If you are selling your home, your underlying wish may be to get an offer from a buyer the first weekend the property is on the market. No one likes to deal with showings and the frustration of waiting for an offer. If a homeowner is in foreclosure or knows the property will be sold as a short sale they may be even more anxious to get an offer and finish the whole ordeal.
In a short sale you could possibly sell your home too fast. Some investors require that a home be listed for a minimum of 5 days before accepting an offer and those 5 days must include an entire weekend so it is safer to assume a minimum 7 days of marketing. If a seller accepts an offer in less than 7 days, the short sale lender may reject the offer and require that the property be placed back in active status until their listing time frame has been met. Placing the property back on the market for 7 days may not be a huge issue but sometimes the short sale lender will not catch the marketing time until 30 days or more after your contract acceptance. The seller could lose their buyer who now needs to submit a new offer.
On FHA loans, Mortgagee Letter (ML) 14-15 states “effective October 1, new Housing and Urban Development (HUD) guidelines require agents to have the property listed on the Multiple Listing Service (MLS) for a minimum of 15 days before any purchase contract can be reviewed by the servicer.”
According to Bank of America, “the 15-day requirement starts when the property began listing on MLS at the appropriate price in relation to the Federal Housing Administration (FHA) “as-is” appraised value.”
In conclusion, it is important to work with real estate professionals that understand the short sale process. We are certainly happy to help!