3 Crucial Steps To Get Your Chase Loan Modification Approved
Applying for a loan modification can be frustrating especially if you do not have a clear picture of what to do. So if you are about to seek a Chase loan modification, read the following steps required by the lender and be guided. But remember, simply following these steps are not enough. You must satisfy their eligibility requirements.
Who Will Facilitate Your Chase Loan Modification Application?
You can apply for your loan to be modified yourself, but you may also seek the help of a loan modification company or through a representative of the Federal House Administration. If you opt to have a company process your application for you, you have to prepare to pay their fees. But if you decide to handle your loan modification yourself, the following steps recommended by Chase are essential to help you get underway.
Steps When Applying For Chase Loan Modification
1. Get in touch with the lender through their Loan Modification Department at 866-550-5705. Before you dial these numbers, make sure that you have kept your home loan number handy. Jot down any questions that you want to ask for a smooth phone conversation and so that you do not forget them. This phone conversation could take long and expect the representative to ask about your financial difficulty and may ask you reasons for why you are having a hard time paying for your monthly mortgage dues.
2. Gather the required documents:
Hardship letter explaining your financial circumstances that led to your difficulty in making your monthly mortgage dues.
Signed and accomplished statement summarizing your monthly budget
If you are employed:
2 latest pay stubs
If you are self-employed:
Bank statements of the last 4 months
Latest tax papers
3. Accomplish application form and send application package to Chase. Once you have done the previous actions, expect to receive a Chase loan modification application package. Accomplish the application form, attach the required documents as stated in the package and send them to Chase.
What Does Your Lender Look For In Your Chase Loan Modification Application
Needless to say, Chase would like to see all the documents they require to be in your application. They will study these documents to find out the kind of financial hardship that you are in and if it is permanent. That is why, if they will spot an expense on a luxurious car in the monthly budget you submitted, expect to get a “No”. Also pay particular attention when writing your hardship letter. Cite a job loss, an illness, a divorce, or other circumstances that have made a big unfavorable impact on your finances, making you unable to pay your monthly mortgage dues. Including the rate you would want to be paying in your letter would also be helpful. Work this out based on the planned monthly budget you submitted.
When you have sent the application package, expect to wait for as long as eight weeks before you would hear advice of whether or not your request has been approved.
Preparing a Chase loan modification request is simplified if you know what to do and what are required; and a complete application increases your chances of getting approved.
Loan Modification Scams Dressed Up As Loan Modification Services
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Circumspection In Choosing From Among Loan Modification Services
Generally, there are two types of loan modification companies: the legit and the scam. There are also two general types of consumers: the canny and the gullible. How you choose the firm that will help you re-work your loan will mainly tell what type of consumer you are. Get to know how these scams are pulled off by con artists to avoid being double-crossed by loan modification services that are actually scams.
Cracking Scams Cloaked As Loan Modification Services
Pseudo-Foreclosure Consultants. Be wary when dealing with some people who call themselves as foreclosure consultants but are actually charlatans, purveying ostensible services and programs to help financially distressed homeowners avoid foreclosure, but are in reality no more than tricks to bilk you of your limited funds. These snake oil salesmen usually lurk in the Internet waiting for their unsuspecting prey to voluntarily come to them. Homeowners seeking loan modification services are often easy targets. They operate simply by exacting substantial amount from their victims to cover for their services. However, after the agreement has been signed and the payment pocketed, the agency virtually does nothing, or worse suddenly disappears. As a result, you lose your home. Naturally, these swindlers have no plans of reimbursing you if your house gets auctioned. Complaints about these schemes swarm the State Attorney General’s office.
Unaffordable Modification Program. Another way con artists maneuver their tricks is by collecting money from the homeowner upon signing up, then registering the homeowner to a loan modification plan that he cannot afford, even if there is a big possibility that they can negotiate with the lender for a better agreement. These scheming companies make easy money by declaring that their job is done once they have gotten and presented the easiest modification available to the homeowner. Sadly, signing up for an unaffordable plan will not get you anywhere except even farther from your home.
