Short Sale Time Frame

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How long does it take for short sales to get approved?


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There isn’t an exact time frame to get an approval for a short sale granted. However most lenders tend to promote it will take a minimum of 21 days AFTER they receive a complete short sale package to review it for approval.

It isn’t uncommon for lenders to be backed up or way behind in dealing with borrowers either in foreclosure or late on their payments. This will cause a backlog and bottleneck the approval process delaying it for days, weeks or sometimes months at a time. This is also the case if the borrower has filed for a bankruptcy. The lender isn’t allowed to pursue the borrower for debt repayment during a bankruptcy.

The number one reason a short sale is delayed is due to the borrower not providing all the information the lender requests to process a short sale request. The file will sit abandoned until all the documents are received. This is another reason why many Loss Mitigation Departments are responsible for handling 200 or more files a month. Borrowers submit incomplete packets and the loss mitigators put their file at the bottom of the pile.

Answered almost 7 years ago

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