The first thing we can do is start calling these short pays instead of short sales.
A short sale is always going to be a Looooong sale.
Last time short sales were around in the early 90's, they were referred to as short pays because the funds were short to pay off the loans.
Second point I will make is that the most loans are serviced by one company and owned by another company. The servicer often has a greater incentive to prolong the process and so that is what happens. They drag their feet and therfore end up making more money.
Third point I will make is that the actual owner of the loan is often a very large and complicated organization with more red tape than any one person can manage. So, even if you do have a logical case to present, nobody can do anything about it becuase all of the decisions are made by guidelines not people.
Fourth point I will make is that banks have not figured out how to determine the value of properties yet. They are usually off by 5, 10, or 15 percent and the investors have not figured out how to deal with this yet.
Fifth point is that most realtors have not closed more than 2 short sales. Therefore, less than 30% of all short sales actually close. The other 70% get foreclosed on. I have found that realtors that have closed more than 15 to 20 short sales, generally have a closing rate between 85 adn 95%. They have figured out what it takes to close short sales and they basically have to commit their entire business in order to continue to do so.
I teach classes on short sales to realtors and homeowners. If anyone would like to contact me about my next class, feel free to do so. It's taken me 5 years to figure this stuff out, I might as well share it.
One more thing, the best resource I have seen on what is going on behind the scenes with these banks, watch the independent film called, "Inside Job". If you havn't seen it, it will blow you away!!
Keller Willaims Realty