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Is anybody else seeing the short sale time frame from lit to close shorten considerably?

Asked by Voices Member, Tue Jan 17, 2012

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17
I understand that if you can stay asleep for months on end it seems to close in no time at all.
Web Reference: http://ww.321property.com
2 votes Thank Flag Link Wed Jan 18, 2012
My wife negotiated a short in 1 week from start to close.
1 vote Thank Flag Link Wed Jan 18, 2012
I am seeing it vary from bank to bank. The hard part is all the banks follow a different protocol and communication within the specific bank is ALWAYS difficult. Is the shortsale process more efficient and effective than two years ago: yes. Therefore the timeframe has shrunk and the banks have hired some help. Training the "minions" has become a issue. Short sales will be a part of our market for some time and I believe the process will become even more streamlined.
Web Reference: http://www.housefitz.com
0 votes Thank Flag Link Mon Feb 20, 2012
I have been extremely pleased lately with the timeframe for approval. I strongly believe most of the banks have improved!
0 votes Thank Flag Link Fri Feb 17, 2012
David Landman,

What does GMAC mean by 'nothing to ask from them'? Everytime over the years when I hear things may be getting better this type of idiocy comes up. I have had Chase pull the rug out from under us a week before closing with an approval letter in place with a good offer from the buyer. And with no real explanation. BofA has been notorious for fighting us tooth and nail to get great full price offers closed. I hope things are improving but the jury is still out as far as I am concerned. Good luck with your closing.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Fri Feb 17, 2012
The short sale is always different from case to case. We have seen short sales being approved right away, 2 weeks and some short sales being disapproved after approval ( GMAC ) for example. We have a short sale with GMAC that was approved to close after months of comings and goings, when we got the approval, a day before closing the negotiator sent an email stating that they will not accept this closing unless the seller signs aa letter stating that they do not have nothing to request from GMAC after closing. The approval letter expires in 2 days, funds from buyer are at closing table, the GMAC lady negotiator told us that she will not extend the approval letter, so???
0 votes Thank Flag Link Fri Feb 17, 2012
Hi Ed,

I am seeing this as well and LOVING it! The last two that I closed took 4 and 5 months and I was quite thrilled with this timeframe as I had a couple earlier in the year that took 11 and 13 months.

I like what I am seeing and I just keep my fingers crossed (and toes) with ANY short sale that i am involved with.

Thanks,
Brooke Hengst
REALTOR, CDPE
Your Castle Real Estate
p: (720) 988-5952
bhengst1@gmail.com
http://www.brookehengst.com
0 votes Thank Flag Link Fri Feb 17, 2012
Ed,

With every bank with the exception of......wait for it......wait for it......BANK OF AMERICA. It could be the volume that they have or just plain old inefficiencies that have plaqued them for these past couple of years. Most of the rest of the larger banks do seem to be working smoother, quicker, and with better results for our sellers and buyers.

Best,

Chris Schilling
Turbo Realty
0 votes Thank Flag Link Wed Feb 8, 2012
Yes, Ed, something is up.

There is a Bloomberg story today detailing how banks appear to have shifted policies and are, in some cases, taking the initiative to move delinquent loans off their books. Of course, the mentioned BofA pilot program does not affect Colorado. But there is more. There has been an acknowledgement that losses are mitigated with short sales and the banks may not stand on firm legal ground with respect to some mortgages - which has been thoroughly reported by the media. Take a look.

The link:
http://bloom.bg/xDG0oO

From the story:
"Bank of America Corp. sent letters to 20,000 Florida homeowners as part of a pilot program, offering incentives of as much as $20,000, or 5 percent of the unpaid loan balance, Jumana Bauwens, a spokeswoman, said in an e-mail. The program expired in December and the Charlotte, North Carolina-based bank hasn’t decided whether to introduce it in other states, she said. About 15 percent of the homeowners agreed to participate in the program, she said."

From the story:
"Offering enough for the homeowner to put down a deposit on a rental apartment is reasonable, said Sean O’Toole, chief executive officer of ForeclosureRadar.com, which tracks sales of foreclosed properties. Giving tens of thousands of dollars to delinquent homeowners sends the wrong message, particularly if they got into trouble by running up home-equity loans during the housing boom, he said.
'It may make sense for people to walk away, it doesn’t make sense for them to get rewarded for doing it,' O’Toole said. “It’s not the homeowner’s fault that house prices dropped so dramatically, but they have already received months of free rent, if not cash out.”
Cecala of Inside Mortgage Finance said he wonders whether lenders are making big payments on properties with underlying title problems. Evan Berlin, managing partner of Berlin Patten, a real estate law firm in Sarasota, Florida, said representatives of a large bank told him the incentives are primarily given to borrowers when it doesn’t have the proper paperwork needed to win its foreclosure case. He declined to name the bank for publication."
0 votes Thank Flag Link Wed Feb 8, 2012
Ed,

I have had a couple of approvals come in in the 3 month range which is much improved from deals done as soon as last summer. The key for me is to have a great negotiator at the bank, a great short sale coordinator, and hope fully no 2nd and 3rd mortgages. BofA and Chase have traditionally been the toughest to work with. I hope it is improving in the overall short sale market. I look forward to hearing the other answers.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Mon Feb 6, 2012
I have been very pleased with the response time from most lenders lately including Bank of America. Most lenders have greatly improved but of course alot depends on what negotiator you end up with.
0 votes Thank Flag Link Fri Jan 27, 2012
As everyone else has said here it all depends on who the lender is. Two years ago I couldn't stand Bank of America. Today they seem to be one of the easier lenders I deal with. I have had short sales approved in 1 month and the longest one took 18 months to get approved.

Craig O'Rourke
The Advocate Team
@ Keller Williams DTC
303-459-6111
0 votes Thank Flag Link Wed Jan 25, 2012
I agree. Certain banks, yes. Certain banks, well, let's just say it's a bigger nightmare than ever. I'm having an amazingly good experience with Wells Fargo, believe it or not.
0 votes Thank Flag Link Wed Jan 18, 2012
Yes with certain banks. Just had a HAFA short sale with bank of america where they offered the seller 4k with HAFA and 16k from the lender. Might just be that they end up using the 16k as negotiation money but if it all works out seller will walk away with 20k.
0 votes Thank Flag Link Wed Jan 18, 2012
Depends a great deal on the lender. I recently had a deal fall apart (2 lien holders) after five months; not sped up at all!
Chuck Strauss
Your Castle Real Estate
denverhomeguru@gmail.com
0 votes Thank Flag Link Wed Jan 18, 2012
Not in our market, Ed. The long answer is that it really depends on the lender or lenders involved. I've had some banks answer within a month and others leave us hanging for six months... and some banks will give you a clear idea up front with how long you may have to wait for an answer, some are dark all the way through the process. It's so frustrating for the buyers...
0 votes Thank Flag Link Wed Jan 18, 2012
Hello Ed

I was seeing things moving quicker until the holidays came rolling in then everthing came to a halt. They are just starting to get moving again. I am seeing it on both sides from a sale waiting for a exceptance to a seller looking for paperwork to start the process. Hope it gets back to the pre holidays time frame soon.
0 votes Thank Flag Link Tue Jan 17, 2012
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