Comments on: The Short Sale Process Part 2 ? New Regulations Mean an Easier Process http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/ Comprehensive Chicago Real Estate Information Tue, 31 Jan 2012 13:18:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Randy Whiting http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-5392 Randy Whiting Thu, 05 May 2011 15:06:50 +0000 http://www.thechicago77.com/?p=2772#comment-5392 JDM - first off let me say thanks for reading. I empathize with your frustration with the process. Simply put, the reasons that continue to perpetrate lengthy processing time for short sales despite all of these regulations is that they are largely "opt-in" programs with absolutely no governing body to regulate compliance or punish non-compliance. Until we have a set of enforceable rules with someone to police the activities of the banks, the problems will continue as they have. HAFA is nothing more than something for people to BS about, a smoke screen if you will, to distract from the fact that we are still far from a workable solution to the problem at hand. My advice to you is to get as involved as possible in the process. If you are the buyer in this case, it helps to have an educated Buyer's Agent that knows the right questions to ask and the right trees to bark up. You have to make sure that the seller is doing everything that the bank requires in a timely fashion. Does the seller have a short sale attorney interacting with the bank or is it just a Realtor? Many Realtors take on a short sale listing without an understanding of the sheer magnitude of what's required and largely they are the ones that drop the ball. If you have bank acceptance and the internal BPO has been done, you should be receiving word back soon. Often times in my experience what causes delays after the BPO has been done is that the person who did the BPO came back with a number that is vastly different from the offer the bank accepted. If it's much lower, the bank is worried that the appraiser for your lender will not approve the dollar amount. If it came back way too high, they report that to the agent and either ask you for more money, some times a LOT more, or the listing agent/short sale attorney will dispute the BPO (which is not an official appraisal and is not done by a licensed appraiser) with things such as comps etc in an effort to not scare you away. There are a TON of variables in this many of which turn out to be the people involved and how they handle the cards they're dealt. Best of luck. Feel free to reach out when you know more. JDM – first off let me say thanks for reading. I empathize with your frustration with the process. Simply put, the reasons that continue to perpetrate lengthy processing time for short sales despite all of these regulations is that they are largely “opt-in” programs with absolutely no governing body to regulate compliance or punish non-compliance. Until we have a set of enforceable rules with someone to police the activities of the banks, the problems will continue as they have. HAFA is nothing more than something for people to BS about, a smoke screen if you will, to distract from the fact that we are still far from a workable solution to the problem at hand. My advice to you is to get as involved as possible in the process. If you are the buyer in this case, it helps to have an educated Buyer’s Agent that knows the right questions to ask and the right trees to bark up. You have to make sure that the seller is doing everything that the bank requires in a timely fashion. Does the seller have a short sale attorney interacting with the bank or is it just a Realtor? Many Realtors take on a short sale listing without an understanding of the sheer magnitude of what’s required and largely they are the ones that drop the ball. If you have bank acceptance and the internal BPO has been done, you should be receiving word back soon. Often times in my experience what causes delays after the BPO has been done is that the person who did the BPO came back with a number that is vastly different from the offer the bank accepted. If it’s much lower, the bank is worried that the appraiser for your lender will not approve the dollar amount. If it came back way too high, they report that to the agent and either ask you for more money, some times a LOT more, or the listing agent/short sale attorney will dispute the BPO (which is not an official appraisal and is not done by a licensed appraiser) with things such as comps etc in an effort to not scare you away. There are a TON of variables in this many of which turn out to be the people involved and how they handle the cards they’re dealt. Best of luck. Feel free to reach out when you know more.

]]> By: JDM http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-5379 JDM Tue, 26 Apr 2011 19:41:07 +0000 http://www.thechicago77.com/?p=2772#comment-5379 Why would my short sale be taking the long route you describe in your article in this day and age now that these new regulations have come out? Currently day 77 post seller acceptance and submission of packet to bank. Heard BPO was completed but no other news yet. Thanks Why would my short sale be taking the long route you describe in your article in this day and age now that these new regulations have come out?

