There is a lot of talk about lenders and short sales, and about how the process of negotiating a short sale can be a long and tenuous undertaking. It is a stressful time for everyone that is involved in the transaction.
I hear agents complain all of the time about frustrated buyers backing out of their contracts after months of negotiations. They blame the buyers for not appreciating the complexities of getting a lender to agree to possibly lose money on a loan.
Yet lender can take months to arrive at what would seem to be a very simple decision. And that decision is only based on one fact: Is the bank going to net more from a short sale than they would after going through a foreclosure and placing the property on the REO market?
And for lenders holding second mortgages the answer is even an easier one. Is it better to get something than nothing?
When a lender gets a short sale offer for approval, the bottom line is presented in black and white. It should be a straightforward business decision based on readily available sales data that is there for anyone to examine.
So why would a lender take months to arrive at a business decision that should take only a few hours? It should be a simple take it or leave it, what else is there to think about?
After all, the buyer is getting the property at the current market price, so it's not like they are stealing the house. And the seller must walk away with nothing.
So the lender should realize that a short sale buyer is a blessing and not a bane. They should be treated with the courtesy and respect that anyone in business would treat a potential customer that is going to generate more revenue for the business.
So why is anyone surprised when buyers say that enough is enough? They are simply tired of dealing with an entity that doesn't have enough good business acumen to realize that the LENDER is the only one that benefits financially from a short sale.
And it's high time that they start acting like they understand that fact.