is it true that lenders are speeding up the short sale process?

Asked by Key1592001, Rahway, NJ Tue Sep 20, 2011

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15
Tina Lam, Agent, San Jose, CA
Tue Sep 20, 2011
Today, lenders have better processes and better trained people in place to handle short sales. So, while they aren't necessarily trying to speed up the short sale process, it has been going much faster than the early days of the housing crisis. Another element to consider is the lien holder outside the bank. These investors have come to accept the reality of the long-term market price drops and aren't holding on to hopes for a miracle turn-around in housing. Hence, they're signing off on short sale applications much faster and accepting the haircut on their investments.

Still, the process varies from bank to bank and realtor to realtor. For example, I got one of my short sale listings approved yesterday within just 2 months. From here, it's about a 45 day time frame to close escrow. This means in a near ideal scenario, a properly handled short sale can close within 4 months. Meanwhile, I still see many other short sale listings going on for 6-8 months, so I would consider that typical for the industry.
Web Reference:  http://www.archershomes.com
1 vote
Alain Picard, Agent, Puyallup, WA
Wed Sep 21, 2011
From what I've heard short sales are closing faster than before.
0 votes
Tina Lam, Agent, San Jose, CA
Wed Sep 21, 2011
Jerry,
I've had luck with BofA and WF. Smaller banks and Citi are just less responsive.
Web Reference:  http://www.archershomes.com
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Sep 21, 2011
Hi, The one part to the process that I read about speeding up is the pre approval of a shortsale. This way an agent listing the property will already know the number the bank will accept.

Chris
Web Reference:  http://raveis.com/chrispagli
0 votes
Fernando Fer…, Agent, Elizabeth, NJ
Wed Sep 21, 2011
Hello Key, most lenders are strimlining the process, still a bit of work to get it done, but we get it done, we are currently working on several shortsales in your area, if you would like more info e mail me or call , we have extensive training and certifications on the process. Good luck. PS: we just closed on 400 Koeing st, regular sale.
0 votes
Jordan Paint…, Agent, Grand Rapids, MI
Wed Sep 21, 2011
There does not seem to be any consistency in the Michigan market as to the short sale process. I received an offer on a short sale I had listed with three months left in the redemption period and was unable to complete the transaction prior to the foreclosure. The lenders appear to be overwhelmed by the volume of loans in default and are unable to process them in a timely manner.
0 votes
allan erps,A…, Agent, Pearl River, NY
Wed Sep 21, 2011
I have no knowledge of this "speed up process". Welcome the thought though!!
0 votes
Jon Porrey, Agent, Fenwick, MI
Wed Sep 21, 2011
If it makes a difference, I was recommende by WF to the seller to be her agent. She had already started the process and received a postponement of her foreclosure for a set period. From that point on, I have had direct contact with WF, including submitting offers to them and negotiating counters etc., until now when I just about have WF's approval for the current purchase agreement, although that has taken about 2 weeks.
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Wed Sep 21, 2011
Jon that makes this even more interesting, your having good luck with WFF and I'm stuck in a living nightmare with them. Well it goes to show there's no consistency in this process and that every transaction is unique in its own right I guess. Thanks for sharing.
Web Reference:  http://www.sjrates.com
0 votes
Jon Porrey, Agent, Fenwick, MI
Wed Sep 21, 2011
The one moving the quickest so far is Wells Fargo, and the slowest is USBank.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Wed Sep 21, 2011
The process has to run it's course; and there's no incentive to speed up the process.
So it is not true.
Web Reference:  http://www.321property.com
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Wed Sep 21, 2011
Jon and Tina if you don't mind me asking, what banks are you dealing with?
Web Reference:  http://www.sjrates.com
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Wed Sep 21, 2011
Wow how I wish this was true, I can tell you from personal experience that Wells Fargo has gone in the complete opposite direction and seems to have slowed things down to a grinding halt. They seem to only be able to review one page at a time, which requires an entire committee, after the review they ask me for more paperwork, and this has gone on for six months straight so far. I have had five offers on the property and lost four of them so far due to their lack of speed, but it only hurts them, the first offer I had was for 147,000 and each offer was less then the previous one and now we are down to 115,000 and if they dont accept it fast, they will be getting even less money after that. I come to have found out that WFF has no clue how a normal real estate transaction works, and they have completely wrote their own set of rules as to how it should work and the process is entirely backwards and require baby steps, NO LIE. There process involves approving the homeowner to sell the property, whereas we normally have the buyer get approved to buy the property, which we still have to do actually so as you can imagine it takes twice as long and is twice as confusing. To make matters worse they only work with you via email and are very blunt with you. When you call them on the phone they couldn't be more ignorant, and then they play games with you, my favorite game of theirs is "What security question are they going to ask me for this time?" On top of everything else, they are not proactive at all. No one from WFF will ever call you or email you, it's entirly up to you to make contact with them each and every time, thats working with the people to really accomplish things WFF, way to go! Heres something that will blow your mind as a Realtor, WFF can not understand that liens on the property are supposed to be paid at settlement from the proceeds of the sale. They actually require that the leins be paid off by some other means, they do not care how, but they do not allow liens to be paid from the proceeds of the offer, you want to talk about frustrating!!!! I know I am forgetting some other things here as well because I could go on and on about how screwed up WFF is in working out a short sale, in fact I pity the Realtor who has to do business with this company, if your one of them people, or if your a home owner in distress and have a mortgage or some other lien with Wells Fargo Financial, GOOD LUCK to you.
Web Reference:  http://www.sjrates.com
0 votes
Jon Porrey, Agent, Fenwick, MI
Tue Sep 20, 2011
Some yes, some no. I have two properties currently pending as short sales. One was where the buyer started the process just as he listed his home. We signed a deal three days later (above the banks mark for selling) and it will be 4 months since the deal was signed the first of October. They hope to close in 6.5 months. The other where the seller was already in process with her lender, now has an offer and hopefully this will close in 8 weeks. Hope that helps.
Jon Porrey
Greenridge Realty
0 votes
Dominic Piet…, Agent, West Hollywood, CA
Tue Sep 20, 2011
Key,

Lenders are trying to speed up the short sale process however there are other factors involved like having to possibly deal with 2 different lenders if there is a second loan on the property. If you are working with a local agent they can sometimes speak to the listing agent to find out more details for you.

I hope this helps.

DOMINIC PIETRANGELO
KELLER WILLIAMS HOLLYWOOD HILLS
323.497.2596
dominic@kw.com
http://www.theurbanhomesgroup.com
dre#01860025
0 votes
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