Is is a new short sale dilemma? It sure could be and has happened, making it twice as difficult in getting that short sale approval.
I have started seeing an even more frustrating trend happening with my short sale homes that I currently have listed. Is this going to be the norm?
A seller has his home on the market and it is a short sale. (A short sale is when a seller is trying to sell a home he owns for less than what he owes on it. A seller's lender is going to be "shorted" a certain dollar amount in a payoff of the loan). The name by no means, indicates that it is a "SHORT" process because in general it can be and has been quite lengthy.
Now I am finding another step in the process is bogging it down even more....
The short sale lender sells the loan off to another lender/servicer/investor while the home is actively listed for sale.
You say so what? Well here's what happens. You have contact with your original lender (can be a fairly slow process but you have things in the works). You finally acquire a very patient buyer willing to sit and wait for lender approval. You work hours and hours on acquiring an approval and you hear you should have an answer very soon, only to find out at the last minute that the loan was sold to another servicer/investor/lender. Guess what?
You get to start the process ALL OVER.
Okay so we start the process over in the hopes the buyer will understand and that we are doing everything possible to get an approval. Please hang in there Mr. Buyer!
But the DOWNTIME from when the original lender sells the note to the time the NEW lender gets the file and information, assigns and gets a contact name...... WELLL......
Let me just say that I have been waiting and will be waiting more than a frustrating time for the original lender to SHIP the package (even though it was sold weeks ago) to the new lender; at which time I will then have to wait for the new servicer/lender to place the file in the right hands of an asset manager who will be handling it.
I currently have TWO short sale transactions literally HANGING in LIMBO with the files sitting in a box WAITING to be shipped and assigned. No one will take responsibility and/or help. "I am sorry, you will have to wait for the new asset manager to be assigned." Same response each time.
A new fad and dilemma with short sales? I sure hope not. Anyone else experiencing this?