I find it difficult to explain to potential buyers the difficulties that short sale situations pose. A lot of the time, I give a copy of an article or two describing the problems involved. - and there are many, many different types of problems.
The California Association of Realtors (C.A.R.) released the results of a statewide survey on short sales and the challenges we as REALTORS® face in working with lenders and servicers.
The most vexing problem is the unresponsiveness of the parties involved in the banks, and the length of time it takes to get anything done. But let's not put all the blame in one place: it is true that the sheer quantity of files that one given person in a bank has to deal with is a challenge, whoever is there to do the work. But the differences between banks, departments, locations, makes it really difficult to have a standard approach. When a second or 3rd loan is involved, which is very often the case, then all bets are off...
“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said C.A.R. President Beth L. Peerce. “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”
Bottom line, these transactions are not for everyone. You have to be very patient and go with the flow. You cannot put your heart in the property you want to buy. You should not expect the succession of events to be logical, nor to make sense necessarily. And you have to know that it may not go through, even if you, on your end, have done all you could and should do: fewer than 3 in 5...
Silicon Valley Realtor, - since 1985.