Have Short Sale Lien Holders Been Naughty or Nice This Year?

Even Santa is surprised by the behavior of banks.

As the end of the year approaches it would do us well to analyze the behavior of the banks. Short sale lien holders have caused many home owners and real estate agents both grief and joy throughout the year.  Many REALTORs have  made a living short selling homes here in the Central Valley, which in most cases beats a sharp stick in the eye. Modesto and Stockton have seen more than their share of the crisis.  While Santa is saying Ho Ho Ho, many feel like their lien holder is saying Ha, Ha, Ha.  But let’s not get too cynical… although it kinda of feels good … doesn’t it?  Surprisingly enough, the banks have had some good behavior this year and like the little snotty nose brats screaming on Santa’s lap at the mall, we should reinforce any good behavior that banks can muster up.

So here we go with a partial list of lien holder behavior.

Good…Equator. While many hated it at first it is an easy system to upload documents and check status.  This really cuts down on the “dog ate my homework” type excuse that banks make when they say that they can not find our five fold faxed paperwork.  Good job B of A and GMAC for using Equator.

Bad…Not extending short sale approvals or postponing trustee sale dates.  Come on… that’s just lame.  When the loss mitigation department is as slow as dirt they often push us into impossible timelines.  Wake up banks, if you want us to hustle do a little hustling yourselves.

Good… the many negotiators that actually have a heart. Yes they do exist and when you meet one they are a true blessing.

Bad.. forcing contributions from sellers and agents to close short sales. One of my deals this year was a first deed of trust (no recourse) one loan short sale.  Seller was unemployed and had used his life savings to keep his mortgage afloat.  The lien holder wanted $40,000 to approve the short sale.  The seller walked.

Good… the goal of banks to streamline the short sale process. Sorry they lied, but isn’t it the thought that counts?  Not really, that’s just an excuse to give a bad gift.

All she wants for Christmas is lien holder approval.

Bad…delays in making minor changes or approvals on small issues. How long can some of this simple stuff take?  Accepting an updated HUD-1 or seller’s financials for example.

Good…Fannie Mae and Freddy Mac protecting REALTOR commissions. Why should REALTORS work three times as long for half the pay.  Oh yeah… I forgot… greedy banks.

Bad…not granting non-buyer specific short sale approvals. When a buyer walks we have to start all over again.  That’s just plain dumb.

Good…Wachovia Short Sales. Fourteen day approval!!!!!!!!!!!!!!!!!

Bad…poorly trained staff at the bank. Double talk, lost files, incompetence….  They are not all that way, but the bad ones can kill a deal.

If you have more to add please comment below.