IT'S OFFICIAL. THE FASTEST AND THE SLOWEST SHORT SALE LENDERS - YOUR MILEAGE MAY VARY.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

JUST IN FROM THE VIRGINIA ASSOCIATION OF REALTORSLenn

Source?  HousingWire magazine 

The Quickest:  GMAC with an averge of 6 months to approve.

The next Fastest:  CitiMorrgage with an average of 7.5 months to approve.

The next-next Fastest:  Wells Fargo with an average of 8 months to approve.

LAST PLACE (SLOWEST) goes to Countywide (Bank of America) with an averge of 13 months to approve.

 

ANY SURPRISES???

HA!

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

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Re-Blogged 9 times:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 08/21/2010 08:26 AM
  2. Josh & Julie Hambarian 08/21/2010 04:52 PM
  3. Gitta Urbainczyk 08/22/2010 10:52 AM
  4. Randy Hooker 08/22/2010 02:05 PM
  5. Tony Marriott 08/22/2010 02:14 PM
  6. Joel Garcia 08/22/2010 04:03 PM
  7. Bob & Leilani Souza 08/23/2010 02:30 AM
  8. Jason Kardos 08/23/2010 02:03 PM
  9. Fran Gatti 08/24/2010 02:45 AM
Topic:
Mortgage / Finance
Groups:
The Ninety-ninth Percentile
Silent Majority
Real Estate Trends
AR Twitter Users
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short sales

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Rainmaker
170,407
Joe Daniels, Broker, Appraiser, Realtor(R),
Personal Service Realty - Jacksonville, FL

So what you're saying is that BOA is the longest of the shorts. I guess that puts them at the top of the list, depending on how you stack it.

Aug 23, 2010 12:37 AM #63
Rainmaker
160,731
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Lenn, these numbers are way off! Maybe in late 2006 and in 2007. Now a days, GMAC, Citi and Wells is around 2-3 months. Actually so is BofA when using Equator. I can even get them approved faster through REDC or Titanium Solutions.

The source has to be outdated. They still include Countrywide.

Aug 23, 2010 12:54 AM #64
Ambassador
2,471,263
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Satar.  The source wasn't dated.  I'm merely passing the info along. 

Countrywide, as an entity within BofA is still processing short sales.

Aug 23, 2010 06:03 AM #65
Rainmaker
50,461
Lynn M. Bower
John R Wood Realtors - Naples, FL
PA, ABR, GRI, RSPS, AHWD, PMN, CNE

Just an FYI I used Equator for a short sale. It was a GMAC loan (2 liens) and it went through in 3 months! You really have to stay on top of the system and get things done ASAP. The flip side is I had a buyer who put an offer in for a B of A home. The lisitng agent was also using Equator BUT the file handler failed to tell the listing agent the sale had been approved. It never went to closing because my buyer found another house. Not a perfect system but stay on top of the info, check at least twice a day for "tasks" and it will happen (unless they forget to tell the good news).

Aug 23, 2010 06:58 AM #66
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Lynn.  Never, never, never will I consider 3 months a reasonable time period in which to process a short sale. 

One of the problems is that the banks have conditioned the consumer to wait, wait, wait.  We agents have little to no choice, but buyers who want to buy, WANT TO BUY NOW.

Worse, there is no accountability for banks who practice delay.

Aug 23, 2010 07:07 AM #67
Rainmaker
337,080
Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities
Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az - Surprise, AZ
Surprise AZ real estate Phoenix West Valley

All I hear from the lenders is how everything is starting to work so well and the closings are coming faster. I sure wish they would prove it to me. Just when things look good and you think it is going to close a new negotiator is assigned and wants all new files from the seller. On and on and on!

Aug 23, 2010 08:51 AM #69
Rainer
22,639
George Walsh
Keller Williams Realty Premier Properties - Livingston, NJ

I am surprised Citi is as good as #2. Pretty sad state of affairs.

Aug 23, 2010 08:59 AM #70
Rainer
20,157
Nan Brennan
Century 21 First Realty - Appleton, WI

I must have been lucky, I got a 2 week approval and 2 month close on a Bank of America sale. Equator (their website for short sales) makes things so much quicker.

Aug 23, 2010 09:42 AM #71
Rainer
33,044
Tim Ireland
First Midwest Bank - Peotone, IL

Maybe I've just had great luck, but I can't believe these #'s.  My average short sale is approved to close in 40 days.  The longest it has ever taken for one of our short sales to be approved was with one with Ocwen and one with BOA and those were 60 and 72 days.  I do hear some stories in the office about one here or there that takes 6 months +, but overall, most everyone here has them approved in 60-90 days max.  Can it be true that the AVERAGE is over 6 months???

