I have watched lenders one by one drop like flies over the last few months. I see commercials telling consumers in trouble to contact their lender, because they want to help them. I honestly do not believe it. Have you ever tried to contact a lender for a short sale packet or to discuss not being able to make the payments and the need for some relief? Fortunately I have not been in that situation, but know several folks who have. They all have a consistent story. The lender would not take their call.
I personally have avoided doing short sales as much as possible. Dealing with the delays and the non-sense from the lenders just does not seem like it is worth the trouble. Buyers I work with so far have not tried to buy one. (thank goodness)
Currently I am working on a REO sale. The bank took the home back through foreclosure and has it listed with a real estate agent. She is a very good agent in my area that I know. We put in an offer and got a verbal acceptance. It has been over 3 weeks and we still do not have documents back from the seller (bank). While waiting to get this in escrow the interest rates have gone up a little. (Bad for the buyer.)
As time passes the buyer's excitement about this property is being replaced with doubt. If rates climb again it may be replaced with moving on.
When we put in the offer, we were told we could get a response in as fast as 24 hours. They must be using the metric system. If this takes much longer, the lender will be looking for another buyer.
So if these lenders are so overwhelmed with so many properties to deal with, would it not make sense to expedite the ones they can and get them out of the way? Wouldn't logic say that they are losing even more money by their incompetence and lack of urgency?
How many more folks out there feel the same as I do? If I had my choice I would avoid dealing with the lender controlled sales. With them creating that negative environment they are causing even bigger loses. Over the last year, I have read many articles and blog posts about this problem, yet if anything the lenders have gotten worse. I guess they simply do not care.