Buyer’s need to be educated as to how short sales work. As agents, we need to do a better job educating our clients.
I’ve received many phone calls from buyer’s who are frustrated with the entire process and don’t understand why their offers are not being accepted. They think that their real estate agent is not doing a good job.
Buyer’s are always asking me why short sales take so long.
Currently in San Diego county, the number of available properties below $400,000 is very low. This is creating an environment of multiple offers, thus driving the accepted offer over asking price.
Once the seller has an accepted offer, the short sale package including the offer is faxed to the seller’s lender(s). Many times the lender(s) use this time to start the stalling process. They will claim that the package never arrived and the listing agent will have to re-fax the package sometimes 3 or 4 times before the lender(s) acknowledge receipt of the package. Each time the package is sent, the lender(s) will need up to 15 days for the package to be uploaded into their system. This process can eat up more than 30 days.
Once the short sale package is acknowledged, it can then take more than 30 days for the file to be assigned to a loss mitigation negotiator. So now we are more than 60 days and the negotiations haven’t even begun.
The loss mitigation negotiator is usually given 30 days before they need to get back to the listing agent.
In some institutions, the file is then sent to the investors for final approval. So now, if everything go well, the process has already taken 90 days just to get the go ahead from the lender(s).
When there are more than one lien against the property, all the times lines will be extended.
The short sale approval letter is specific to every buyer. When you see a listing that says the listing has full lender approval that means that a specific buyer has received the approval letter but has cancelled the contract for some reason, usually they just got tired of waiting.
As a buyer, do not enter into a short sale transaction, unless you are willing to wait a long time.
All cash buyers do not receive any better service. The lenders move in their own time frame.
There doesn’t seem to be any motivation for the lenders to move quickly. They are institutions that have internal processes and do not work according to real estate purchase contract timelines.
If you have any questions or concerns, feel free to contact me.
Sincerely,
Barbara Whisenant
Your Friend in the Business
Follow me on Twitter: www.twitter.com/barbarawhis
Be my Friend on Facebook: Barbara Whisenant http://www.facebook.com/barbarawhis
Be my Fan on Facebook: http://www.facebook.com/homes4salesd
Linkedin: http://www.linkedin.com/in/barbarawhisenant
Read my Blog: http://www.barbarawhis.com
Visit my Real Estate website: http://www.Homes4SaleSanDiego.com
Visit my Nu-Skin website: http://barbaraw.nsedreams.com
P.S. It's my intention to build lifelong relationships one client at a time. If you know of a friend, co-worker or family member who has a real estate need, please contact me. Your personal referrals are the greatest compliment I can receive!
A Division of Richard Realty Groups, Inc 5411 Avenida Encinas, Suite 110, Carlsbad, CA. 92008 Cell: (760) 583-2107 eFax: (760) 496-1649 DRE# 01357594
No comments:
Post a Comment