short sales

What is going on with these banks? At first short sales were taking 3-4 months, the 5-6 months, now some up to a year?? let's just think a bit. If you have defaulted on your mortgage you are not paying it. All the people in the collections department just need to give it a rest. Obviously you are not getting your money, that is not the best use of the banks time. Those people should be in the short sale department helping to move these files along. I help people sell their by Short Sale every day. It is hard enough to find a qualified buyer, but to find one that is willing to wait 4-5 months for a house is even more rare. I cannot tell you the number of times I have had a buyer wait for 5 months and the bank has still not given an approval. The buyer walks away. This benefits no one. The bank has more late fees, interest, attorney fees, and penalties imposed which increases the total due. the market continues to fall, and as realtors we need to secure another buyer. So we reduce the price, then the next offer is even lower and we still have to wait. So why after 4 years in this market don't we have a more streamlined system? BOA has started an online submission, it is new adn I will see how well it works. Foreclosures benefit no one, so everyone needs to jump on board and help the short sale process otherwise more foreclosures are inevitable.

Military Short Sales

Did you know that if you are in the military and are being transferred and cannot sell your home you can apply for the Homeownership Assistance Program (HAP)? You must apply and have your home listed withe a Realtor who will submit offers on your behalf and market the property during and after you have moved. This is especially good for those who cannot because of security clearance move forward with a short sale. If you need more information please contact me with no obligation.

Are Short Sales Selling?

Short sales aren't short, but they are getting there. After a package has been submitted I have been getting my BPO's done within two weeks, and an answer within 2-4 weeks after that. That's a far cry from the 4-6 months you hjear about. As long as when the listing agent submits the package, it is complete. There are two reasons why a short sale will take longer. Number 1, the agent did not have a complete package, The listing agent should be getting all the required documents together and waiting until an offer is received and then submitting a package. Number two, the listing agent is submitting multiple offers. If you are a home buyer or an representing one, ask the listing agent if he/she is submitting multiple offers or taking back ups. The best way is to submit take back ups. The only situation where si would put in a second offer is if the first was an investor low ball offer, that wouldn't be accepted anyway. If the second offer is two thousand above the first, it's not worth it to hold up progress for that. If the bank wants more, you go to the first contract and counter, if they won't go to your back up you already have and submit. By this point the listing agent should have a direct email contact in the department fro a fast response.

Buying a Short Sale

Some things you must know before you decide to buy a short sale. The first and biggest thing is it is not a short process. Once you present and offer, the listing agent must prepare a HUD statement which shows the bank all of the fees it will pay. Along with that the agent must submit the short sale package. The bank will then assign a loss mitigator/processor to the file. Then the property has an appraisal. This is what the banks base their numbers off of. This whole process usually takes 30-60 days depending on the bank, and every bank is different. Then the bank will make its decision to accept the offer, decline it, or counter it. Then of course when an agreement is reach it will be our typical 30 days to close. Keep in mind again that every bank is different. In my experience I usually receive an initial answer with in 30 days of submitting an offer. I have heard of some people waiting 3-5 months. So if you are not in a hurry this is a great way to get a home at a great price.