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Bank Delays Cause Short Sale Homes Sales to Collapse

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781

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.

Don Barrett
Integrity Real Estate Services - Idabel, OK

Tim,

It amazes me that it takes a bank so long to make up their mind and decide what they want to do.

Mar 13, 2011 11:10 AM
Robert McArtor
RE/MAX Components - Fallston Maryland - Bel Air, MD
Top Listing Agent for Baltimore and Harford County

Sooo.....bring back the REO's? It's an easier process...

Mar 13, 2011 11:21 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Don

It is really hurting the housing market in California

Mar 14, 2011 06:29 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Robert

The banks will not foreclose on homes here some owner have not paid on mortgage for over 3 years.

Mar 14, 2011 06:30 AM