Short Sales: Are lenders becoming more responsive?

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Real Estate Broker/Owner with Cimpler Real Estate, Inc.

Coming shortAt the end of August I posted a question regarding Credit consequences of the Short Sale and received many wonderful replies.  Since then I closed several short sales myself. Every time it was a frustrating experience. Based on this experience I came up with a mini-process for short sale and I give it to my potential short sale sellers and buyers, before they decide to go ahead with it. Here it is:

1. Fax or mail the short sale package (missing a single documents or lender misplacing it can cost anywhere from a week to 6 weeks delay) - I have not found a lender that allows you to submit a short sale package electronically!).

2. Lenders enter your information to their computer system (3 days to 2 weeks)3. Short sale package is sent for review. If you have all documents - it can take up to 30 days. If not - see above.
4. If review is positive - lender assigns a negotiator; you might be lucky and receive his/her name and direct email and phone number; it is much easier from this point (of course this is relative)
5. Negotiator sends an offer letter - we usually are getting 2 to 4 weeks for closing, but as you have seen below - it might be shorter.
6. 48 hrs to COE - a real headache. You go back and force to the lender and hope for the best. 

At the same time I have recently heard from a few colleagues that their short sales were much less frustrating and lenders were more responsive. Have you noticed it on your short sales? As volume of short sales is increasing, do you see improvement in lenders response or just opposite - lenders are getting slower and slower.  I would appreciate if you could share your experience. 

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Rainer
25,784
Stephanie Moen (Lazcano)
Oxley Leasing - Houston, TX
Commercial Property Manager and Leasing Agent
my first listing was a shortsale and boy was it an experience but i did sell it.
Mar 13, 2008 03:03 AM #1
Rainmaker
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Artur Urbanski
Cimpler Real Estate, Inc. - Burlingame, CA
Leo and Stephanie, Thank you for sharing. How long did it take?  Did you have one or two lenders?
Mar 13, 2008 03:20 AM #2
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Artur - Interesting post on short sales.  I'm involved in one now on the buyer end.
Mar 13, 2008 04:27 AM #3
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Russ Ravary
Keller Williams Commerce - Commerce, MI
Metro Detroit homes - Michigan Real estate & Mortg
I have never heard it going smoothly.  I here only nightmare stories and lots of agents wasted time.
Mar 13, 2008 06:12 AM #4
Rainmaker
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Artur Urbanski
Cimpler Real Estate, Inc. - Burlingame, CA
Joseph and  Russ - thank you for your comments. It was never easy for me either.  When you that you know it all - something else comes up!
Mar 13, 2008 12:55 PM #5
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William Johnson
RE/MAX Associates - San Diego, CA
San Diego Real Estate Voice, GRI CRS e-Pro CDPE
I have only one short sale currently and I am really not interested in another, though there is a current Buyer considering the advisability of having me write an offer on one. The other one is 6 weeks and still no word beyond the counter the second week. My response is longer. It taking longer from what others are telling me. The banks have so many homes with offers on them, they do not have enough personnel to handle all the files, much less to make the decisions on which ones should sell and which ones are best foreclosed on.
Apr 14, 2008 01:34 AM #6
Rainmaker
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Artur Urbanski
Cimpler Real Estate, Inc. - Burlingame, CA

Thank you for your reply William. Good to hear from you. I did and am doing quite a few of them. Primary reason - to understand how to do them and be able to help if necessary.  What I am finding is that, times are not getting shorter overall, but I spend less time on each of them as I am able to predict events better. Also, while lenders are not faster, they are more responsive as they are more concerned with the unwanted inventory than before.

 

Apr 14, 2008 02:06 AM #7
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Rainmaker
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Artur Urbanski

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