In today’s fast paced world, we all want everything now! Although there are only a few things in life we have to wait for, these things are often worth the wait. This is the case when it comes to real estate transactions. Although some real estate transactions will go off without a hitch and the contracts can be signed within a matter of days, this is usually not the case when it comes to Minnesota short sale transactions.
What can you expect when it comes to time and a short sale?
On average, MN short sales will take anywhere from 60-120 days to complete. However, this is a rough estimate and, as more and more families look for short sales as an option, you can expect the wait period to continue to lengthen.
Reasons for the Lengthy Short Sale Transaction Period
So what’s taking so long? One of the reasons you can expect a long wait period when it comes to Minnesota short sales is simply because of the current real estate market. According to the National Association of Realtors, over 50% of properties sold are short sale or REO properties. What this means from a lending point of view is that there are so many different short sale packages coming in each day that is can take a while to get to all of them. For the short sale seller and the short sale buyer, there is nothing to do but wait.
Another reason for the long wait in Minnesota short sale transactions is because there is a lot of paperwork and organization involved in the process. And, finally, short sales in Minnesota take so long because there are so many steps involved. Below is a timeline for the typical short sale process in MN.
A Break Down of the Short Sale Transaction Timeline
First of all, you will need to get authorization on file with the lender. This can take around 2 days. Next you and your real estate short sale agent will need to compile all the short sale documentation which can take anywhere from 7 to 14 days. You can expect another 3 to 7 days for the short sale package to be filed by the lender and another 10 to 14 days for your package to be assigned to a negotiator in the lending company. These are only the first steps involved.
Next the BPO will need to be ordered and scheduled which will take anywhere from 19 to 30 days to do. The BPO will need to be sent to the negotiator who will then be in touch with the short sale agent about the negotiation or approval of the short sale. All of this can take between 30 to 45 days to complete. And thus, your grand total for the transaction process is between 70 and 107 days to complete the entire process.
You will notice that most of the waiting time occurs due to the lending company, BPO and negotiation process and, unfortunately, there really is no way to speed this up. It all depends of the efficiently and the availability of your lending company at the time of your short sale transaction.
