Saturday, May 16, 2009

Short Sales Real Estate Transactions To Be Improved

There probably isn't a real estate agent in the country who hasn't been frustrated with the "short sale" process. Given the incredible length of time that many sellers' lenders take to give a response on a Purchase Contract, buyers often ask why it is called a "short sale" when it takes so long for the banks to give an answer. Buyers are finding that the "sizzle" of pre-foreclosures/short sales turns into "fizzle" when the banks won't even approve the full list price offer on their short sale purchase contract, and that answer can take months of waiting.

All too often it appears that the banks would prefer to go through the time and expense of foreclosing on a home than to give a timely and reasonable response on a short sale transaction. Then, after foreclosing they often times end up selling it at a lower price than they could have gotten as a short sale.

Finally, this week federal incentives under the Foreclosure Alternatives Program have been announced to encourage the Sellers' lenders to streamline the Short Sale process and provide uniform procedures. Of course, we have no idea how long it will take lenders to "get with the program".

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