Industry NewsMortgage

Short sales fluster California Realtors

Survey: Half of attempts to get borrowers out of underwater homes fail
Published on Mar 8, 2011

Four out of 10 California Realtors say the last short sale they handled didn't close, and most are frustrated at how long it takes lenders to respond to offers and other inquiries.The California Association of Realtors says a survey of 2,150 members highlights the lack of standardization among lenders, long approval timelines, and a reluctance on the part of lenders to approve short sales.Asked in December whether their most recent short-sale transaction closed, 57 percent of California Realtors said it did, and 43 percent said it did not.Once Realtors had submitted a short-sale agreement to lenders, 63 percent said it took more than 60 days to get a written response approving or disapproving the sale. Only 4 percent said they received a response in less than 14 days.Nearly half (44 percent) said it took more than five business days to get a response to other types of inquiries about a short-sale property, with only 14 percent saying lenders responded within one day.Some 64 percent of ...

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