A lender's delays in a short sale is terribly unfair to Buyers and Sellers! Last April, I began working with a seller who needed to sell his property. After doing a market analysis, we aggressively priced it so that we could obtain a timely offer. As we were preparing all of the listing documents, the Seller, working with s short sale transaction coordinator, gathered all of the many documents needed to be submitted to Colorado Housing Finance Authority (CHFA) to begin the short sale process. Seller provided updated info as need by the Lender.
An appraisal was done and the lender advised us of their bottom line for a short sale transaction and we adjusted the asking price accordingly. The real estate market in our area had been very slow, however in February, 2013, we received a cash offer that met the Lender's requirements. Having submitted all of the short sale documents previously, we expected that an answer would be forthcoming in a timely manner from the lender.
Unfortunately, this is not the case. The seller's file has been transfered several times, more documents requested, dozens of messages left by us with no replies and finally, we are informed that the file was transfered again......and due to the amount of time that passed (lender and servicer delays!!!!!) a new appraisal needed to be ordered.
Two weeks after the appraisal was submitted, we are advised this week, almost 4 months after offer was submitted, that the new bottom line for the lender has increased by almost $30K. Buyers are upset, Seller is upset. There needs to be some drastic changes in how short sales and foreclosures are handled. This situation is not fair to any of the parties involved.
Please let your clients, friends and family to voice their concern to CFHA, their Directors, and their Congressmen/women and Representatives that these agencies are hurting consumers, not helping them.