Why Do Banks Hate Short Sales?
Or do they? This question can often arise when buyer & seller alike are faced with short sale situations, as it sometimes feels like the short sale lenders are “dragging their feet” in approving a short sale. I recently attended the Asian Real Estate Association of America (AREAA) National Convention in San Francisco and heard from top executives at Chase, Wells Fargo and Citibank regarding short sales. All three of them stated that their organizations are actively seeking ways to improve the short sale process and that they definitely prefer short sales as an alternative to foreclosure. The numbers show that banks can lose between 10-45% in a short sale but that loss becomes 50-75% in a foreclosure situation. I also heard a broadcast from Bank of America just this week, stating that they are planning to “increase their short sales next year by 60-70%” and now have over 3000 people in their short sale division.
So if banks want to do short sales, why does it seem so long and difficult to get an approval? That’s a subject for another blog…
Jean Joh
Short Sales & Foreclosure Resource (SFR) Certified – National Association of Realtors
www.jeanjoh.com
Some Bank Websites re: Short Sales
Bank of America: http://tinyurl.com/ssbofa
Wells Fargo: http://tinyurl.com/sswellsfargo
Citibank: http://tinyurl.com/ssciti
Chase: http://tinyurl.com/sschase
Is history repeating itself?
In recent months the entry level Real Estate market has shifted and become for some people, a competitive sport. If priced correctly homes aren’t lasting past the first week’s open house as buyers are frantically racing to submit offers. Supply is low and demand is high and we all know with that combination multiple offers arise. What’s good for the goose isn’t necassarily good for the gander.. is history repeating itself? Is what is occuring now exactly what we saw a few years ago when home prices soared and multiple offers were just expected? There are many factors that come into play, some may argue this market is nothing like the one we saw a few years ago. We can say for sure banks have tightened up their guidelines to put it gently. Unless you can prove you qualify, you don’t get approved. Interest rates are lower and home prices have dropped so buyers in today’s market essentially have more buying power. Appraisals have been tightened and often times more then one is necessary to get approved by the lender. With that said, is it really all that different? Are consumers so eager to purchase a home for fear they will “miss the boat” that they are over extending themselves to make it happen. Hopefully with the tightened lender guidelines, history won’t repeat itself. What are your thoughts as I would love to hear them…
Nicole Machado www.mve2day.com
Are you even trying to close this deal??
I recently entered escrow on an REO property (Foreclosure) representing the buyers. With any escrow you enter you want to make sure you have your ducks in a row, but when it comes to REO transactions make sure you read the fine print. Some include passive contingencies which mean that if you don’t pull contingencies in writing on the said date written in the contract, they will pull them for you. This runs the risk of potentially forfeiting your client’s good faith deposit, if for some reason you have to end up canceling the transaction. Read more
Mixing Business with Pleasure… does it actually mix?
Have you ever felt obligated to use a family member when it came to a business deal? While most of us have, has it ever left you wondering if that was the best decision? In some cases, it is an ideal circumstance. While in others it may be an uncomfortable situation that you were strong armed into. Read more
The Great Depression, take two?… NOT A GOOD THING…
I usually don’t partake in discussions that revolve around politics, however, after last nights debate and the passing of the “bailout” I feel obligated to do so! Read more
What do you get when you cross an FHA Loan with a Short Sale?
In my case, a roller coaster ride of emotions ending with a happy client in his new home. Last week, the escrow was closed successfully on my client’s short sale purchase of a home with an FHA loan. When the process started, I knew that it might not be easy. Read more
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