Short Sales=Snail Sales

By
Real Estate Agent with Preferred Real Estate Services

Can anyone tell me why the banks take so long to approve a Short Sale?  I know the standard response....well we have to do this and that and it just takes so long....I do not buy it!

I have talked to a handful of asset managers during my SS Transactions.  They all seem to have 350+ cases on their desks to sell.  Holy Cow!

This is not a new phenomena.  You would think that the banks would create a specific department that would be properly staffed to handle the caseload.  Some are outsourcing.  But jeesh!

I have written letters to everyone I can.  With the same question, "Why?"  What does it hurt by handling these transactions in a timely manner?  Some slip into foreclosure during the whole process.  Hmmmmmm.....how does that benefit the Customer?  Not trying to be negative.  Not meaning to complain.  But can anyone offer me a piece of advice as to the reasoning here?  Is there anyone else I can contact outside of the obvious Realtor Reps and Government leaders.  They have no answer for me.  Just the generic, "Mrs. Clem that is a very good question."  Then I get a polite form letter thanking me for my time and that they are looking into the question.  Then they remind me to vote.  How tacky.  That's just my opinion though.

Thank you!

Comments (5)

Courtney Cooper
Cooper | Cartwright - Seattle, WA
206-850-8841

They cut their staff down to the bone and have to go through the processes that take way too long for the situation.

Oct 15, 2009 08:21 AM
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

I think it depends... here is my take on this.

The bank is merely a servicer that is getting paid whether the mortgage is being paid or not, they get their servicing fees each month so the sooner they approve it, the sooner they no longer get any more money to service it.

My other thought is that there is no oversight and the people working in these short sale departments get paid by the hour and don't really care if they get approved or not.

Oct 15, 2009 08:24 AM
Terry Meyer
Berkshire Hathaway HomeServices Sound Realtors - Olympia, WA

Rachel- You need to contact the supervisors of the asset managers.  I have done this with great success.  I can give you how long it has taken for me with several banks:  BOA-usually 5 months, once you get approval they want to close in 30 days, Citigroup-60days from start to finish, Wells-60days from start to finish.  Several of the smaller loan servicing groups usually run about 60-90days, and I have had some even run longer.  It is a crap shoot doing short sales.  You never know how the bank will proceed.  Until they get some kind of steamlining, things are not going to change.

Oct 15, 2009 08:25 AM
Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

Rachel, so many mortgage loans are "bundled" that many investors are involved. Of course, the ones at the bottom of the list want something (they hope) and those higher up the list will often fight for anything they can get.

Oct 15, 2009 08:49 AM
Rachel Clem
Preferred Real Estate Services - Fredericksburg, VA

Thanks everybody!  You have given me some clarity.  You have also given me some great "pearls of wisdom". 

I appreciate your comments!

Oct 16, 2009 02:15 AM