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Replies (7)
- Shawn Ryan Rosa, "sryan1980"
- Contributions:493
There are many reasons that short-sales take too long:
1. Too many banks are still not using an online system for processing short-sales (such as Bank of America does with its "Equator" system).
2. Many of the employees these banks are using to process short-sales know nothing about real estate or banking.
3. There are millions of homes that these banks are trying to process. Even if the processing systems are speeded up, things will still take longer than realtors would like because of the number of short-sales being worked on.
1. Too many banks are still not using an online system for processing short-sales (such as Bank of America does with its "Equator" system).
2. Many of the employees these banks are using to process short-sales know nothing about real estate or banking.
3. There are millions of homes that these banks are trying to process. Even if the processing systems are speeded up, things will still take longer than realtors would like because of the number of short-sales being worked on.
- Angie Boggeman, "angie boggeman"
- Contributions:469
Although most of the time delays are with the banks, there are other people who's actions can hold up the process. Such as the owners, getting their paperwork together and submitted and the agents following through with their responsibilities in a timely fasion.
- Metro Indy Expert.
- Contributions:197
I have found that mnore and more agents are becoming familiar with the process and the short sales I have done have actually been pretty smooth for the most part. I do think a lot of it has to do with how versed the listing agent is with the short sale process.
- Nile Morin, "CapeCod Z.i.l.l.o.w"
- Contributions:991
If in the future the banks are found not to have done their due diligence on each property, there may be legal repercussions in the future if they were a part of the bail-out. No one likes the time frame for short sales, however, it is a benefit to anyone trying to sell their home in the traditional manner.
- Wes Black
- Contributions:509
Thanks for the overview.
- Albert Elhage, "aelhage"
- Contributions:33
I am sure the banks would love to answer this question. LOL
- Jesse Storm, "Jesse Storm"
- Contributions:15
Use a Realtor such as The Storm Team from Coldwell Banker Select Professionals that has full time staff that work on nothing but short sales. Some Brokers call them short sale negotiators. This help's speed up the entire thing, due to the fact that that is all they do all day. I had short sales take 6+ months and still never go a response from banks. Now with full time staff doing this I have had short sales to closing in as little at 2wks. Also our staff can normally get the bank to pay for title insurance, full 7% commissions and 500 broker fees for the sellers and buyers. Even in the state of Pennsylvania where it is common for the buyer to pay for title insurance.
Do you ever wonder why short sales take so long?
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- 5.0/5.0
- (10 reviews)
Contributions:22Why to banks not want to address short sales? Why does it take so long? Well, first you have to understand what a short is to understand why a bank makes this their lowest priority of business decision. A short sale is essentially a request to a bank to take a loss on a property loan, where the home owner is still paying their monthly mortgage and has not gone into default or foreclosure. The home owner is usually still paying their home mortgage, but the home owner needs to sell their home. The problem is, they owe more money to the bank than the home is worth to a new buyer (i.e., they more more to the bank than its current "market value").
For an example of a Short Sale, numbers, etc, and for the rest of the post, please see...
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