A bankrupt insulated company or shell in a Pass through Trust cannot hold assets. The servicing agent is representing the Master servicer who represents the trustee who is representing the pass through investors (DOES 1 through 99) got it!
The lender and servicer have only a peripheral interest in the note and lien and that interest is a buyback provision - you see. They get a huge incentive for a foreclosure after 36 months or other term solely from recourse. Then they will move fast to a controlled sale to recoup proceeds from insurance (OC and E&O) and other secondary claims. Rule / code 2923.5 requires the lender to conduct ethical due diligence for 30 days and they will appear interested till that term runs out. Then forget it...itâ€™s a deceptive and unethical process to be proven in court.
Last time (sub prime ) lenders are not a lender.
The other agents are correct on their information. Any agent that tells you that lenders don't care- I have not found that to be the case. What I find is that they are swamped.
It can take the bank 2 weeks to get back to an agent or many months. This can depend on many different reasons. Good news: I am personally finding that the banks are getting back to me quicker. I hope others are finding over all the same.
Some times the bank has all the information a head of time and all they are waiting for is an offer. But, in most cases they don't have everything UNTIL an offer comes in.
The bank then has to do BPOs (typically 2- can be more)- done after the offer is submitted. I had asked a bank about doing it head of time- most banks will not. By the time one is done and an offer comes in can be a big difference in what the place is worth. So they wait until an offer.
Several Reasons for the offer to take time:
The BPO/ Appraisal time- can take a few days just to get someone out there. And if they do more than 1 that adds up on the days
Not all the required paperwork is in. ALL of the paper work should be completed and in at one time- at the time of the offer. A Loss Mitigation specialist at the bank will not entertain an offer that is not complete.
The loss is large. If the loss that the bank has to take is small the faster the offer MAY be accepted. If the loss is large they will take the time to justify that loss.
The Loss Mitigation/ Short Sale (each banks calls it something different) division is swamped
The loan can be investor backed- like Fannie Mae or Freddie Mac and with them the larger the loss the longer they take.
If there are 2 loans with different lenders can take longer- especially if they can't come to an agreement on how much the 2nd holder will get.
Could be more but these are most of the reasons.
I hope this helps you .
An experienced agent on the listing side and buyer side plays a big role in how successful the process is. It is not something that is quick. It can be very successful for both sides. It is not something to be afraid of. It is not for everyone (depends on someone's time frame) but, it can be very worth the wait.
BTW if the listing is bank approved short sale at the price- it usually will say bank approved price.... that takes less time than a regular short sale. That usually means that the agent has had a previous offer and it is back on the market ready to sell.
Most of the banks just don't have the man power to get these completed quickly. It is a process getting these done. You can't start negotiating a short sale (getting the bank what they need) until you have an offer. I haven't heard of anyone getting a senior person/manager to negotiate these. You get who you get. The bank needs to get your offer, do a BPO, speak with investors to agree to the short sale. The documents I completed on my last short sale were over 100 pages and it is slowly requested and completed as you go.
The Carrabba Group
Keller Williams Hollywood Hills