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Lenders should revamp their short sale process...

By
Real Estate Agent with Long and Foster Real Estate, Inc.
I think if lenders put into place a systematic process to work with short sales, they could decrease the time processing, save themselves and everyone else money. Since short sales are part of our current market and probably in our future for awhile they should be adddressed as if a permanent transcation. It should be a standardized procedure everyone follows. I think, if the govt wants to help....this area needs to be addressed, may have a better rate of return. I find the lenders are in a flux trying to figure out who does what and when...easier to let go to foreclosure...and thats not necessarily what they want, just the best of options available to them at this time.

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Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
My concern is the people that are making the decision on the process are not involved with the day to day process. The people we talk to have  several files to deal with and they are restricted to doing what the policy allows and do not have a financial interest in the outcome so they don't make decisions based on logic but on the policy.
Apr 10, 2008 02:03 AM
Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe
Tell me about it.  It's getting worse.  My escrow officer reported that some lenders have taken out a "loss protection" insurance policy on many loans.  Kind of like an after the fact PMI that the lender pays for.  They may reject a short sale if they net more by allowing the foreclosure and collecting on the policy.
Apr 10, 2008 02:35 AM