Expensive Loan Modification Seminars Which Can Cost You Your Home. One more variation of the fraud is by plainly exacting exorbitant fees for loan modification seminars where homeowners are required to attend. These seminars are said to help in bargaining for more beneficial loan terms. If you do not attend such events, the scheming company will not do anything to help you save your home, and will even hold you responsible for losing your property.
Loan Audits. Some shady companies will also charge your for loan audits that are conducted by someone who is not even a qualified lawyer. Oftentimes, these audits are done and paid for in vain since the petitions that the homeowners are prompted to obtain are hindered by the expiration of the ruling of limitations for that certain case. You end up paying thousands of dollars just to be informed of what is ineffective in salvaging your home.
Alas, a lot of financially saddled homeowners are beguiled into signing up for these scams due to a lack of knowledge. They are thick on the ground, that is why, the different states are having a hard time in taking legal action and closing down these organizations. Hence, get to know a company offering loan modification services first, before signing up so that you do not add up to the statistics of victims.
Top 4 Reasons Why Your Citimortgage Loan Modification Request May Be Denied
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Know Your Chances Of Getting A Citimortgage Loan Modification
With the economic slump, paying for mortgage has become a struggle to many homeowners. That is why, a lot of them negotiate with their lenders to restructure their loan. Some get approved, while others are denied. Lenders reject proposals to rework terms due to a number of reasons. If you are considering seeking a Citimortgage loan modification, study these reasons so that you can gauge you chances of getting an approval.
Causes Behind Citimortgage Loan Modification Thumbs Down
Up-To-Date Payments. Paying regularly your monthly mortgage dues gives your lender the impression that you are not experiencing financial hardship. If you are not behind on your payments, chances are, your proposal for a loan adjustment may just get rejected. But do not get it wrong. It may be a bad idea to deliberately default on your payments just to be able to qualify for a Citimortgage loan modification. Doing so will mar your credit standing and risk your house to foreclosure. Refinancing may be a better option for you. With your good credit score, you may be able to avail of lower interest rate from a new loan.
Home Valued Is Greater Than Loan Amount. For your lender, this means that should they foreclose on your house, they can still resell it at a relatively good price. That is why, even if you submit enough documented proof that you lost your job or incurred losses in your business for some time, Citimortgage may decline your proposal.
Incomplete Requirements. A lot of Citimortgage loan modification requests go down the rejection bin because a certain financial document is missing, or you forgot to sign a particular document. So make sure that all the paperwork is there and all dotted lines are inked. Remember to prepare your pay stubs of the last two months, W2/tax return or year-end business statement (if you have a business) of the previous years, and personal bank statements for the last six months.
Unconvincing Hardship Letter. Your hardship letter should contain enough drama to melt hearts. Although lenders may appear unsympathetic, remember that they are human too. Concisely explain in your letter your why you could no longer afford your mortgage dues. State what financial jam led you to default. Also, if your house is in an area where foreclosures are rampant and values of houses are tailing off, highlight that in your letter.
To better your chances of obtaining a Citimortgage loan modification, understand where Citimortgage is coming from. Although they may want to help their mortgagors, the lender’s interest is foremost in their decision of whether or not to approve a request for loan readjustment.
Warning: Do Not Ignore These Loan Modification Red Flags
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Tough times call for tough measures. With the bleak economy and the wave of foreclosures, scoundrels will take advantage of people who are desperate or who lack the knowledge on how to handle their situation. Many of these rip-offs make money through loan modification scams. So if you are facing foreclosure, beware of people who offer too good to be true promises. It is a red flag of dishonesty.
You may have seen them on TV, the papers or radio and from the Internet through ads that promise you that they can absolutely rework your loan to make it more affordable. Some may have even discovered some means to get in touch with you and you are considering to take their offer. Before you sign up for anything or pay any upfront fees, consider these eight indicators of loan modification scams.
Loan Modification Scams Demand for Upfront Fees
From this alone, they are already breaking the law since foreclosure consultants and loan modification companies are prohibited from collecting any payments prior to delivery of their services.
Loan Modification Scams Will Ask You to Transfer Ownership of the House to their Firm
Common sense ought to make you think twice or even a hundred times about this request. Why should you agree to transfer the title of the property to them? It is akin to handing over your handbag to a robber without the robber pointing a gun at you. Do not be beguiled by their assurance that you will be able to repurchase or lease it.
