When the housing market and economy collapsed, suddenly they became overwhelmed with cases. At the same time, those banks suddenly experienced a huge loss of revenue. Some failed. Others were bought out. The result? Very lengthy processing times because those negotiators/analysts have more cases than they can handle quickly. The banks are adding to staff, but some can't afford to add and train them fast enough. Can't afford? That's their perspective. Actually they are held accountable to board members and shareholders to maximize profits. Whether they can afford to or not, many may disagree.
Bottom line, the loss mitigation department, which is what this department is commonly called, will assign the short sale case to an analyst or negotiator. There may be a long wait period just to get the case assigned. This may take anywhere from 15 to 30 days.
Once it is assigned to the negotiator, and sometimes it can be done beforehand, the negotiator or someone will order the appraisal or BPO. It takes anywhere from 3 to 15 days to get this appraisal ordered, completed, returned, and imaged back in.
After they have the appraisal or BPO, the case is then sent to either the SMI, or the MI carrier, or both. The SMI's and Mi carriers have experienced the same huge increase in cases and they likewise are taking abnormally long to review and approve the short sale. This will add to the length of time it takes to obtain a response.
All together, you can now understand that it may take a long time to obtain approval. We recommend that you expect up to 120 days or more for this to happen.
Our next blog will focus on how often the agent should call the lender.
For more information on short sales, contact Kammeyer Realty Group at 317-570-3800 or visit us at www.KammeyerRealtyGroup.com.
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