Short Sale Timelines: What Agents and Sellers Should Expect

If you’ve ever been involved in a short sale, you know one truth: patience isn’t optional. Short sales don’t close on the same timeline as traditional sales, and the waiting game can be tough on sellers, agents and buyers alike. But when everyone understands the process up front—and has realistic expectations—short sales can move far more smoothly.

In this post we’ll walk through the typical short sale timeline, highlight what each party should expect along the way and share insider tips to keep deals from dragging on longer than necessary.

Step 1: Listing and Offer (1–4 weeks)

The process begins like any other listing: the homeowner hires an agent, the property is marketed and buyers come through the door. But here’s the difference: instead of focusing on what’s owed on the mortgage, the home should be priced at true market value.

Banks won’t approve an unrealistic list price. If an offer comes in too high, the bank will reject it. If it comes in too low, the deal may stall. That’s why agents experienced in short sales often list properties right in line with local comps.

Pro tip for agents: Be upfront with buyers from the start—this deal won’t close in 30 days. Set expectations now and you’ll avoid headaches later.

Step 2: Submitting the Short Sale Package (1–2 weeks)

Once there’s an offer, the seller (with their agent’s help) must submit a short sale package to the lender. This package typically includes:

- Hardship letter from the seller

- Proof of income and expenses

- Bank statements

- Offer and purchase contract

- Listing agreement and MLS sheet

- Preliminary HUD or net sheet

Banks won’t even begin their review until this package is complete. Missing documents = automatic delays.

Pro tip for sellers: Be responsive. Every day you delay sending docs is another day the bank delays starting the file.

Step 3: Lender Review and BPO/Appraisal (3–6 weeks)

Here’s where the waiting really begins. Once the package is submitted, the lender assigns the file to a negotiator and orders a BPO (Broker Price Opinion) or appraisal. This valuation determines whether the bank believes the buyer’s offer is fair.

The agent often has influence here. By meeting the BPO agent at the property and providing comps that support the offer price, they can help ensure the valuation doesn’t come in unrealistically high.

Pro tip for agents: Prep your comps like you’re going into battle. The lender’s number will make or break this deal.

Step 4: Negotiation and Approval (4–8 weeks)

Once the valuation is in, negotiations kick off. The lender may counter the offer, request updated documents or ask for more information. If there are multiple lien holders (like a second mortgage or HOA lien), each one must be negotiated separately.

The approval process can be the most unpredictable part of the timeline. Some banks respond quickly, while others seem to move at glacial speed.

Pro tip for all parties: Keep communication consistent. Weekly check-ins with the lender are essential. Don’t assume silence means progress—it usually means your file is sitting at the bottom of the pile.

Step 5: Closing (2–4 weeks after approval)

Once the approval letter arrives, the rest of the process looks much more like a traditional sale. Buyers finalize financing, title orders payoff letters and closing is scheduled.

The lender’s approval letter will include strict timelines—often requiring the deal to close within 30 days or less. At this stage, everyone must move fast.

Pro tip for buyers: Have financing lined up before approval. If you wait until after the approval letter, you could miss the bank’s deadline and lose the deal.

The Typical Timeline: 60–120 Days

While no two short sales are exactly the same, here’s a realistic breakdown:

- Listing & Offer: 1–4 weeks

- Short Sale Package Submission: 1–2 weeks

- Lender Review & Valuation: 3–6 weeks

- Negotiation & Approval: 4–8 weeks

- Closing: 2–4 weeks

Total: 60–120 days from accepted offer to closing.

Yes, that’s longer than a traditional sale—but not endless. And when managed by an experienced short sale negotiator, the process often lands closer to the 60–75 day range.

Why Deals Drag Out Longer

Sometimes short sales stretch to six months or more. Why? Common culprits include:

- Incomplete or delayed document submission

- Lender backlog or staff changes

- Lowball offers far below market value

- Second lien holders refusing to compromise

- Buyers walking away mid-process

Pro tip for agents and sellers: Hire a short sale specialist early. An experienced negotiator can often anticipate lender hang-ups before they happen and push the file forward.

Final Word: Patience + Preparation = Success

Short sales may not be “short,” but they are absolutely doable with the right strategy and expectations. Sellers should understand that the process takes time. Agents should prep buyers to stay patient. And banks—well, they’ll always move at their own pace.

The good news? With preparation, persistence and an expert on your side, a short sale can close successfully—giving sellers relief, buyers a fair deal and agents a commission on what might otherwise be a lost cause.

Want to dive deeper into the short sale process? Check out our other resources on the Crisp Short Sales blog, including guidance on preventing short sale pitfalls and maximizing relocation assistance. If you’re ready to start your own short sale, contact our short sale specialists for hands-on help.