3 out of 5 short sales in California close.....it could be better, but how do we fix the system?

By
Real Estate Agent with Alain Pinel BRE 01367196

The latest issue of Real Estate Magazine of the California Association of REALTORS (CAR) show

  • In 2010, 20% of home sales in California involved short sales
  • This number is expected to increase in 2011 and 2012
  • 3 out of 5 short sale transactions close (per a survey of 2,150 CAR REALTORS) even when there is an interested and qualified buyer

CAR is encouraging its members to visit its new California Short Sale Website at www.ShortSalesCalifornia.org. This site is described as "a positive resource for understanding the many intricacies of the short sale process and learning how to smoothly navigate this important transaction." 

WELL AND DANDY. We can all get educated on the process. Complete and submit all the necessary forms. Follow up as often as needed. Navigate the maze of processes and systems like Equator.com.

But who is going to teach the set up specialists and negotiators to read and understand the documents we upload?

HOW DO WE FIX STUPID? 

Recent examples

  • Set up specialist rejects buyer's proof of funds because it doesn't have his name on it.
    • DUH! The name is on the upper left of the bank statement. I had to circle and put an arrow pointing to the name and send it back. But in the meantime, I've lost valuable time
  • HAFA escalation negotiator rejects the HUD statement, saying the $3000 relocation credit to borrower is entered twice.
    • DUH! The first page of the HUD statement is the summary page. The second page is the itemization of the charges.

WHAT DO WE DO

Involve your legislator! Call your district congressman if necessary. Especially since distressed properties re a way of life, they MUST get involved.

Be the squeaky wheel. Short of letting your voice be heard on line, agents and their clients should continue to follow up on a regular basis.

Check out http://www.jigsaw.com/ You might be able to find the names/email addresses of bank executives. Don't hesitate to email the CEO.

Join http://shortsalesuperstars.com/. Tons of good information there. Read the forums -- oftentimes, someone proposes a solution, gives names/numbers to call.

TWEET! At least Bank of America has  Tweeter account. Getting through to someone was the easy part. But even that someone was stumped when he saw how often a file was opened and reopened.

 

 

Comments (1)

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Pacita:  I've got to tell you, I'm surprised that the ratio of closed loans is THAT high.  I so commend you on broadcasting and educating to the facts.  AND, your call to action is superb!  Great post!

(PS:  Saw the post on Evelyn Kennedy's blog, so came here to comment too.  Glad Evelyn re-posted so I saw it.)

Gene

Jul 19, 2011 07:34 AM