Short Sale Process Needs Fixing

The top Three Obstructions Real Estate Agents Most Frequently Run Across

By Gene Wright

Over half the Central Valley Real Estate Agents typified closing a short-sale transaction as strenuous" or extremely strenuous, in a Satisfaction of Lenders Survey report performed by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The report gauges Real Estate Agent experience in working with mortgage lenders in their latest transaction. A large majority of agents surveyed worked with short-sale contracts Deals in which a lender agrees to accept a reduced amount from the loan amount owing by the current borrower.

This survey results make evident the ongoing issues borrowers are experiencing with arduous short-sale procedures demanded by lenders and service providers, said Don Faught, treasurer of C.A.R, who made a presentation of the results at a Fresno Ca, news conference.

Despite being assured in recent months by lenders that they would try to fix their short-sale methods, it's clear that what being fixed is inadequate. Lenders are not in touch with the the market realities and the consequences on struggling homeowners, which results in preventable foreclosures which only worsens California’s economic situation, hampering a desperately needed upturn.

The top three obstructions Real Estate Agents most frequently run across in dealing with lenders and servicer providers during a short-sale procedure include the lenders extremely slow response in dealing with a short-sale package, recurring requests for additional documentation, plus poor communication with the lender delegates. Some agents even pointed out that the lender went ahead and foreclosed on the property in advance the short-sale deal being completed.

Some specific comments from Real Estate Agents include: Lenders will not reduce the price; as the home needs work, although the lender is not being realistic. Lenders are saying they desire to help work short sales out, although to be truthful, I don’t think they even care. The entire process is a complete sham. The ;ender took more than four months to come up with an agreement. They refused to share normal seller closing costs repeatedly demanding additional documents that had been previously been submitted.

Nearly three-quarters (74 percent) of Real Estate Agents said it took over 60 days or more for lenders or servicer providers to even return a response in writing for the approval or rejection on the short-sale contract submitted. Also, half of the respondents stated that it took over five days for lenders to return any communication type.. Overall lender satisfaction that agents dealt with in their latest short-sale process continues to be extremely poor, while 77 percent communicating that they were unsatisfied or completely dissatisfied.. Furthermore, almost nine out of 10 (88 percent) of all agents said they were unlikely or not very likely at all to send any buyer referrals to those lender for future home purchase loans. New Article Aug 23, 2011

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