Loan Modification Scams Will Advice You to Disregard Letters From Your Lenders
If there is one thing that you should be doing, it is to read the correspondence from lenders, get in touch with them, explain your hardship and try to negotiate for better terms.
Loan Modification Scams Will Ask You to Make Mortgage Payments to Their Company Instead of to Your Lender
Beware, you may find yourself in deeper trouble upon finding out that the payments you have sent to the so-called loan modification company did not make its way to your lenders. So if you are sending payments to your loan modification service provider, make sure that they disburse the payments to your lenders.
Loan Modification Scams Will Pressure You To Ink Documents Even If You Have Not Read Them Yet
When they use this ploy, they make you think that by signing these official documents, it is for your benefit. Unwittingly, you are, in fact, transferring ownership of your property to them. Do not fall victim to this flagrant act.
Loan Modification Scams Will Advice You Not To Take Counsel From An Attorney or Government-Approved Counselors
This is definitely a glaring red flag. What is wrong with consulting a lawyer or other counselors? When they do this, it is obvious that something is fishy. Consulting a lawyer or a government-approved counselor is what you may just need.
Loan Modification Scams Assure You of a Sure-Fire Loan Modification
If you have not yet discussed your situation with them, there is no way for them to determine whether or not you can get a loan modification, they cannot so much as tell whether or not a loan modification is right for you.
Loan modification scams are there for your money and nothing else, so before signing up for a loan modification service provider that you are not so familiar with, consider doing your research first about the company or better yet to learn about the process and try doing the tasks yourself in obtaining a loan modification.
The Snags In Buying A Short Sale
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The Price For Buying A Short Sale
Several people consider buying a short sale, be it as a primary home or as an investment, to take advantage of the typical rock-bottom pricing. Although you can potentially bring in big savings, a short sale can exact from you, among other things, your time and patience. The home you are eyeing to buy can become the rope in a tug-of-war involving more than two tugging rivals: you (the buyer), the bank (the lender), the seller (the homeowner) and the other buyers. However, if you still would want to try to purchase a home offered on short sale, stock your medicine cabinet with some aspirin as you may suffer some bouts of headache.
Headaches in Buying A Short Sale
Protracted Process. Short sales are notorious for their proneness to drag out. The lenders play a big role in this waiting game. First, banks must acquiesce in suffering a loss on the property before the process can get underway. Second, there must already be an offer from a prospective buyer submitted to the bank for the short sale to be considered in progress. A single offer is often not enough, banks will bide their time to wait for more enticing offers. If you are the first buyer to name your price, sit back, relax, grab some chips dashed with powdered patience as the lender keeps you in suspense for weeks or months before they can reply to your offer.
Thumbs Down To Your Offer. As the lender takes their sweet time sitting on their hands, more offers to buy the short sale are tendered while the property stays active on real estate and MLS listings. Chances are, the lender will be presented with a higher offer and settle on that one. This means that the weeks or months of waiting do not assure you of a positive reply for your initial offer.
Price War. Buying a short sale is not as easy as many think. It even may not be as cheap as most people expect. Yes, many are sold below market price. However, there are properties that actually sell more than their market value because of price wars as a result of banks waiting for more offers. This pushes the price up, sometimes higher than the market price.
As Is Condition. When buying a short sale, you can inspect the property. However, you have to know that the lender may ask you to ink an As-Is Addendum. When you have signed this, it means that you as the buyer, accept the home in its current state and the lender is free from the liabilities for any damages. So better make your inspection thorough to discover potential problems early on and factor it in when making an offer.
Do not be caught short when buying a short sale; know what to expect so that you can prepare for the drawn-out process, the possibility of a negative reply after months of waiting, and the price war, and be on the lookout for possible damages to the property that become your responsibility once you have bought it.
How To Clinch A Countrywide Short Sale
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The Automation of Countrywide Short Sale Under Bank of America
If you would like to negotiate a Countrywide short sale, then you will have to file this request with the Bank of America. This is because BoA acquired Countrywide in 2008. You have to know that filing for a short sale with BoA goes through the online Equator system, that is, if your mortgage is not backed by the Federal Housing Adminsitration or Veterans Affairs. This online system is highly automated with the listing agent punching in the necessary information. A more streamlined and expedited process is hoped to be obtained through this system. So what steps must you undertake to start the short sale ball rolling?
