Question: Why does it take so long to get a decision on my short sale offer?
Answer: A loaded question, to say the least. Response times can vary depending on institution, mortgage holder/investor, mortgage insurance company and the actual representative handling the file. Assuming the real estate agent is doing their job and the paperwork is complete and current, the main reason for it taking as long as it does to get a formal response on a short sale offer is generally due to the sheer volume of short sales being handled by these institutions. It is not uncommon for a short sale representative at one of the larger lending institutions to have between 300 and 500 active short sale files at one time. This not only makes the process inefficient, but also increases the likelihood of poor decision making and things falling through the cracks. As a result, consistent communication with the short sale "rep" is imperative.
John I guess the banks just like agents and the industry got caught with the short sale phenomenom nobody saw coming. I wonder if the lending institution gets to be grueled to keep up with developments like real estate industry does? Thats the reason for the backlog. Poor bank folks dont have a clue whats going on.
In MA we are trying to mount legislation to have lender provide short sale decisions with 45 days. I run the gamut from 2 weeks to over a year so I empathise.
Best to you in 2012
I waited four months to get the short sale closed and the buyers got a good deal. Patience is another word for short sale and short is not the word for the time it takes to get it sold.
John,
Many reasons can contribute to the length of time to complete a short sale. There is red tape, perhaps a second lien release is necessary, maybe the lender uses a useless system like "Equator", or maybe you have some $10 an hour 25 year old working your file. Some lenders/banks are better than others and the asset manager/negotiator can have a lot to do with the speed by which the transaction moves. One thing is for sure, unless there are penalties and guidelines implemented with time restrictions imposed, these lenders/banks will have no incentive to move these files along any faster than they are now. Whatever you do, always be nice, never be demanding and get the name and number of anyone who is helpful so you can request them the next time you deal with that particular lender/bank. Good luck.
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