Posted by Vytautas on September 16, 2009 at 4:19am
Short sale process takes months if underwritten by Countrywide.A short sale might be the best solution for home owners trying to avoid foreclosure. It also can be a great opportunity for bargain hunters. Unfortunately, some banks handle short sales so poorly that distressed home owners are forced into foreclosure and potential buyers abandon their dream completely.This is a real lose-lose situation that cost a lot of money for the banks. It doesn’t seem the highest management of the banks pays attention to it. And then who can blame people when they express their disappointment about the big bail-out money received by the banks?One day during a discussion at the meeting we decided it’s time to make a list of the worst lenders. So here it goes, the worst five banks to deal with when it comes to a short sale.5. Litton Loan Servicing;4. Tb&W;3. Washington Mutual;2. National City;1. Countrywide.Countrywide, the “winner” of our list, did not change much after it was acquired by Bank of America. Bank of America still handles short sale transactions way better then Countrywide. In fact, our experience with Countrywide is so horrific that now every time we see somebody whose loan was underwritten by Countrywide we think twice before accepting this listing.In many instances short sale cases, handled by Countrywide, are held for 3 moths or more. By this time potential buyers are approved for the loan, but they change their mind and go elsewhere, as they don’t see any closure in this situation.Every time you call their representatives, they have the same answer: “The file is under review.” This is rarely true, because in too many cases we’ve seen our emails sit unopened for weeks.In the most outrageous case we received notification that our email was opened after 100 days. All that time they kept telling there is a negotiator assigned and the package is “under review”. It is a complete mystery how one could review a package without opening it…The longer short sale is postponed, the more value of the property declines. It would be reasonable to think banks are the ones to care most about recouping as much value as they can. They are the ones that lose money anyway. Countrywide just don’t seem to care at all.On the top of it, if one buyer drops out and we find a new one, the whole short sale process must be started over. Essentially it is the same process, why on earth would you treat it as something completely new? Just to make a file sit for another 90 days or so?Unscrupulous home owners who know how to beat the system use that kind of delays to their advantage. They do not pay their mortgage, stay in the house for up to two years and then just let the property go into foreclosure.The way Countrywide handles short sale encourages that kind of behavior. Instead of helping to clear out the crowded market, the banks like Countrywide makes sure we all stay in a recession longer.What a shame, Countrywide!P.S. Have your own story about dealing with Countrywide? Got horror stories about your experiences with other lenders? Send it to me vitos@realtyusagroup.com
And do not forget to tell your sellers that Bank of America will reserve the right for a deficiency judgment for a future date. I am not sure why anyone would agree to that.
Short sales can be at times challenging but being prepared and educating potential buyers will ease the frustration. One approach I have taken to retain buyers is to offer the property at a 90-120 future value which offers incentive for buyer to go along for the ride. Good luck, together we can make a difference.
Comments
Trinidad@pentasel.com
I have found that every transaction has it's own life. Strategy is key. Knowing the facts upfront helps you manage the risk ahead.
Good luck. Sorry for your frustration...step away and take a positive step.
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