Steps In Doing A Countrywide Short Sale
1. Find a realtor and buyer for your house. Having a buyer is a requisite for you to get your Countrywide short sale underway. You can actually find a buyer yourself but it may also be better if you have it catalogued with a realtor since BoA requires that buyers and other parties be represented by real estate agents. Additionally, the Equator system has been designed for real estate agents acting for the homeowners and could be intricate for an ordinary borrower to be working by himself. When looking for a realtor, put much weight on his experience doing Countrywide short sales. Make sure that this experience includes several successes, otherwise you may just be wasting your limited resources on nothing.
2. Furnish your realtor with your necessary financial details so that he can key them into the online system. Include data that can substantiate your financial hardship as these will be used by the mortgage provider to assess that you indeed cannot afford to continue the payments.
3. Inform BoA regarding offers on the house by having your realtor input them into the system.
4. Expect your mortgage provider to have your home appraised or valued by a Broker’s Price Opinion or BPO.
5. Based on the appraisals, the BoA will decide whether to accept the offer of a buyer or make a counteroffer. Once the parties agree on the final price, the bank will send an endorsement for the short sale and the offer can be received to close the transaction.
Filing a Countrywide short sale now goes through the online Equator system since this mortgage provider is now under the Bank of America. Working with a real estate agent may be what’s best for a homeowner, since the system is designed especially for agents.
Must-Know Short Sale Information
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Short sale has been conceived as a less painful alternative to foreclosure. Financially distressed homeowners facing foreclosure are often advised to look to short sale as a better way to lose a home and to protect credit score. In this post, we look at some short vital sale information particularly on how “protective” a short sale is on the homeowner’s credit and what makes it a better way to lose a home.
Shorts Sale Information: You Need To Find A New Home ASAP After Short Sale
They say that a short sale is the preferable way of giving up a home over foreclosure. But have you considered the fact that if you take this route of giving up your home, you need to immediately find a new place to live in once your home has been short sold? Additionally, you have to bear with the inconvenience of allowing potential buyers to view the property or you even have to put up with agents conducting open houses to attract buyers. Whereas in foreclosure, it is possible (depends on which state you are in) for you to stay in your home (with no rent) for four months to a year before they can compel you to abandon your foreclosed home. By saying this, I do not necessarily mean that you go for a foreclosure.
Shorts Sale Information: Effect on Credit Score
Now let’s go to the next reason why a short sale is preferable over the dreaded F: effect on credit rating. Actually, the difference in the credit ramifications of the two on credit record is not gaping. A short sale will often appear on your record as ‘pre-foreclosure in redemption’, ‘settlement’ or ‘settlement for less than owed’. You also have to realize that if your lender allows a short sale, most likely, your credit record already would have reflected a little blemish since you have to be delinquent on your payments for your application for short sale to be approved. You would not want these logs to be in your credit record, but with a short sale, expect a decline in your credit score by 80 to 100 points. But do not worry because they can possibly be taken off your file in a few years or less. You can also possibly negotiate with your lender and ask not to report the short sale to the credit agencies.
In comparison, your FICO score may go down by a whopping 200 to 280 points with a foreclosure. This unfortunate way of losing your house will also be reflected on your credit record for as long as 7 to 10 years. In this aspect, a short sale is definitely the lesser evil.
Short Sale Information: You May Be Obliged To Pay For Deficiency Balance
There is a way to keep your credit rating intact. This is by paying for the deficiency balance left after short selling, the deficit between the mortgage balance and the selling price. However, if you cannot settle this, your credit record may have to brace for another blow as your lender can file a judgment in an effort to collect the full or a portion of the deficit. This will be logged on your record and may possibly pull down your rating even lower. This record will stay on your credit record for seven years. Having this in your file may give you a hard time getting the credit approval of other creditors.
Before going for a short sale, gather all the short sale information you can get to aid you in weighing your options and help you prepare for what to expect.
