No Delay for Orange County Short Sale Listings. New Fed Rules!

By
Real Estate Broker/Owner with Bristar Realty (Realtor/Attorney) BRE: 01005471

Lenders are notorious for foot-dragging shorts sales in Orange County, California, but new rules are emerging to shorten and simplify the short sale process. Orange County California Short Sale Ladder of Progress

As of April, 2012, however, these new federal rules shorten the time to process short sales:

1. Lenders must act within 30 days;  

2. Lenders must make a final decision within 60 days, and

3. Lenders must provide weekly updates for offers after 30 days.

 

In a traditional equity sale, home value is greater than its outstanding loans. But when outstanding loans exceed property value, the result is a short sale. Unlike the standard sale, a short sale requires lender approval and can stretch-out the process. In 2011, short sales in Orange County averaged over five months.

 

Many homeowners cease making payments during the short sale process. Expediting the sale benefits everyone. The process will no longer tax the patience of buyers, and homeowners will save thousands in carrying costs.

 

For Orange County short sales, these are the most promising changes we've seen in awhile!

 

by:  Brian L. Sirota, Esq.

Posted by
  • Brian L.  Sirota, Esq.  
  • Broker/Realtor/Attorney
  • BRISTAR REALTY
  • Orange County, California 
  • (877) 641-6964  
  • (714) 501-7660
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Topic:
ActiveRain Community
Location:
California Orange County
Groups:
Legal Aspects of Short Sales, Foreclosures, Loan Mods
Short Sales Specialists
Orange County Real Estate
Power of Activerain
Short Sale REALTORS®
Tags:
lender requirements
deedinlieu
renters
new rules
federal guidelines
foreclosure
orange county short sales

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Rainmaker
1,376,928
Ron & Alexandra Seigel
ra@napaconsultants.com - Carpinteria, CA
Luxury Real Estate Marketing

Brian,

We hope that these changes aid you in the short sale process.  After all it important to soothe  "the "unbearable shortness of patience", when it comes to short sales.  These short sales have taxed the bravest of brokers and agents, and have no doubt contributed white hairs to many heads!  LOL A

Apr 26, 2012 03:23 PM #1
Ambassador
850,544
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Brian, is this only in OC or across the country?  You didn't cite the source of the changes, and curious minds need to know.  Thanks.

Apr 26, 2012 03:28 PM #2
Rainer
405,361
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Alexandra, well put!   Yep, I think I do see a few more gray hairs.

Suzanne, excellent question.  The regs are national and come from the National Housing Finance Authority. 

 

Apr 26, 2012 03:55 PM #3
Rainmaker
391,565
Kristine Ginsberg
Morris County, NJ: Elite Staging and Redesign, LLC - Morris Plains, NJ
Morris County, NJ Stager

Hi Brian! I haven't been in the Rain for a few weeks and saw you handsome face on my blog roll and had to stop by and say hi! As usual, you always put out good information for consumers. Hope to see more of you!

Apr 27, 2012 07:18 AM #4
Ambassador
1,297,137
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - San Jose Probate Agent

Brian,  This is good news however I will believe it when I experience it.  At the end of the day, there are no consequences for lenders who do not comply with all of the "musts."

Apr 27, 2012 01:05 PM #5
Rainmaker
483,732
Melinda (Mel) Peterson
Real Estate Cafe LLC - Medford, OR
The Naked Blogger 541-659-1620

Brian ~ How were you able to sneak this in without my noticing???  And I thought nothing escaped me ;)))  It seems that Chase is adhering to these guidelines, as their recent communication with me has been prompt, informative and very cordial regarding two short sales.  I say... Yeah!

Apr 27, 2012 01:57 PM #6
Rainer
405,361
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Kristine, I always dig you stopping by!

Kathleen, you're right, new rules always need teeth to make a difference...but these may have some.

Melinda, I'm sneaky that way!   Chalk one up for Chase....and you!   What's that expression you like?  Yippee Skippy!

Apr 28, 2012 08:27 AM #7
Ambassador
752,906
Debb Janes
The Carl Group, LLC - Camas, WA
REALTOR®, EcoBroker Camas, Washington

I didn't see this before today either - 5/12/2012. Are you flying under the  radar? :) I'm happy with the new regulations too - anything to expedite the process helps all of us - buyers, sellers, agents (lawyers) and the banks. Glad Chase is stepping up...

May 12, 2012 08:41 AM #8
Rainer
405,361
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Hiya Debb,  I am indeed flying low to the ground.   It avoids the radar, but the trees are murder!

May 12, 2012 09:58 AM #9
Rainmaker
608,891
Patricia Feager, MBA, GRI, Cert Negotiations Expert, Military Relo Prof
Keller Williams Realty - Flower Mound, TX
The Little REALTOR® That Could

Brian,

A BIG SUGGEST!

Thank you for providing us with the newest information from the Feds. If there were more attorneys like you, oh what a wonderful world this would be!

Patricia

May 21, 2012 04:24 PM #10
Rainer
405,361
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Patricia, that's a big *blush*   Thank you forr the suggest.  Brian

May 22, 2012 08:06 AM #11
Rainmaker
404,880
Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Brian,

I'm hoping the first accepted offer on a short sale I'm interested walks....then my offer steps up and we can move on. Deals seem to linger and loose lust.

Thanks for stopping by my blog and being such a great Support to Anna. Now we are connected as fiends too!

May 27, 2012 07:11 PM #13
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Brian L. Sirota, Esq.

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