Senate Bill 306 was just signed into law by Governor Schwarzenegger whereby lenders will have to streamline their Short Sale process.
The bill requiresllenders & Service Companies operating in California to:
1. Either Deny or Accept within 4 days (YES, 4 Days!) a Short Sale offer which includes a HUD or it is assumed to be accepted.
2. When a HUD is not included, they must respond to all Short Sales offers within 21 days.
This is a welcome change by buyers (and their agents) whose frustration is at an all-time high and patience is at an all-time low.
In my personal experience, I have lost countless buyers on my Short Sale listings due to the ultra-ssssslow response from lenders. Not only do they take an unreasonable amount of time but quite often, documentation is lost or misplaced.
In the case of BofA where three levels of Negotiators are required, anytime a Short Sale falls out of escrow the process resumes back to a Level 1 Negotiator basically guaranteeing that the next escrow process will take just as long, if not longer than the previous escrow process.
I have no doubt millions of dollars are being lost by servicers by having such an inefficient, disorganized and ultra-slow Short Sale Process. Eventually, these losses will impact all of us as Taxpayers.
To their credit of Wachovia/Wells Fargo, they have initiated their own 45-day Short Sale Process.
It is my sincere hope that more lenders join Wachovia/Wells Fargo!!!