What's Really Going On - Lenders Are At 90 Days Out !

Real Estate Agent with BaileyMeadows, Inc - Real Estate Services

I spoke with a few of the lenders that I am waiting on answers for the short-sale listings that I currently have:

One lender received the complete package as acknowledged on 8/21/07.  I found out today that the package was finally received by the negotiator on 11/23/07 (3 Months Later!) and that they are going to try to have an answer by 2/23/08 as they are 90 days out.

Another example is another lender who received the package also in 8/2007 and after so many emails, phone calls and messages that they are still missing some information that is needed in order to submit to the negotiator. Why was this not communicated? I have no idea.

To make a slong story short, I have lost a buyer already which now I have to place the home back on the market to get another offer that they will have to review again. 

I have had quite a few success stories on short-sales now.  I certainly do not call myself an expert at it, but based on my experience on short-sale transactions - I am a bit dissapointed with the response time from lenders. Please share with me you experiences and let me know if this is something more common now.

Comments (10)

Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser

Sheila, I am hearing complaints like this from other agents and when I search MLS listings for comps

(I'm an appraiser) I notice comments about allowing extra time on short sales for lender approval.

I seems it is becoming more widespread and the "deal" buyers are looking for is going to cost

them time spent waiting.   I guess determining the clients time schedule is more important than ever.

Good luck!

Jan 16, 2008 07:27 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com
I have heard to many too many stories like that.  I feel short sales are a lot of work and take way to much of your time.   I can't imagine having to keep a client updated for 4 months.  I bet they are not too happy 
Jan 16, 2008 08:18 PM
Frank Schulte-Ladbeck
Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX
Thank you for the information. Some investors that I work with are exploring short sales, and I had heard that they were longer with more paperwork, but that lead time makes you wonder what is happening in those lender offices.
Jan 16, 2008 09:04 PM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

With the growing number of foreclosures the response time is not going to get any shorter. From what I understand, if you provide everything they require upfront then that helps expedite things.

Isn't it ironic they call them "short sells", shorted money but not on time!

Jan 17, 2008 03:37 AM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Hi Sheila...

It's going to get harder and harder to get these closed. 

In our area we are literally swimming in short sales.

P.S. Personally we have decided to only take the short sales on folks that are in a hardship situation. We are concerned that short sales are being abused.  


Jan 19, 2008 07:30 AM
Sonja Babic
Sonja Babic/PRIME Realty NC, LLC - New Bern, NC
New Bern NC, PRIME Realty NC, LLC

Sometimes it feels like they don't want to sell, does it?I had offer ready once and the guy at BB& T told me he can take it he needs to process foreclosure first?!

Jan 24, 2008 12:43 PM
Jeffrey Dolfinger
24/7 Realty Inc. - Poughkeepsie, NY
NRBA Member
The are overwhelmed and most of the loss mit people are new to the business and are now allowed to make decisions.  shorts are done via committee.
Jan 24, 2008 12:49 PM
Scott Wall
StoneHouse Realty, Inc - Bristow, VA
that's why it's hard to keep people who are trying to work out a positive deal out of foreclosure. Banks could saves Millions /  Billions if they just got their act together and streamline their processes.
Jan 24, 2008 02:08 PM
Shiela Meadows-Bailey
BaileyMeadows, Inc - Real Estate Services - Mountain House, CA
Short-sale is definitely a "patience test". Theres hundreds of documents to be submitted and sometimes over and over again and you have to constantly be in touch with these lenders and keep your clients updated. It is quite discouraging for everyone. However, if we all hang on in there, there is definitely a lot of money in it. I have approximately 16 listings and 17 purchases in my area of specialty and 99% of them are short-sales transactions with 24 in PENDING status. As a listing agent I am in constant contact with each banks on a weekly basis as I have had  two or three lenders say that those they do not call agents/clients back if they do not keep in touch. As agents, we just all have to be "A" players in this crazy "C" market - don't lose hope, because there is always a good in the bad.
Mar 21, 2008 05:26 AM
Dahl Real Estate Group
Platinum Living Realty - Scottsdale, AZ
Scottsdale Luxury Homes
The problem with many lenders loss-mit departments are they are set up save cost not sell real estate.  This is only a problem in sales agents view.   They are therefore under staffed and over whelmed.  You are a sales person trying to sell, they are trying to mitigate costs.  Be patient and follow up, follow up follow up.
Mar 21, 2008 05:44 AM