ING BankShort Sale Madness Continues

The Background: Nine months ago my client submitted a totally fair and reasonable offer on a condo which was substantiated with numerous relevant comps. The Buyer submitted his pre-approval for a mortgage, Verification of Funds, and evidence of her high FICO score. The Lender began their process of reviewing the offer and requested the Seller submit his financials so they could determine if they would allow the Short Sale to proceed.

The Process: For three months the "Negotiator" reviewed the file and then requested updated financials from the Seller. For another three months the Lender asked for further information, sometimes requesting the same documentation several times. This went on for another three months.

The Result: Finally (after 9 months), the Lender agreed to accept the Short Sale offer, with the following stipulation - The sale needed to close in 14 days, otherwise the Buyer would be charged a penalty of $100 for each day that the transaction continued.

As we all know, it takes at least 30-days to finalize and fund a mortgage in the current market environment.

With that in mind, how can the Bank make such a ridiculous and unrealistic demand on the Buyer?

What sense of reality, if any, do the people working at the banks have?

Until Banks have a serious "wake-up call", the fiasco with Short Sales will continue.

 
Posted by Stewart Penn - DRE# 01339266 on 05/13/2011 08:41 AM   Comments (9)   Short Sales in the ActiveRain Channel   short sales  
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9 Comments on Short Sale Madness Continues

MAY
13
2011
652,493 Points 9 Featured Posts Outside Blog Called Shot Master

What bank is this?  That is not reasonable at all on the 14 days to close.  
7:52am • #1
555,452 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Stewart,

Banks have this "I am god" complex.

We take our sweet time.

Now, when we have finally decided - you do backflips to dance to our tune.

It's crazy world!

Phil
7:54am • #2
458,367 Points 27 Featured Posts Outside Blog Called Shot Master

Chuck - Click on the cartoon in my post.

Phil - The "Negotiators" are on power trips, using the situation to boost their own sense of importance, when in reality they're just a small cog in a very big wheel.
7:56am • #3
483,084 Points 59 Featured Posts Outside Blog Called Shot Master

Don't you just love it? The bank can take 9 months then allow you only 14 days? If the tables were turned, the bank would owe the buyer $26,000 in late fees.
8:51am • #4
458,367 Points 27 Featured Posts Outside Blog Called Shot Master

Cynthia - You logic is great .....!!!

I should email the Bank and see how they react :)
8:58am • #5
848,845 Points 183 Featured Posts Attended Rain Camp Called Shot Master

I recently got an approval from Wells Fargo which was only good for 10 days and it took that long just to get the second approval letter. We got the extension...without penalty...but at the very last minute, it was not automatic.
9:46am • #6
161,176 Points 5 Featured Posts

Let me guess - Bank of America? This sounds so similar to several "short" sales I've worked. Some of their foreclosures are just as bad - they're too big.
10:46am • #7
235,021 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Corporate lazyiness, too many layers of management... and puffing themselves up by bullying the little guy. Sheesh!
1:11pm • #8
216,123 Points 17 Featured Posts Outside Blog Called Shot Master

ING?  Wow.  Your buyer should recieve an award for sticking it out that long.
2:57pm • #9

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Stewart Penn - DRE# 01339266

West Hollywood, CA

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