anyone work in a bank or on the insdie...short sales?

Is it realistic to expect that the timeframe will decrease to ten days for an acceptance or denial.....just wondering if it's one of those if it sounds to good to be true it probably is type of policies and if anyone is realyl paying attention to it. Ithought there would be more tak about it as it is a fairly significant step I would think to help move properties since many are short sales today....just curious from those that actually work in this if it is realyl happening or if parameters were put in place to meet these deadlines?

Re: anyone work in a bank or on the insdie...short sales?

I'd FM Beth.

she deals with bank-owned houses (as well as "normal" ones) and is the resident go-to-gal for most things real estate.

Re: anyone work in a bank or on the insdie...short sales?

I have been working with Short sales since 2006.
The key to the time frame, is everyone has to go through a loan mod program 1st, be denied, then go for the short sale.
Most financial institutions are in the program. You can for to REALTOR.ORG to find out more in info. read below for an overview of the program.

HAFA Provisions

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses standard processes, documents, and timeframes/deadlines.
Provides the following financial incentives:
$3,000 for borrower relocation assistance;
$1,500 for servicers to cover administrative and processing costs;
Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

Good Luck
Arthur

Re: anyone work in a bank or on the insdie...short sales?

what about from the buyer perspective though? I've heard it can take a year to find out if the sale is "Approved" by the lender?

Re: anyone work in a bank or on the insdie...short sales?

Re: anyone work in a bank or on the insdie...short sales?

Re: anyone work in a bank or on the insdie...short sales?

I had one short sale that took 7 months to close and another that is over 2 years old on the 3rd buyer waiting to close.

If you are thinking of buying a short sale some simple rules to follow:
Buying a SS with a 1st and 2nd mortgage takes much longer and sometimes it does not work out.
Make sure you have an Attorney that specializes in short sales. Uncle charlie is not going to work.
Do a Title search and CO search to make sure the i's are dotted and the T's are crossed.

Good Luck,
Arthur

Re: anyone work in a bank or on the insdie...short sales?

We tried to buy a short sale in Jan 2009 - waited on it for 5 months and things were just not working out for us b/c there were 2 mortgages and the banks could not work out a deal. Second mortgages/HELOCS can be a PIA and kill the deal...so we had to walk away....That same house still has not sold and it's April 2010. Last time I checked the listing they finally had an approved price - but I think they are on their 3rd or 4th buyer now...

In July 2008 we offered on another short sale (after we swore we were done with short sales) and from the offer to closing was about 6 or 7 weeks. The deal went fast. I think there had been a buyer before us and the deal fell through so the bank pretty much knew the price they wanted and they were ready to do a deal. Also, the sellers had a mortgage with a local Floridian bank which is another reason why things moved so quick.

Hopefully things move quicker with short sales now that they are changing the process.

I still think that as a buyer purchasing a short sale will be no piece of cake, at least until they get the new process ironed out.

We had high stress and waiting is hard. In the end it was worth it, but for us it was a process!