Why Some Short Sales Move Faster Than Others

When a short sale drags on for months, most agents and homeowners blame the bank servicing the loan. It’s an easy assumption — after all, the servicer is the one you’re talking to. But here’s the truth: it’s not always the bank that’s slowing things down.

In many cases, the real pace-setter is the investor who owns the mortgage behind the scenes.

If you understand who really calls the shots — and how their rules work — you can predict timelines more accurately, avoid frustrating delays, and even help approvals happen faster.

Servicer vs. Investor: Who’s Really in Charge?

The bank or servicer (like Mr. Cooper, PHH, Wells Fargo, etc.) is the middleman. They collect payments, handle customer service, and process your short sale paperwork.

But the investor — the entity that actually owns the mortgage — is the one that sets the guidelines and ultimately approves or denies the short sale.

Think of it like a property manager vs. landlord: the property manager may be who you deal with, but the landlord makes the final decision.

Why Timelines Vary So Much

Different investors have different rules for reviewing and approving short sales. Here are some of the most common examples and how they impact speed:

1. FHA & VA Loans – The “Waterfall” Requirement

If the investor is FHA or VA, the process is rarely quick. That’s because they require the homeowner to first go through a waterfall process — a series of “retention options” to see if the homeowner can keep the property before they’ll even consider a short sale.

Retention options might include:

Loan modification

Forbearance

Partial claim

Repayment plan

Only after the homeowner is found ineligible for these options can the short sale review begin. Translation: you’re looking at built-in delays before the real work even starts.

2. Fannie Mae – The HomePath Advantage

When Fannie Mae owns the loan, your offer will likely go through their HomePath system.

Here’s the upside:

The platform gives you direct access to Fannie Mae’s approval process.

You can often bypass some of the traditional back-and-forth with the servicer.

In many cases, this speeds up the review compared to other investors because you’re communicating closer to the decision-maker.

3. Mr. Cooper – Equator-Driven Process

Mr. Cooper requires short sale files to be managed through Equator — a platform built specifically for short sales and other loss mitigation processes.

Pros:

Clear, trackable task list.

Built-in messaging for quick updates.

Cons:

You must complete every single task in the system before the file moves forward.

Missing or delaying one step can stall the whole process.

For agents and negotiators who know how to work Equator efficiently, this system can keep things organized and moving.

4. PHH – Reverse Mortgage Specialists

PHH handles a large volume of reverse mortgage short sales.

These can be much more straightforward because:

The homeowner usually isn’t making payments.

The lender already expects to be paid from the sale or claim.

As a result, PHH can sometimes offer a streamlined review process — but only if you know their documentation requirements up front.

The Big Takeaway: Know the Process, Win the Timeline

A short sale’s speed has less to do with whether you’re working with “Bank A” or “Bank B” and more to do with:

Who owns the loan (the investor)

What their approval process looks like

How quickly you can get them what they need

The more you know about your specific investor’s playbook, the more you can:

Set realistic expectations with your client.

Gather the right documents early.

Push the right buttons to keep the file moving.

How Crisp Short Sales Keeps Deals Moving

We’ve worked with just about every type of investor out there — FHA, VA, Fannie Mae, Freddie Mac, private portfolios, hedge funds, you name it. That means we don’t just submit paperwork and hope for the best.

We tailor our approach to each investor’s process, anticipate their requests, and sidestep unnecessary delays.

The result? More approvals, faster closings, and happier agents and sellers.

If you’ve got a short sale that’s stalling — or you just want to make sure the next one moves as quickly as possible — reach out to Crisp Short Sales and let’s get it moving.