The Secret Formula To Writing A Short Sale Hardship Letter
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Like writing a love letter, writing the short sale hardship letter is crucial in wooing your lender to allow you to sell your house as a short sale. Financial statements and pay stubs flatly show how much you make and how much you spend. The hardship letter tells bankers how your financial situation affect you personally. That is why, lenders give this letter weight in their decision in allowing a short sale. If this is so, you may wonder, what must you include in a hardship letter. Here are the things you must consider.
The Recipients of Your Short Sale Hardship Letter
When writing your short sale hardship letter, put yourself in the bankers’ shoes. Although most of you may think that bankers have no emotions, keep in mind that an actual human being will be reading your letter. Show courtesy and appeal to their emotions. Another thing you must remember is that bankers are often swamped with the same letters from other homeowners. Although we encourage you to compellingly and descriptively explain your story, do not write a novel. Your one-page letter should recount reasons, dates and situations explaining your predicament.
What Must You Include in A Short Sale Hardship Letter
Reasons Why You Can No Longer Afford Your Payments. Think about what events have pushed you into this tight spot and led you to default on your payments. Did you go through a divorce, suffer a medical condition, lose a job or did someone die in the family? Be honest and do not make up stories. Specify dates of when the unfortunate event happened and the series of events that led to it including the times when you failed to make payments.
Actions You Took To Handle The Situation. Show your lenders that you made effort in handling the problem. Maybe you sold some things at home or you waited on tables or took an extra job to raise money to pay for mortgage.
Bad Circumstances In Your Neighborhood Affecting The Value Of Your House. Include certain unfortunate events in your specific neighborhood that you may know of, such as a spate of foreclosures in your street, decline in values of properties or increase in taxes in your area.
Permanent Circumstances That Led To Hardship. State in your short sale hardship letter whether or not the difficulties you are facing are permanent. Permanent situations, such as cases of death, divorce or serious illness may bear more weight. Temporary circumstances such as being unemployed can still be improved, hence, short selling your house may not be the best recourse. A loan modification may be recommended.
How a short sale hardship letter is written can make or break your request to short sell your home. Look at it with bankers’ eyes: make it concise but compelling enough to appeal to their emotions.
How To Buy A Short Sale Home
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Buying A Short Sale Home: Is It Worth It?
Want to buy a new home for less? Some home buyers and real estate investors look to buying short sale homes. You can acquire a property for as low as 40 percent of its original worth. These crazy prices make buying a short sale home worth it, that is, if the lender gives the thumbs up.
A short sale can be trying not just to the seller but to you, the buyer, as well. It can turn into a waiting game if the creditor is reluctant in allowing the process and in shouldering the losses. Be prepared to wait for months to complete your purchase. If you are pressed for time though, you can find bargains from foreclosures and some upper-fixers.
How To Get The Lender To Approve A Short Sale Home?
You practically cannot influence the lender to approve a short sale except by offering a considerable bid price. One important reason that the lender will deny a short sale or turn down your offer is if they are not happy with the bids submitted and think that they can make more money by foreclosing on the house. Typically, lenders will request one or more appraisals and may also ask for a Broker’s Price Opinion. A comparative market analysis may be needed to defend the price offer. However, offering too much just to get the lender’s approval could defeat your purpose of buying a short sale: get a great bargain. If you have the wherewithal, find out if the particular lender you are dealing with would put weight to substantial down payments, then offer to pay a considerable amount or even in cash if they are swayed by this.
Although you have no control over the other matters, you should at least know what will make the thumbs of the lender go up so that at least you would have some idea of your chances of buying the short sale home. The mortgage provider must be convinced by the financial difficulty of the seller through the hardship letter. If the lender has funded a number of properties currently in the throes of foreclosure, a short sale may be approved to reduce the number of foreclosures. The lender will also check the Disbursement Estimate to check if the seller has received money.
5 Steps In Buying A Short Sale Home
1. Research before you submit an offer to purchase. To guide you in coming up with an appropriate price, ask questions such as: who is in title; how much is the mortgage balance; has a foreclosure notice been file already. It is also important that you know if there is a second mortgage as this can also affect whether a short sale can proceed. Ask also if you can reserve the right to inspection. Most short sale homes are sold on an as-is basis, which means that you are not protected. Protect yourself by checking out the property.
