Market Conditions in Miami>Question Details

Javier Olmedo, Real Estate Pro in Coral Gables, FL

How are agents in Miami doing with Bank of America Short Sales? What have been your time frames?

Asked by Javier Olmedo, Coral Gables, FL Tue Jan 12, 2010

I have closed Short Sales before but it feels like, at least with BofA, they are taking forever and then seem to lose everything...is my experience unique?

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It's definitely not a regional thing. Short sales are processing slowly at the big banks. I closed one with a local bank last year in 30 days. I kept telling the buyer that things should not have gone as smoothly as they did. We got so lucky that the home they wanted was held by a bank in that particular city, and they were highly motivated to clear it off their books.

My own experience with the big banks is that most of the buyers haven't had the patience to wait out the process. They tire of the lack of information and putting their lives on hold for so long, and eventually they bail out of the deal and go buy something else. What sounded like a great investment in the beginning became a big source of stress for them as the weeks (and months) dragged on.

If you've closed a Short sale with any of the big banks before, you know what they require to be in their file for the transaction to receive approval. Make sure those forms are present, dot the I's, cross the T's, and present them with a pristine document right from the start. It really does reduce the timeframe. Coach your clients right from the start that this is the time for them to be patience and flexible (month-to-month) in their living arrangements. It isn't a great time to put your things in storage and stay with friends - you may get a house in the end, but you could lose the friend for wearing out your welcome.

Good real estate agents are going to help the big banks get out of this situation. These departments have new people in them, and I would venture to say a lot of them didn't even have previous experience in banking, much less in real estate transactions. With a checklist in hand and a rubber stamp, they have all the power in determining whether that contract moves forward or gets stuck in the cycle.

In real estate, we adjust to the market conditions. When leasing is in high demand, we lease. When new areas are developing, we're selling new construction. We're in a time of distress for many people in existing mortgages right now. The short sale may be the most viable alternative to foreclosure, so we have to embrace the short sale and learn the best way to aid the bank in getting those files processed. That one transaction might be one of 1,000 sitting on the coordinator's desk. It will get worked, but it will absolutely take time.

Have a blessed day!
Ronda


Ronda Allen, Realtor and Certified Purchasing Manager
CEO of comingsoonhomes
RE/MAX Dallas Suburbs
1 vote Thank Flag Link Tue Jan 12, 2010
Instead of the big banks hiring qualified people to help process the short sales in a timely fashion, they took the government bailout money and gave themselves millions of dollars in raises with the taxpayers money. It is these same taxpayers, who are trying to buy the short sales that would reduce the inventory of distressed properties from the banks. Go figure!!!
2 votes Thank Flag Link Wed Mar 31, 2010
Javier,

Accidently "on purpose" lose the package? This happened in one of our Short Sales "14" times with Chase! Even though we had the fax confirmations, mailed it twice, "return receipt" and they SIGNED for it!, email confirmations, etc.

Some go smoothlly, but other's are a nightmare. Doesn't matter how experienced you are with S/S - when the banks change negotiators 4 times during the process & they're new, hang on for a wild ride!

SoCal has the exact same issues...
Web Reference: http://kathyweberhomes.com
1 vote Thank Flag Link Tue Jan 12, 2010
Javier,
I just closed one and it was a very long processof 8 month,a'm talking about the buyers side.
Web Reference: http://www.rosiemorot.com
1 vote Thank Flag Link Tue Jan 12, 2010
Equator seems to have sped things up, but clearly not to that 10 day response time we were told we'd get! I'm also having a lot easier time if an actual attorney is submitting the paperwork to the bank, vs a title company or individual.
0 votes Thank Flag Link Tue Apr 13, 2010
My last two time frames with Bank of America on approved short sales were 8 months and 8 1/2 months. You now process Bank of America short sales on their equator computer system. Good Luck!

Susan Penn, EWM Realtor
2000 Main Street
Weston, Fl 33326
954-557-5993
penn.s@ewm.com
0 votes Thank Flag Link Sun Apr 11, 2010
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