My buyer is mad! Not with me but with the whole short sale process. He has been waiting patiently for 5 months to hear from the bank who has the mortgage on a house he wants to buy. Technically, there are two mortgages - Bank of America and Countrywide. However, the 2nd mortgage holder has already agreed to a short sale. My buyer even hired an attorney to represent him and the seller in the short sale process. Everyone wants this thing closed - buyer, myself, seller, listing agent, buyers lender and probably Bank of America and Countrywide who currently have the mortgages that are not being paid.
So, out of frustration my buyer wrote a letter to President Obama asking for new laws to help with the short sale process. You can read his letter to President Obama here or I copied it below. If you have been involved with a short sale I am sure you can empathize with his pain.
Dear President Obama,
I am currently entangled in a 5 month long real estate "short sale" purchase. For the first time in my 40 year life I have hired an attorney. Despite my efforts and patience I am no closer to purchasing this home than I was 5 months ago when the process started. During the five months I have heard everyone say the short sale process is ridiculous, flawed, dysfunctional, etc. but nobody has done anything about it. Maybe you can!
My suggestion would be to push a bill through requiring lenders to respond to a short-sale offer within 30 days with either an acceptance or a counter offer. If the lender does not respond then a judge/arbitrator would have the ability to approve/disapprove the sale. If a lender does not want to sell the house they can simply respond to the buyer's offer with a counter offer that is really high. This sends the message to the buyer that the lender just does not want to sell the property for a loss and the buyer can move on to a different property. Currently, the lender simply withholds a response indefinitely and everyone involved in the situation sits in eternal limbo.
We, the American people, have poured billions of taxpayer money into saving these lenders from themselves only to have them do nothing to improve the real estate situation. I think the lenders owe us (that’s all of us, buyers, sellers, real estate agents, lawyers, construction workers, mortgage brokers, title companies, appraisers, local governments, etc.) some action.
According to my attorney, Bank of America only has 8 employees for the entire country responsible for negotiating these short sales. How can a company with billions of dollars on the books only employ 8 people for this? We need some pressure on these big companies to meet some reasonable timelines because their stalling tactics are only serving to stall our nation's recovery.
I could give you plenty of details on my situation but in the interest of brevity I have omitted them because I believe they are no different than the thousands of other families that are experiencing this same situation. Please feel free to contact me for further information if needed.
You are the most talented man we have had as president for a long time and we all wish you well.