Short Sales Rate Frustrates Agents

Nothing is more frustrating to a real estate agent than a short sale, and while this article is reporting improvements in the short sale process, you’re still going to need a seasoned real estate agent to help you navigate those choppy waters. I’ve been in the business for over thirty years and would be happy to help you. Feel free to call me at (562) 236-0088.

-Jim
__________
By Jeff Collins, the Orange County Register

California real estate agents say that lenders are unresponsive to efforts to sell underwater homes, killing four out of every 10 short sale transactions that go under contract, a state survey shows.

The California Association of Realtors released survey results today showing that 67 percent of survey respondents said they are not satisfied with the process of approving sales at prices below what's owed on the mortgage, known as short sales.

“The short sale system is clearly flawed and must be standardized and streamlined,” state Realtor President Beth Peerce said. “Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery.”

The Realtor group got survey responses from 2,150 members in December.

The association determined that 43 percent of short sales end up falling apart.

Seventy percent of respondents characterized their most recent short sale as “difficult” or “extremely difficult.” Sixty-three percent said that lenders took more than 60 days to return a written response of the approval or disapproval of the short sale agreement submitted.

Huntington Beach broker Barbara Delgleize said it can take 35 to 40 days to get a response from a lender.

“When you're dealing with a contract, time is of the essence,” Delgleize said.
A California Mortgage Banker Association spokesman agreed that the process is cumbersome but said things have improved dramatically in the past year. But lenders must get approvals from the loan owners, all while dealing with a mountain of foreclosures and other distressed properties.

“I don't doubt there's a backlog of requests,” added spokesman Dustin Hobbs. “You're asking lenders to write down debt. … It's a lot more phone calls, a lot of paperwork, a lot more decisions that have to be made.”

Click here to read "Short Sales Rate Frustrates Agents" on the Orange County Register.

**********

The source of this article is the Orange County Register. Click here to read the rest of the article on the Orange County Register website.

To return to the Investment Property Update home page, click here.