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Short Sales getting Shorter

By
Real Estate Agent with ADL Sunshine Realty

I don't know about you but I am seeing an improvement among some banks dealing with short sales.  At first I thought it was my imagination because I had actually gotten some calls back from lenders - I didn't always have to chase them down.  But I just got confirmation from one of my sources of short sale information, Chris McLaughlin.  Below is a quote from one of his newsletters.

"Short sales getting shorter

Short sales often take a long time to close, but that problem
may be ending, and it's about time. Short sales are good for
both banks and buyers. A study by Connecticut-based Clayton
Holdings Inc. showed lenders from May to October 2008 lost an
average 37 percent through short sales versus 56 percent on
homes sold after foreclosure. George K. Wonica, chair of the
National Association of Realtors Conventional Finance and Lending Committee, has met with 10 mortgage bankers and servicers in Florida to address the problem, and plans a similar meeting this summer in Las Vegas. He suggests that the short-sale form developed by the California Association of Realtors is a good example of what the industry needs. Additional liens are often a big holdup too, but there could be progress on that front as well. In April, Bank of America, a major holder of second liens, announced that it would accept 5 percent of sale proceeds after real estate commissions and other costs on short sales. Previously, it had sought 10 percent."

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Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Diana - I wish our experience were the same here.  We have one file that has been in negotiations with Countrywide since November. 

May 11, 2009 03:58 AM
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

Not really seeing that yet, but I am putting it out to the universe that I expect that to happen! (ok, too much "The Secret" for you!?).

Seriously though, at some point the banks and lenders have to understand that a short sale is a flesh wound and a foreclosure sale is an amputation.  Neither are desireable but when it's a choice of one over the other, the LESS damaging would be preferable!

May 11, 2009 04:19 AM
Josh Hunter
Longmont Real Estate - Longmont, CO

I too wish I was seeing that on my side. Maybe on the next few? I think they are holding on the the little control they have left, how long they can delay the loss from the books. Who knows, we will just hope that all lenders speed things up a bit. Get some of this stuff off the market.

May 11, 2009 04:51 AM
Diana Lewis
ADL Sunshine Realty - Albuquerque, NM

There is a new directive coming from the government to the banks to streamline their short sale processes.  I'll be writing about it in today's blog.  Check it out at www.treas.gov/press/releases/docs/05142.  Things are going to get easier!

May 15, 2009 02:14 AM