Why are short sales so slow

Posted by Brad Officer on Tuesday, December 20th, 2011 at 5:23pm.

Why Are Short Sales So Slow

#1 reason for short sales taking so long:  Seller Documents

SPEED!  It's what we want in a short sale, and it's the #1 killer of short sale deals.

After a short sale goes under contract and gets submitted to the bank for processing, we work behind the scenes to keep the buyer's side updated with all the latest and greatest news from the short sale process.  My assistant spends hours a day on just this one task, and is in my opinion, one of the most important tasks in the short sale:  Communication.

As the updates trickle in from the short sale lender, they usually request updated documents or additional documents.  The typical request:

  • Bank statements
  • Pay stubs
  • Arms length addendum
  • Specific terms added to listing agreement or purchase agreement

The speed at which the SELLER/Home Owner get's these docs to the attorney's office can either heavily influence the speed of the approval, or delay for as much as 30 days or more.

Every short sale lender's negotiator/processor has hundreds of files they are working with.  We are lucky if they look at our file even once per week.  (no amount of calling, emailing, threatening, etc will improve this).  If the request comes out for updated docs and the Sellers drag there feet for a week or two, go ahead and add a month on the short sale approval.

Fastest Short Sales:  (assuming the house is sold & under contract)

  • Sellers are ultra responsive on any request by the short sale attorney.
  • 24 hours or less to get new / updated docs to the short sale attorney's office.
  • Sellers stay engaged in the process and keep the house in top condition.  This cuts down on Buyer's remorse.

Thank you in advance for Sharing!

 

Give us a call at 904-234-5196 if we can help you buy or sell real estate in Jacksonville, FL.

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Listing information last updated on June 25th, 2019 at 9:38am EDT.