The California Association of Realtors realeased a survey that 43 percent of the sales on distressed homes(short sales) collapse are caused by bank delays. It is a good survey. It shows that real estate agents are frustrated with the bank process of handling short sales.
The short sale system is clearly broken. It has major flaws and must be standardized and streamlined. The agents (70 percent) describe their most recent short sale transactions as difficult or extremely difficult.
I guess it is good to have the press that we get from the survey but it is not news to those of us who do short sales on a regular basis. Th California Mortgage Banker Association spokesman agreed that the process is cumbersome.
No matter how you try to spin the banks reaction to handle short sales, it is not working well. The number of time the home has to be sold. The number of buyers who walk away from the sale. The time that it takes for the bank to respond is not easy.