2. Hire a competent real estate agent with solid experience in short sales. Your agent can help you with the research above and in contacting and coordinating with the lender.
3.Get in touch with the loss mitigation department of the mortgage provider and furnish and Authorization Release Information form signed by the seller. You will know about your chances of buying the property from this department so take note of names and numbers to make your follow up.
4. Submit your offer, the required documentation and a copy of your earnest money deposit. If you qualified for a pre approved loan, also submit a proof of this.
5. Wait. In the first few months after you proffered your bid, expect that even if you made the highest bid, the bank may not consent a short sale. They would buy time waiting for a higher offer. This delaying tactic is what stretches the short sale process to take several months or even over a year.
Buying a short sale home can be profitable to real estate investors and budget-friendly to home buyers; however, the strung-out process can discourage would-be buyers to pursue the purchase.
9 Critical Reasons Why You Must Avoid Short Sale Homes
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Are you one of those people scouting for listings of short sale homes, hoping to buy property at a bargain price, either for personal use or as an investment? Although some people may have been lucky to chance on some great steals, there are a number of reasons why you must avoid short sale homes.
1. Sellers of Short Sale Homes Borrowed More Than They Should Have
During periods when the market was escalating, many lenders were motivated to lend money to the extent of lending borrowers more than the real value of the home. Subjective appraisals did not help to prevent this. There were some banks that allegedly, pushed appraisers to give an appraisal equivalent to the amount that the homeowners want to borrow.
2. Seller Bought Expensively
Many short sale homes, before they got under water, were originally bought at a time that the market was leaping, hence, the homeowners bought them at relatively expensive prices. However, now that the market has taken a nosedive, the homeowners no longer have equity. So when you buy a short sale, it does not really mean that you are enjoying a great discount that really is not there. For example, if the short sale home you are considering to buy was originally acquired some years ago by the homeowner for $300,000, and now it is offered at $200,000. Do not think that you are luckily fetching $100,000 of equity at no cost.
3. Short Sale Homes That Are Ineligible
Beware of homes listed as short sales even if homeowners have not discussed short selling with their lenders yet or have not yet gone through pre-qualifying assessment yet. Some unprofessional real estate agents urge homeowners to contemplate on short selling their house even if the seller is not qualified.
4. A Waiting Game
Processing short sales could take between two weeks to several months before you can close the transaction. Some factors that contribute to the sluggish process include incomplete paperwork submitted by the seller and the logjam of foreclosures faced by the lender. Additionally, lenders also take their sweet time waiting for higher bids if they do not like the current prices being offered. If there are two loans secured to the property, then you will be dealing with two lenders and the process may just protract because you need to satisfy two sets of demands.
5. Not All Short Sale Homes Sell At A Discount
As previously mentioned, lenders often take their time approving a short sale because they are waiting for higher offers. They will budge only when offers are at par with comparative prices in the market. The lender would prefer to foreclose on a house if he thinks that he can get a better price there than in short sale, so he delays approving a short sale request, waiting for a higher offer. In effect, short sale homes are sold at market value or at least close to market value.
6. “As Is” Selling Condition
If you buy short sale homes, typically, you are to buy them at their present condition. Banks will most likely not pay for your home protection plan, roof repairs or roof certifications, proposed repairs reported on a home inspection, pest inspections or work needed to furnish a clear pest report, and deferred maintenance.
7. Changing Conditions of Lenders
Do you have lawyers at your disposal? Watch out for lenders who reserve the right to change the conditions of the short sale at the last minute. There are lenders who do this depending on shifts in the market, enactment of new laws or some new information gathered. Lenders can make this renegotiation at their whim because they have lawyers at their disposal.
8. Steep Closing Costs for Buyers
Most lenders do not pay for any additional costs. In some cases, they even will not pay for transfer taxes and other customary seller closing costs. You will have to pay for any extras you want, such as if you would like to conduct particular inspections.
9. Lender Often Controls The Transaction
The lender of the seller is in control in a short sale. The closing process in a short sale can last for an unknown length of time. This disables you from being able to target a specific date to close escrow.
At first glance, buying short sale homes may be a great way to acquire great deals; but knowing the nitty-gritty of the transaction may turn buyers’ feet cold.