortgage payment. This process ends with the house being sold at a Trustee’s Sale 90 days after the homeowner receives a NOD (unless payments are made). Mortgage lenders can delay the mortgage foreclosure process if the homeowner has a valid contract for sale on the home.
Average short sales can be anywhere from a 2-6 month process from the time of the accepted purchase contract. It is unclear why or how the mortgage short sale process takes that long, but the most common answers seem to be:
- increasing numbers of short sales are keeping mortgage lenders very busy
- mortgage lenders who are already losing money are unlikely to hire additional help to process short sales
A short sale can be processed in less time, but is dependent on the mortgage lender and how quickly they respond and process it. It’s definitely important to get the mortgage lender all short sale information they require. As short sale process specialists we constantly follow up and help the mortgage lender process the file.