The New Short Sale

Is there such a thing as the new Short Sale? That’s one of the latest questions I have been asked. And to be honest I’m not sure how to answer that, but I’ll give it a try.

The New Short Sale or the Old Short Sale are one in the same. All deals are contingent upon lenders approval. If the property has more than one loan that will make the process more difficult than if there were only one loan. If the property has more than one loan and the loans are with two different banks, that will make the process more difficult. To add more confusion to the equation, if the first or second have mortgage insurance then that will make the process even more difficult.

All of this being said, the banks seem to be catching up or at least getting a system established for their Short Sales. Six months ago I was servicing a handful of short sale listings and contacting the bank was very cumbersome. It seemed like every time I called the bank, the file was incomplete (usually due to the bank loosing a fax), or I was connected to a different customer service rep with each call. Need I say more about this unorganized system!?

Ok, so the New Short Sale (for lack of better terms) is a little bit better. Recently when calling on an account, I get to speak with the same person (foot note: this all depends upon the bank) and they usually have everything I have faxed. The banks also seem to have a 6 day system for follow-up. The bank does not want us agents calling every day so there is a new 6 day period that they are asking us to abide to. Honestly, for the most part it’s working. I’ll call on Tuesday morning and then call the next Monday, and believe it or not something as been done to the file. Yes, things are getting done. That’s the good news.

The not so good news is the banks are still behind so Short Sales take a very long time. And remember, if the home does not have an offer, then the bank has not completed an appraisal or a BPO, so we are totally in the dark as to how much the bank will take for the property. Again, buyers beware and be patient. As of today Short Sales are a very painstaking experience and unbelievably time consuming. If your buyer wants to be in the home within 30 days I would suggest looking else ware.