Short Sale Madness Continues

By
Real Estate Agent with Windermere Real Estate - Palm Springs CalBRE# 01339266

ING BankShort Sale Madness Continues

The Background: Nine months ago my client submitted a totally fair and reasonable offer on a condo which was substantiated with numerous relevant comps. The Buyer submitted his pre-approval for a mortgage, Verification of Funds, and evidence of her high FICO score. The Lender began their process of reviewing the offer and requested the Seller submit his financials so they could determine if they would allow the Short Sale to proceed.

The Process: For three months the "Negotiator" reviewed the file and then requested updated financials from the Seller. For another three months the Lender asked for further information, sometimes requesting the same documentation several times. This went on for another three months.

The Result: Finally (after 9 months), the Lender agreed to accept the Short Sale offer, with the following stipulation - The sale needed to close in 14 days, otherwise the Buyer would be charged a penalty of $100 for each day that the transaction continued.

As we all know, it takes at least 30-days to finalize and fund a mortgage in the current market environment.

With that in mind, how can the Bank make such a ridiculous and unrealistic demand on the Buyer?

What sense of reality, if any, do the people working at the banks have?

Until Banks have a serious "wake-up call", the fiasco with Short Sales will continue.

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Show All Comments
Rainmaker
718,733
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

What bank is this?  That is not reasonable at all on the 14 days to close.  

May 13, 2011 07:52 AM #1
Rainmaker
573,698
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Stewart,

Banks have this "I am god" complex.

We take our sweet time.

Now, when we have finally decided - you do backflips to dance to our tune.

It's crazy world!

Phil

May 13, 2011 07:54 AM #2
Rainmaker
476,088
Palm Springs Realtor Stewart Penn
Windermere Real Estate - Palm Springs - Palm Springs, CA
Windermere Real Estate - Associate Broker

Chuck - Click on the cartoon in my post.

Phil - The "Negotiators" are on power trips, using the situation to boost their own sense of importance, when in reality they're just a small cog in a very big wheel.

May 13, 2011 07:56 AM #3
Rainmaker
536,387
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Sonoma County Real Estate Broker

Don't you just love it? The bank can take 9 months then allow you only 14 days? If the tables were turned, the bank would owe the buyer $26,000 in late fees.

May 13, 2011 08:51 AM #4
Rainmaker
476,088
Palm Springs Realtor Stewart Penn
Windermere Real Estate - Palm Springs - Palm Springs, CA
Windermere Real Estate - Associate Broker

Cynthia - You logic is great .....!!!

I should email the Bank and see how they react :)

May 13, 2011 08:58 AM #5
Ambassador
1,009,163
Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

I recently got an approval from Wells Fargo which was only good for 10 days and it took that long just to get the second approval letter. We got the extension...without penalty...but at the very last minute, it was not automatic.

May 13, 2011 09:46 AM #6
Rainmaker
160,070
Colleen McConnell
Tallahassee, FL
Tallahassee Retired Realtor

Let me guess - Bank of America? This sounds so similar to several "short" sales I've worked. Some of their foreclosures are just as bad - they're too big.

May 13, 2011 10:46 AM #7
Rainmaker
238,471
Peggy Hughes
PHA/Peggy Hughes Associates - Professional Moving Organizer - San Francisco, CA
SF NYC LA

Corporate lazyiness, too many layers of management... and puffing themselves up by bullying the little guy. Sheesh!

May 13, 2011 01:11 PM #8
Rainmaker
238,708
David Ames
Zephyr Real Estate, San Francisco - San Francisco, CA
San Francisco

ING?  Wow.  Your buyer should recieve an award for sticking it out that long.

May 13, 2011 02:57 PM #9
Show All Comments
Rainmaker
476,088

Palm Springs Realtor Stewart Penn

Windermere Real Estate - Associate Broker
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