Currently day 77 post seller acceptance and submission of packet to bank. Heard BPO was completed but no other news yet.

Thanks

]]> By: Randy Whiting http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-5291 Randy Whiting Mon, 28 Mar 2011 19:29:32 +0000 http://www.thechicago77.com/?p=2772#comment-5291 MMC - What you're experiencing is extremely common these days and largely what inspired my article. To answer your question I would need a crystal ball and/or a LOT more information about your situation as short sales have very little (if any) standard practices. The blog I wrote hopefully shed some light on the many delays and pitfalls inherent in the process. The best you can do is make sure you have a knowledgable, diligent agent working on your behalf. I recommend daily check ins with the seller's side to make sure they are on the right path. Having an agent that knows the right questions to ask, and when and where to lend a hand in the process can make the difference between a nine month ordeal with a happy ending and one that leaves you with nothing but wasted time. Are you currently using a buyer's agent to assist you? MMC –

What you’re experiencing is extremely common these days and largely what inspired my article. To answer your question I would need a crystal ball and/or a LOT more information about your situation as short sales have very little (if any) standard practices. The blog I wrote hopefully shed some light on the many delays and pitfalls inherent in the process. The best you can do is make sure you have a knowledgable, diligent agent working on your behalf. I recommend daily check ins with the seller’s side to make sure they are on the right path. Having an agent that knows the right questions to ask, and when and where to lend a hand in the process can make the difference between a nine month ordeal with a happy ending and one that leaves you with nothing but wasted time. Are you currently using a buyer’s agent to assist you?

]]> By: MMC http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-5254 MMC Wed, 16 Mar 2011 18:20:43 +0000 http://www.thechicago77.com/?p=2772#comment-5254 I am a buyer in this painful process and the mortgagors for the sellers do not have any time frame for answering my bid. Why is that? It seems that the sellers suffer and even the mortgagors suffer without a deadline. It would seem that someone is breaching some duty to not get this property off the market. I am a buyer in this painful process and the mortgagors for the sellers do not have any time frame for answering my bid. Why is that? It seems that the sellers suffer and even the mortgagors suffer without a deadline. It would seem that someone is breaching some duty to not get this property off the market.

]]> By: Fannie Mae Lights a Fire Under Short Sales | The Chicago 77 http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-2257 Fannie Mae Lights a Fire Under Short Sales | The Chicago 77 Mon, 07 Jun 2010 19:27:25 +0000 http://www.thechicago77.com/?p=2772#comment-2257 [...] on an eligible loan under HAMP.Guidelines Must be ImplementedAll servicers must implement Fannie Mae’s HAFA for all conventional mortgage loans that are held in Fannie Mae’s portfolio. Servicers are [...] [...] on an eligible loan under HAMP.Guidelines Must be ImplementedAll servicers must implement Fannie Mae’s HAFA for all conventional mortgage loans that are held in Fannie Mae’s portfolio. Servicers are [...]

]]> By: Short Sale and Foreclosure Multi-Offer Strategy | The Chicago 77 http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-2141 Short Sale and Foreclosure Multi-Offer Strategy | The Chicago 77 Tue, 11 May 2010 21:31:20 +0000 http://www.thechicago77.com/?p=2772#comment-2141 [...] number of their borrowers applying for a Short Sale. And given that up until April 5th when the new Short Sale Guidelines came into play, the process was largely unregulated and extremely cumbersome for the banks (still [...] [...] number of their borrowers applying for a Short Sale. And given that up until April 5th when the new Short Sale Guidelines came into play, the process was largely unregulated and extremely cumbersome for the banks (still [...]

