Timelines have improved tremendously. There are still some hold-ups but overall response time is much better.
In some cases banks have a moratorium on foreclosing on certain types of loans until 2011, Read more about this here: http://janegrant.wordpress.com/2009/06/07/temecula-real-esta
Every situation is different and every property history is different, and also each bank is handling their inventory a little differently. Banks are not wanting to spend extra money on more staff...remember that banks are in the business of making loans and were not prepared for the huge amount of defaults that has taken place.
Buyers who are patient can find very good opportunities for purchasing Real Estate.
So sometimes they hire others to participate in the process, unfortunately those people are trying to respond to the Gov., come up with excuses and then there's that math stuff..
It's a very slow process at this time, but it can be done.
Good luck, Dunes
- ascertain the Sellers have a strong probability of qualifying for a short sale
- make sure the Sellers agent knows what s/he is doing
- to make sure you offer is strong
- to follow up on the status.
You also need to know the market value of the property since part of the approval process will include a broker price opinion. That will let you know how your offer stands compared to the value the bank will assign.
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This is an excellent question.
For the bank to understant the often complex financial situation associated with a property, it can take considerable time. They are often left with unraveling a tangled financial mess consisting of not only a mortgage but a second mortgage, line of credit, liens, divorce/separation, taxes, HOA fees etc.
What we see from the surface can appear simple but below the surface can be a nightmare.
P.S. If you are not working with a Real Estate Agent please give me a call and I will be happy to try to help you out.