Nesposito you have characterized the overall process very well. It is just a long haul to get through the ordeal. It is very frustrating as well with respect to lending. I actually advise people to not even bother locking in a rate until the short sale is approved by the lender. If the approval takes a long time and rates have shot up in that timeframe then that is the way it goes but by the same token, if rates do shoot up then that will put more pressure on pricing overall so maybe something better will come along.
It does help immensely if your buyers agent is savy at the process… Unfortunately though, the odds of your short sale getting through are really weighted by the listing agent of the home. Even in that arena the listing agent is at the mercy of the lender. Through the process the listing agent may get passed around to several people through loan workout, loss mitigation, and other departments at the lender. Once they reach the nirvana of the closing desk then they are home free…. It really takes ALOT of energy from the listing agent, to continue to hound the lender yet not piss them off at the same time. Meanwhile here you are Joe Buyer waiting for what generally amounts to a few months but you can and should keep looking. Again, I would not lock in a rate, just keep a wary eye on where they are at. Then if/when the offer is approved, you get that lien release letter from the short sale lender, send it to your lender and lock that darn rate in.
