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Short Sales about to get easier?

By
Real Estate Agent with Short Sale Carolina

It looks like there's a change coming in the short sale industry, news of which is leaving a lot of Charlotte Short Sale Listings specialists with eager anticipation. Fannie Mae lead the way about 6 months ago with new requirements that forced many banks to start expediting the approval process for Fannie Mae short sales and also, enforcing the negotiated commission amount to the Charlotte NC REALTOR, and REALTORS everywhere. Short Sale specialists haven't seen a lot of impact from that decision yet, however; this type of decision (while not always imposed immediately) does produce reverberations. Now, the treasury is finally extending its Making Home Affordable plan to the short sale industry after delaying the onset most of this year. This proposal now pays both the first and second mortgage lenders $1,000. to do a short sale but even better, it's paying the homeowner $1,500! I LOVE that part. How cool will it be to do a listing presentation where you can finally offer them something tangible? And probably the best part of this new proposal is that they are stipulating time lines for offer acceptance. 6 weeks to 6 months is no longer an option, their new goal will be 30 days from start to finish. Of course, this is just something that's being proposed by the government and for those of you that know about loan modifications, you probably heard that 6 months into the "Making Home Affordable" plan, exactly 35 people actually received modifications nationwide. They're doing better now, but the banks are large and no change comes quickly for them. Hopefully, in a year or so, buyer agents will stop dreading the short sale and it will be about as easy as a typical REO. Oh and this plan, like the one from Fannie Mae, will block the bank from cutting our commission at close. It's about time, I'm tired of working twice as hard and getting paid 15% less. And I'm sure that most buyer agents would just assume sell the home across the street at 3% and go under contract in 3 days, than to have to sell my short sale listing at 2.5% and wait 6 weeks. Hopefully, soon, there will be no difference in either

Comments(2)

Paul Guenther - WFG Title
WFG NATIONAL TITLE INSURANCE COMPANY - Flagstaff, AZ
The Extra Mile Is Part Of My Regular Route!

Geoffrey,

It sounds good, but is there a start date?

PG

Dec 03, 2009 09:52 PM
Geoffrey Lamb
Short Sale Carolina - Charlotte, NC

None yet; but rarely have I seen the government impose anything on the banking industry with definitive dates. Even when it is a so-called "mandatory" regulation, it's been my experience that the banking industry simply regards it as a "strong suggestion" As a result of this, I expect that it will happen, will just probably take a while to gut underway 100%. We're already seeing the beginnings of change, I'll write about that tomorrow, but overall, my guess is around a year.

Dec 03, 2009 09:58 PM