Here we explore the overall process & timeline of short sales in Colorado. Keep in mind these are averages and each file varies.
Step 1: Consultation & Listing ~ 2-7 Days Average
We work for homeowners and need to have first conversations to make sure our goals are aligned, to answer any questions that come up and educate you about short sales in Colorado. We can either list the property directly though our separate, independent brokerage if you are in the Denver Metro Area or point you a qualified broker in our greater Colorado network.
Step 2: Marketing & Offer ~ 1-3 Weeks Average
Once listed, the next step is to receive an offer from a buyer. Depending on your area and demand, the marketing stage may be quick or may take even a few months. We always recommend you work with a broker who is very experienced in short sales.
Step 3: Finalize Offer & Short Sale Package ~ 3-10 Days Average
Once and offer is received, now is the time when we need your financial paperwork. See The Package page for a detailed list of what is needed. This list varies slightly from lender-to-lender. We work closely with you to make sure everything is complete. Being prepared can greatly reduce the overall timeline.
Step 4: Lender Receives Offer & Financial Package, Review Begins ~ 1-3 Weeks Average
Lenders double-check the file for completeness before assigning a negotiator on the file. Once assigned, they begin their review and typically order a title report, credit check, IRS transcripts and a valuation/appraisal of your property.
Step 5: Appraisal/BPO is Completed ~ 1-2 Weeks Average
The lender needs to have an opinion of value before they can decide if the offer is acceptable. Commonly they will send an appraiser or real estate broker to your house to take pictures and report back on property condition and price. Then it must go through a quality control which can add a few extra days.
Step 6: Final Review ~ 1-3 Weeks Average
Once all reports and values are back, they can finally review the seller’s financials and offer. They may counter the buyer or chip away at closing costs to try and recover as much as possible. Heavy negotiations are common here. Once the offer is acceptable, it is sent to management for final approval.
Step 7: Final Approval ~ 3-12 Days Average
Sometimes this is as easy as a negotiator or management sign-off but occasionally this stage requires the file sent to the investor or mortgage insurer for final approval. They may come back with added demands or simply approve.
Step 8: Prepare for Closing ~ 21-30 days Average
All disclosures and buyer’s appraisals would be completed at this time. Finally the buyer can complete their due diligence, loan (if any) and go ahead to closing.
Step 9: Closed!
The lender reviews the final settlement statements and issues the last approval to close. Seller is required to move-out of the property by this time. All final documents are signed, money disbursed and the transaction is finally complete. Congratulations!
Total Time Averages Between 3 -5 Months
Top Reasons why it may take longer:
- Financial paperwork incomplete
- Marketing takes longer than expected
- Lender or assigned negotiator is slow/overworked/understaffed
- Investor / Mortgage Insurance delays
- Lender value /BPO disputes
