SHORT SALES OR LOOONG SALES?

By
Real Estate Broker/Owner with REO PRO REALTY

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!!!

 

Comments (3)

Robert Solomon/Broker/Owner
I Net Realty Group, Inc. - Hudson, FL

This is great for California Realtors,sellers and buyers I hope that all states follow there lead so that we can get this back log of homes sold and off the books of these banks and get things moving again.

Sep 17, 2009 08:49 AM
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ
CRS, GRI, SFR

Let's hope that BofA gets there act together!!!  I'm in Arizona and I hope that the policies stick for our loans as well!!  Continued Success!!!

Sep 17, 2009 10:26 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I need to read more about the Bill. I know CAR issued a memo today!

Oct 05, 2009 09:23 AM