In DFW Texas, our association is really pushing short sale certifications and distressed property certification. The classes are a great update of whats really going on and how we can get around this learning curve. I dont like to buy into conspiracy theories... to me most of the time, its inefficiency or lack of knowledge.
Honestly, I think the banks are just enjoying messing with us, and trying to drive us out of the business. Last time I checked, murder and arson are still illegal, so I am simply not doing the pre-foreclosures anymore. Personally -- I refer them to Josh Boggs... he has far more patience than I do.
Enjoy! Heaven is coming - this world is not our home!
I can not prove this is for all lenders but do know for a fact that chase mortgage does handle the loans on a manual basis with the assistance of an access data base that can not keep up with the use. If the negotiator is organized and knowledgable the case will move quickly,if not organized, plan on a long wait.
Bank losses are not booked until the closing is booked or when updated bpo's if the assest is owned by the banks. Market to market , may of changed write downs but unless a market evaluation is completed , only assumptions can be used to estimate losses. With the growing numbers in the 60 day defaults the regulators should becoming more involved and raising issues for the banks and everyone else.
First Weber Group
Certified Distressed Property Expert
So....we send the packet to the lender....and it takes a week or two to get it into their system. Figure another 2-4 weeks for them to analyze the financial situation and send that out to the investors. That's easily another 2-4 weeks....and then it goes back to the servicer to execute...there's three months right there. Add negotiatngwith the junior lien holders on top of that!
It's not easy....and they are not going away.
I gave Cindi, Keith, Patricia and Danny a "thumbs up" because they are all on the right track in my opinion.
I've personally turned around a Wells Fargo SS from offer to acceptance letter within 3 weeks and a Chase SS from 65 days from offer to acceptance. There are soo many loose threads in such a chaotic system, that just by pulling one slight, will turn any possible success to certain doom!
For example, a certain negotiator in charge of almost 15 new SS files a day slapped on her desk alone decides that since the Realtor who wasn't very nice and polite over the phone turned in the SS packet in not the specified order; turns the file back to the bottom of her stack or on another pile that keeps it from getting reviewed. That can happen very easily and certainly does. I usually laugh when I hear some agents on the phone to the lenders demanding aggressively for that person to put their file on top priority. These people may get paid $18/ hour and could care less who I or any other Realtor is that only has one, maybe two files working with that lender... little alone that negotiator.
Look at Cyndi's time frame and she's right on the money as to what I "normally" see on a daily basis. Also, documentation for each and every single time you speak with ANYONE is crucial if you're going to have any shot at proving to ALL parties that things are being done timely and completely from your side.
Most Realtors will always believe they know more and don't have the time to be doing the 30 minute follow up on files you should do every day; and they may be right. That's why if anyone is going to take on a SS listing, they have better have a system in place and many support channels available to keep up with all the necessary communications and homework that these banks will need.
Additionally, I've turned down a handful of sellers upon our initial consultations. Not because I'm an speaking on behalf of the bank for an acceptance, but because I usually have seen what most banks are looking for and can decide whether i've got a seller that's truly in a hardship, or they simply are "claiming" a hardship. Big difference when you're dealing with a successful outcome.
Until there can be a large agreement upon policies, procedures and systems on how these SS should be handled, I believe that they're still going to be such a tough transaction to tackle if you're not ready to be patient, learning based and have a slight enjoyment for pain! ;)
It all goes back to "walk a mile in my shoes".
There are some great resources for short sales. I'm including one site.
A loss on a house sale be it foreclosure or short sale does not appear until the sale is made. What better way to cook the books than to delay or avoid sales that will provide losses and remove the cushion that makes the bank appear solvent when it really is insolvent?