Why do Short Sales take so long ?

By
Mortgage and Lending with Amerifirst Financial

I sponsored a CE class today and the subject was short sales. I have so many people, realtors and borrowers, question why the short sale process takes so long.  In this class today Tim Smallwood the instructor had a great expanantion. First off the Banks were not ready for the housing meltdown and still are not staffed or organized enough to get things done in the timely manner that they should. Another reason for the length of time it takes to get a short sale approval is that the bank is just the servicer of the loan, there are investors that have to be contacted and the investors have to approve the short sale terms, sometimes that isn't as easy as it sounds. There could be a pool of investors and all parties have to be in agreement. You have to also take into consideration that if the owner of the home has to have applied for a modification and prove a hardship in order for the bank to approve a short sale. If this process hasn't been initiated yet or the bank is still waiting for paperwork from the owner this may be holding up the short sale as well. There is much more to gettting a short sale approval than just sending the offer to the bank and the bank saying yes or no. If you want more details or information on this subject feel free to contact me - John Hansen - Amerifirst Mortgage - 602-573-5626

 

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