Home Buying in Orlando>Question Details

Sam, Home Buyer in Tampa Palms, FL

Why are the banks taking so long to settle short sales in Orlando area?

Asked by Sam, Tampa Palms, FL Sun Apr 15, 2012

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It is EXTREMELY important to have the complete Short sale package submitted to the bank when you have the offer. The banks short sale negotiators do not like to receive pieces of the package as if they were building a puzzle for example. If you have an experienced Short sale agent the process should be smooth and you can have a quicker decision from the bank.

I work with excellent short sale attorneys, negotiators, and I have short sale experience going back to my first short sale closing completed back in the 1990's. If you need help selling your property as a Short Sale feel free to contact me:

Best regards,

Jesse Carriedo
RealtyCity Inc.
Broker Owner
407-923-0985
Email: RealtyCityinc@gmail.com
Website: http://www.RealtyCityinc.com
1 vote Thank Flag Link Sun Apr 22, 2012
It really depends. There are so many factors that need to be considered.
0 votes Thank Flag Link Sun Apr 22, 2012
This situation is common no matter the location. The core and variables that go in to a bank approving or not a short sale option may be found in banks' processes of ensuring a current homeowner is indeed eligible for the option.

The original intent of a short sale option which has been available since the early 90's and has been massively abused over the past 48+ months and in part has contributed to enormous grid-lock in the system. If you can imagine opening a door and suddenly you are bombarded by thousands upon thousands of individuals, whether eligible or not for the option, coming at you all at the same time. No business can withstand this scenario and efficiently produce a positive result. However, over time the banking industry has put tools in place to better handle the load. I worked in the banking industry for many years before transitioning as a real estate broker, and this is what I believe to be true. Good luck to you!
0 votes Thank Flag Link Fri Apr 20, 2012
Sam,
To answer your question is simple. They are short on processors and have a stack of them. But BofA recently announced a new way to process them and so far I noticed how smooth it is and it should speed up things for short sales. They eliminated a few stages in the processa and I hope others follow suit. Have a Great Day!


Best Regards,
Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406
moveinnow.org
Visit us on trulia.com
0 votes Thank Flag Link Mon Apr 16, 2012
Sam, these are the same people who got us into this mess in 2005 to 2007. Do you think they suddenly all got better educated and more efficient? If you want a short sale, then you should be prepared to wait 4 to 6 months. If you are not, then don't look at short sales.
0 votes Thank Flag Link Mon Apr 16, 2012
Hello Sam!

As everyone stated here, there are many factors involved and we all wish short sales could move faster so that we homeowners can move to a better future and also that they can purchase in the near future again.

Here is a link to an article where Bank of America states that they are planning to approve short sales inn about 20 days starting this "week". I believe the problem lies in that these banks still do not have streamlined and efficient internal procedures to process the volume of short sales in addition to all other factors. The reason why I believe this is the case is because I sometimes get negotiators that ask me for the same information several times in a short period of time and that is a signal that something is not right internally.

This is just my opinion and I wish someone could have more insight on this subject. Great question though!

Javier Rodríguez, SFR
Real Estate Broker, REALTOR ®
HouseStar Realty Group Inc.
Lic: BK703443

: 407.429.5243 | Cell: 407.301.3401 | eFax: 407-830-5633
: jrodriguez@housestarrealty.com
: Main Office: 1033 Semoran Blvd Suite 245 | Casselberry, FL | 32707 USA
"There are no perfect men, only perfect intentions"

Websites
http://www.facebook.com/bienesraicesenorlando
http://www.clasificadosenflorida.com
0 votes Thank Flag Link Sun Apr 15, 2012
Short sales are not short for sure. The short refers to the shortness of equity and/or value of the property in relation to the outstanding note.

The good news is that short sales have improved dramatically. Experienced short sale agents do their due diligence at time of listing by working with sellers to have the short sale package ready and submitting the complete paperwork to the short sale lender(s) as soon as a contract becomes available. Clear understanding of the process, follow through, and prompt attention to details are paramount. A short sale take an average of 120 days, sometimes less or more depending upon the banks and entities behind the note and the intricacies of the transaction. Unfortunately, heavy homeowners association liens or others liens attached to the property can delay or kill the short sale.

The Richter Team
Coldwell Banker Real Estate
monica.richter@floridamoves.com
0 votes Thank Flag Link Sun Apr 15, 2012
All areas and one therory is that if it forecloses the deficiency is insured and they break even.

Short sales are not covered by insurance that is a choice to throw away money.
0 votes Thank Flag Link Sun Apr 15, 2012
There are many factors in why a short sale could take a long time.. First the seller may have not been providing the financals that is need for review. Second it could be the communication between the short sale department and the seller agent, is not good. Third it could be that the seller has two different loans on the property, and the short sale has to be negotiable with two different banks.
Also how long is long, it may not actually be that long..

Lisa Mosier
Coldwell Banker Coast
lmosierrealtor@cfl.rr.com
0 votes Thank Flag Link Sun Apr 15, 2012
it is a comon problem with some banks. All banks are not the same. Every short sale is different. IT could be any number number of different reasons. Are you a buyer or a seller
0 votes Thank Flag Link Sun Apr 15, 2012
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