"Why is it taking so long?" asks the buyer's loan officer of the short sale Realtor.
"Why is it taking so long?" asks the short sale Realtor of the buyer's loan officer.
They both ask the same question. How ironic.
In the spirit of cooperation, I will pose a request at the end of this post.
The loan officer officer has a buyer who is like a finely tuned athlete ready for a triathelon, but that tuning may not last
- The credit is where it needs to be, for now.
- The job stability passes the test, for now.
- Debt ratios are OK, for now.
- Interest rates work for everyone, for now.
- The buyer may have paid for a rate lock, which may expire.
- The conditions may never be so good for this buyer. In this fragile economy, the time to get this done is NOW.
So c'mon, why can't that listing agent get the foreclosing lender to approve the short sale?
On the other side of the equation is the listing agent
- Once the foreclosing lender approves the short sale, strict timelines kick in.
- The foreclosing lender only gives a limited time to close, usually 30 days.
- Last minute prorations or liens may reduce the net amount the lender requires to receive.
- If the closing doesn't occur on time the foreclosing lender may not extend the approval.
- If the closing doesn't occur on time the house may sell at the imminent foreclosure auction where everyone loses.
- Short sales are always fragile, the time to get this done is NOW.
So c'mon, why can't the loan officer hit the closing deadline?
I Am On a Dual Quest:
(1) To understand the constraints imposed on the loan officer
(2) To explain to loan officers the constraints imposed on the short sale listing agent
So Here Are My Questions to Loan Officers and to Short Sale Listing Agents:
- What would you, the loan officer, like to ask the Realtor about the short sale process and timelines?
- What would you, the loan officer, like to tell the short sale agent about your lending and processing constraints?
- What would you, the Realtor, like to ask the loan officer about their constraints and timelines?
- What would you, the Realtor, like to tell the loan officer about the constraints imposed on you in the short sale process?
Please fill up the comment section with everything you wanted to know about the other side. Let's learn from each other. Dissenting opinions and vigorous debate is welcome!