]]> By: ruthanntraci http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-1812 ruthanntraci Sat, 27 Feb 2010 05:27:21 +0000 http://www.thechicago77.com/?p=2772#comment-1812 It was very stressful to list my recent home for a short sell, it has numeroua upgrades and it is my home so go figure, and like common sense why would I need a 5 bedroom home? Finally the decision to let it go, thinking finally the stress would be over, what a mess, roommates freak out and want to move, bank still calls for payments, lock box on front door to accommadate nosy people, not serious buyers, anyway have four firm offers, I am so sorry that I even bothered listing signing any properties until the bank had given approval, what a waste of everyones time, has only caused more stress, anyone that tells you this isn't stressful is lying. And the new programs what a joke, there are numerous programs of which the banks do not participate and the lenders and whatever are still the only ones winning............maybe. It was very stressful to list my recent home for a short sell, it has numeroua upgrades and it is my home so go figure, and like common sense why would I need a 5 bedroom home? Finally the decision to let it go, thinking finally the stress would be over, what a mess, roommates freak out and want to move, bank still calls for payments, lock box on front door to accommadate nosy people, not serious buyers, anyway have four firm offers, I am so sorry that I even bothered listing signing any properties until the bank had given approval, what a waste of everyones time, has only caused more stress, anyone that tells you this isn’t stressful is lying. And the new programs what a joke, there are numerous programs of which the banks do not participate and the lenders and whatever are still the only ones winning…………maybe.

]]> By: ruthanntraci http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-1811 ruthanntraci Sat, 27 Feb 2010 05:18:55 +0000 http://www.thechicago77.com/?p=2772#comment-1811 So far I had been trying a modification which took 11 months, they continued with foreclosure and sale date, now they want to work something out, too much to put at backend at this point, have listed short sale, B of A branch doesn't handle it BAC financial does and then Recontrust, when you get someone nice who seems to know what they are doing, then you call the numbers given all three of them and they are clueless, then there are the offers, and once again everyone is clueless, so far all of the programs have been fine, the counselors are great and whatever, then you get too the bank, what a mess, far too many people have just walked away totally stressed out with no results! So far I had been trying a modification which took 11 months, they continued with foreclosure and sale date, now they want to work something out, too much to put at backend at this point, have listed short sale, B of A branch doesn’t handle it BAC financial does and then Recontrust, when you get someone nice who seems to know what they are doing, then you call the numbers given all three of them and they are clueless, then there are the offers, and once again everyone is clueless, so far all of the programs have been fine, the counselors are great and whatever, then you get too the bank, what a mess, far too many people have just walked away totally stressed out with no results!

]]> By: Randy Whiting http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-1653 Randy Whiting Thu, 11 Feb 2010 16:02:09 +0000 http://www.thechicago77.com/?p=2772#comment-1653 Thank you for your feedback. Please tell me and our readers more about these seasoning requirements. I would love it you would share your insights. Thank you for your feedback. Please tell me and our readers more about these seasoning requirements. I would love it you would share your insights.

]]> By: Short Sale Artisan http://www.thechicago77.com/2010/02/the-short-sale-process-part-2-%e2%80%93-new-regulations-mean-an-easier-process/#comment-1645 Short Sale Artisan Wed, 10 Feb 2010 20:00:57 +0000 http://www.thechicago77.com/?p=2772#comment-1645 Good overview, very detailed. There are some seasoning requirements as well which aren't inherently investor friendly. I hear a lot of investors talking about note-buying instead of deed-buying in the future to circumvent that restriction. With all the recent news about Fraud at BofA, a new Executive in the Short Sale / REO dept. at BofA, and 2010 being "the year of the short sale", it sure is an interesting market right now! Good overview, very detailed. There are some seasoning requirements as well which aren’t inherently investor friendly. I hear a lot of investors talking about note-buying instead of deed-buying in the future to circumvent that restriction.

With all the recent news about Fraud at BofA, a new Executive in the Short Sale / REO dept. at BofA, and 2010 being “the year of the short sale”, it sure is an interesting market right now!

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