Home Buying in 60611>Question Details

Bernice Crues, Home Buyer in New York, NY

Don't banks get it? If they would move faster in processing offers on a short sale they would be helping not only themselves but the homeowner

Asked by Bernice Crues, New York, NY Sat Apr 7, 2012

too? If the bank has approved a short sale why not just set the price and be done with it. No negotiation. Then when an offer comes thru you don't have to wait 6 months to get an answer form the bank. Either your offer is accepted or not. Why is this so hard for banks to reason through?

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I agree, it takes entirely too long to do short sales. It is sometimes the situation where there are 2 leins and that does complicate matters. But especially when they have one note banks advertently or inadvertently set these up to fail by not agreeing to sales prices up front and dragging their feet. I have yet to hear an answer by any bank that makes sense. I often hear they do not have the resources. But it is in the banks best interest to get the asset off of their balance sheet as soon as they can. Less time and more certainty would make short sales a lot more appealing to buyers .
0 votes Thank Flag Link Sat Apr 7, 2012
Banks run the world. They can do whatever they want. The fee of a house going into foreclosure is like you losing a penny. Its meaningless.
1 vote Thank Flag Link Sat Apr 7, 2012
Banks are dumb. How do you think they got in trouble in the first place?
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1 vote Thank Flag Link Sat Apr 7, 2012
We've been collectively scratching our heads over this for years! Banks are not the smartest of organizations.
1 vote Thank Flag Link Sat Apr 7, 2012
Bernice,

The truth is that banks do have the money and talent to make these short sales faster and more efficient. After working for a big bank I realized that they were not in the business of helping people but keeping profit margins high. This is because of the obvious they have to answer to stock holders, investors etc. Government cant do much since big banks hold the majority of the American wealth.

On the bright side, the market is picking up and banks are noticing which is why they are implementing a faster short sale turn around. Conspiracy? hmmmm or business as usual?
0 votes Thank Flag Link Tue Oct 9, 2012
All Realtors feel your pain -- the process is getting better overall, but it's still always too long and frustrating. The uncertainty can be maddening to us and our clients. Hopefully banks can continue to streamline the process to make it easier for everyone. They'll save money and the buyers and sellers will be happier.
0 votes Thank Flag Link Wed Oct 3, 2012
Well the banks can't list the property at a certain price in a short sale because they aren't the owners on record. In a short sale, the property is listed before the whole package is sent to the bank. When the first offer comes in, then everything is sent to the bank to go over. B of A is supposed to be trying to speed up their SS's this summer and I think many other banks will too.

You can sometimes find pre-approved SS's if the bank has given a counter and that buyer backs out. If the buyer backs out, that agent would be stupid not to change the listing price to the counter. Then you can close the deal with a new buyer quickly.
0 votes Thank Flag Link Mon Apr 30, 2012
That makes too much sense Bernice!
0 votes Thank Flag Link Sat Apr 14, 2012
If only it was that easy, banks unless it is a portfolio loan have to follow the guidelines of the investors that they sold the loan to. Once they receive a Short Sale offer that the negotiator belives the investors will approve they they will submit it for approval, oftentimes the negotiator would not submit the file until he or she is sure it meets all the guidelines.These investors are not willing to let anyone know what they will accept as they do not want to compromise their investment. The guidelines take into account the percentages of the BPO and other factors http://www.stoppalmbeachforeclosure.info
0 votes Thank Flag Link Sat Apr 14, 2012
Bernice -- I've seen it work like this before, however the expectation I set for my buyers is that the process will be reset with a new offer. I feel your frustration though!
0 votes Thank Flag Link Sat Apr 14, 2012
If Banks applied reason, politicians wouldn't lie, schools would discover teaching methods that worked, healthcare would be affordable and accessible for everybody, governments wouldn't promote warfare, and pigs would fly.
0 votes Thank Flag Link Thu Apr 12, 2012
Banks are getting better at processing short sales and most take about 3 months from start to finish. There are many short sales that are already in process, have had previous offers, or are already pre-approved which can take days to a few weeks to be approved once an acceptable offer is presented. A good buyers agent will know the questions to ask the listing agent.
0 votes Thank Flag Link Sat Apr 7, 2012
Actually,the "bank" more often then not in a Short Sale is the "Servicer" of the loan and not the owner of the mortgage (who is an investor). So the bank is the middle man in the process. The owner has no concept of the real estate other than as an abstract investment in their portfolio with a BPO.
0 votes Thank Flag Link Sat Apr 7, 2012
Many buyers don't understand the "Big Picture" when it comes to Short Sales.

First thing to realize is often it is not as simple as one offer/one response. Many times there are multiple leins against the property ex: 2nd and 3rd mortgages. All of these participaants must agree to a percentage of whatever the offer is.

I think the more preparation that an agent invests in a property when listing - the quicker the offer will be accepted or rejected.

You as a buyer have every right to ask before making an offer if there are multiple leins on a property. You can also ask if the short sale price has been pre-determined and agreed to prior to the sale.

Each short sale is unique and different. You can usually get a "feel" for how complicated the sale will be by asking these two questions.
0 votes Thank Flag Link Sat Apr 7, 2012
Maybe the banks are moving as fast as they can and maybe the speed is appropriate. If they move faster than what is appropriate it maybe the same thing as Fred Astaire dancing with a Slimy dance partner if that makes sense to you.
0 votes Thank Flag Link Sat Apr 7, 2012
The bank doesn't want to give a bottom line because they may get lucky and make a little more. I have never had to wait for six months to get an answer on a short sale when I am on the listing side. However, when on the selling side, I have little control and that is very frustrating.

I agree that the banks should make the whole process a bit more streamlined for everyone's sake. If we can get through these distressed properties in a timely manner, everybody wins, including the home owner. If an owner will inevitably default, it is better sooner than later. Then they will be able to recover faster.

The longer this drags on, the worse it is for everyone, including the overall economy.
0 votes Thank Flag Link Sat Apr 7, 2012
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