The short sale process which has been taking 120 to 180 days will take 75 to 120 days this year. The main reason is the banks now have personnel and systems in place. Bank of america, for instance, allows agents to input their short sale packages directly into a computer based system.
There will still be plenty of short sales since property values have not increased in most areas and thus many many people are upside down ( under water as it is also known).
The effect of short sales has shown to be minor on one’s credit report , especially as compared to a foreclosure or bankrupcy. In most cases, if purchase money is being shorted, the banks will not be able to go after the borrower down the road. That said it is still best to get the “full and complete settlement” language in the approval letter from the mortgagor and get advice from your accountant and attorney.
Check back frequently as I do talk about short sales frequently. Also, you will get some insights on loan modifications, foreclosure and sometimes just plain old sales and listings.
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