BrokerageIndustry News

The short-sale wrinkle

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Are you wondering why it takes so long to get short sales approved? The real reasons may be very different from what you might believe.It would seem when prices are down and millions of homeowners owe more than their home is worth that it is in everyone's best interest to approve a short sale. All the more so when Mortgage Bankers Association statistics show that a foreclosure costs the lender 30 percent more than a short sale. As any agent or consumer who has tried to close a short sale offer will tell you, closing a short sale is usually a very long and complex process. In July of last year, a Washington Post article stated that Bank of America was going to streamline its short-sale process so that it would only take seven days to obtain a short-sale loan approval. Judging from the numerous blog posts from both consumers and agents, this has yet to occur in a large portion of the short-sale market. To be fair, any lender could complete the approval process in seven day...