The nature of St George Short Sales have changed in both time and in how they are processed. They are less risky than they were before. Typically there is no earnest money required and either buyer or seller can "walk" anytime without penalty, prior to the third party approval(s) of the bank(s). Being a lot faster, short sales now take between 1 to 4 months typically. It is not unheard of that one takes much longer, so be careful. But most are 1 to 4 months now. Depending on if there is a short sale intermediary, like I have, when conducting my short sales as the listing agent, the time can be more like 1 1/2 to 3 months.
Update: Short Sales can possibly affect credit just as bad as a foreclosure. Also, it is not always necessary to stop payments or recommended, in order to initiate a short sale- consult with my short sale specialist; call (435) 674-3600.
If you are a buyer searching short sales, please be aware there is a "Short Sale Status:" section on every listing. "No" means it is not a short sale; this is most of the listings. "Active" means that it IS a Short Sale and intention wise, without a contract yet (not always the case). They also have "Offer Under Review", which means it does have a contract on it; but most of these are taken down as Pending.
If it says "Active" (some sites might say "Yes") it could most often mean they are still looking for a primary offer/contract. Be aware a lot of times they DO have a contract, but drag their feet in updating it to Pending or "Offer Under Review".
So, sometimes they already have at least one offer that has been submitted to the bank and they are mostly satisfied they have what they need. They might even have a back up offer. But most of these will have changed their status to read "Offer Under Review". Any of these scenarios might also have some "call me back" if the first contract "falls out".
Thus, most Short Sales do not have to have more than one offer to have it go Pending or Offer Under Review and not even show up. Our local MLS has started to clamp down on Short Sales who have an "accepted contract" to update it to Pending, instead of leaving it on there so long as "Active" after the fact.
When it goes Pending it disappears from the Active listings for sale. If you see a Short Sale Status that says "Offer Under Review" really what this means is that it is still part of the Active listings WHILE having had to get special written permission from the Seller to continue to market it to try to get back up offers. Technically this is although it is still under contract while waiting for third party approval(s) from the bank(s).
The long of the short is that while banks have wanted the listing agent to submit more than just the first offer, unlike in the past just wanting the first offer, the MLS still cracks down on the listing agent holding it as Active for too long before updating and taking it down as Pending. It just means it might not really be sold yet, and you may want to submit a back offer because it could be actually seen along with the first offer. But before you do, make sure your agent asks the listing agent if it will get seen or not up against how strong the first offer is, otherwise it might be a waste of everyone's time. OK, if you need any more info, please call the number in the top right of the site and Brian or one of our experts can help further.