Aug 23, 2010 11:02 AM #72
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Tim.  I don't know the source for these stats.  The information was included in my weekly newsletter blast from the "Virginia Real Estate Board".  One would think that they'd have timely info, so I posted it.

However, we all know that with experienced listing agents the time from contract to settlement will be much shorter. 

 

Aug 23, 2010 11:39 AM #73
Rainmaker
225,495
Gene Wunderlich
1st Action Real Estate - Murrieta, CA
Realtor & Legislative Liaison

Our NAR Pres said she recently received commitment from BofA to try to reduce lead time from 117 days to 57 days for aprovals. Sounds like even the 117 days would be an improvement based on these figures. Something's wrong somewhere.

Aug 23, 2010 12:10 PM #74
Rainer
24,635
Brenda Noffert
Realty world Alliance - Wichita, KS

Believe me when I tell you that I am not a fan of BOA (or most banks I have had thepleasure of working short sales with), However, I have to tell you what I was told by the CEO of the MidWest Region of short sales for BOA: They recently (in the last 2 months) have doubled their staff of processors and negotiators.  The first round finished training about 2 weeks ago.  They are still trying to find the bathroom, but they are answering the phones and reading the updates well.

Things are moving a little faster on FHA (non-equator) deals.  I suspect things will continue to improve with BOA because they seem to have finally figured out that short sales are not a "phase". 

Citi Mortgage has been good to me PROVIDING that the knuckle-dragging, drooling, too dumb to work at walmart processors catagorize the file properly and make it a short sale (not a restructure) in the beginning.  If the file is improperly marked at the beginning, it seems to take 48 times longer to get things moving. 

GMAC is quick, in my experience.  They say "no" with lightening speed.  I have not had them accept one single offer in the last year.  They always counter, usually asking the seller to pay in a lump sum or on an unsecured note.  Generally, it seems to take a letter of reminder about the Debt Forgiveness Act of 2007 to get them to back off. 

That is a few of my experiences lately.  It is never a dull moment when it comes to short sales.

Aug 23, 2010 12:36 PM #75
Ambassador
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I've seen these stats before. Who knew 6 months would be the speedy winner?

Aug 24, 2010 02:48 AM #76
Rainmaker
53,117
Sharon Sapp
Century 21 Gold - Reading, PA
For Old Fashioned Service with Today's Results!

Thanks for the confirmation of what we've learned the hard way in this office. Just finished a GMAC one. Had a response within 2 days - with seller assist and a contingency home sale! Great negotiator to work with. Just starting one with Wells. Haven't done one with them yet but others in the office said they weren't too bad. Citi took a couple of weeks but I'll take that over the longest one I've heard of with Countrywide/BOA - 16 months so far and still going. Can't believe the buyer is hanging in there. The offer/counter offer goes into Equator, BOA takes more than 14 days to review it then tells the agent the offer is more than 14 days old so ALL paperwork - from hardship letter to offer needs to be resubmitted. If the client wasn't a relative of his, he would have canceled the listing a long time ago!

Aug 24, 2010 11:52 AM #77
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Sharon.  Some of the actions of the banks are just plain negligence.

Aug 24, 2010 11:56 AM #78
Rainer
5,579
Justin McEntee
Trident Realty Group - Solana Beach, CA

I was working on a deal in Oceanside, CA that was a short sale.  The other agent who is a big name and does pleanty of Short Sales took 8 months to not even give me a response.  I had to keep calling, and calling to figure out that the house had gone into Escrow.  Some of these programs that initiate Real Estate agents to be the point of contact are not helping any.  It has made me questions how the banks process the listings and then who they provide them too.  Is it a friend, family member, or just luck of the draw?  

Aug 31, 2010 04:10 PM #80
Rainmaker
131,925
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

I'm assuming these numbers have changed drastically since this post was written.  A couple years back the process was certainly slow, but we don't wait anywhere close to this long for approvals anymore.  Usually no more than 2-3 months, except in rare occassions.

Jun 21, 2011 12:30 PM #85
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Matt.  The lenders must be giving priority to Florida.  They take 3-5 months on average in Northern Virginia.  We just closed a FAST one in 4 month.

Justin.  Lack os communication is what causes buyers to walk.

Jun 21, 2011 06:16 PM #86
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