How long does a short sale take?

This is the real story of a 316-day short sale + pre-foreclosure at 24977 Oro Valley Rd in Lake of the Pines.

Some transactions are straightforward.

Others test every part of the process.

This one took 316 days.

The property—24977 Oro Valley Road in Lake of the Pines—was a short sale layered inside a pre-foreclosure. In simple terms, the seller owed more than the home was worth and had fallen behind on multiple obligations.

This wasn’t just one lender.

We were coordinating with:

• A primary loan through M&T Bank

• A second-position HUD relief loan (over $35,000)

• Additional lien holders

• Delinquent taxes, insurance, and HOA dues

Every party needed to approve the sale.

And with HUD involved, we weren’t just dealing with a bank—we were dealing with the government.

How It Got Here

The seller purchased in 2021 at the height of the market with very little down. Shortly after, they ran into financial trouble and couldn’t keep up with payments.

Over time:

• Mortgage payments fell behind

• Taxes, insurance, and HOA dues went unpaid

• A second loan was taken out to catch up—and also defaulted

At the same time, the market declined and the property condition worsened.

By the time we got involved, there was no equity—and no easy way out.

The Road to Closing

This didn’t close on the first attempt.

We had multiple failed escrows along the way.

The final buyer entered escrow in September and stayed in through March—a seven-month escrow.

That kind of patience is rare.

What kept the deal together was a personal connection—the buyer’s parents lived just three doors down. Without that, this likely doesn’t close.

Because the reality is: you can only move lenders and government agencies so fast.

What It Took

We took it one step at a time—problem solving, coordinating, and staying persistent.

Challenges included:

• Aligning multiple lien holder approvals

• Navigating HUD’s short sale process

• Managing a declining property condition

• Keeping a buyer engaged through months of uncertainty

And ultimately, getting everyone to agree on the numbers.

Lessons from the Deal

1. You need the right buyer

Short sales require patience—seven months in this case. Without a buyer with a strong personal reason to stay committed, this deal doesn’t happen.

2. Appraisals have to align

There are two appraisals—one for the lender, one for the buyer’s loan. Two independent opinions of value that have to land close enough for the deal to work.

3. The settlement statement is everything

With multiple lien holders, every dollar is negotiated. A strong escrow officer is critical to structure the deal, negotiate payoffs, and get it closed without the seller bringing in money they don’t have.

Final Thoughts

This wasn’t an easy transaction—but it got done.

Short sales and pre-foreclosures take persistence, communication, and the right team. There are no shortcuts, but with the right approach, even complex situations can reach the finish line.

If you—or someone you know—is in a similar position, the earlier you start the conversation, the more options you’ll have.

Kyle Wells, Realtor®

KWells Group Real Estate

Brokered by eXp Realty of California, Inc.

915 Highland Pointe Dr STE 250

Roseville, CA 95678

📞 916-778-8659

🌐 www.kwellsgroup.com

DRE #02145088

Serving Roseville, Rocklin, Loomis & surrounding Placer County communities