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
I have had the same scenario. They also tell you it is Phase 2 when it is not. I gt a different answer each time I call in and thre direct line I was given to the negotiator is NEVER answered or calls returned. I am on the 2nd buyer on one right now and they want to start over. It has already been 4 months. The crazy thing is the offer is only$35,000 less than the loan. What the heck???
Addie,
National City Bank deals with short sale fairly reasonably if they are in the first position. However, if they are in the second position, they give an approval to sell, but reserve the right to sue a homeowner in order to recoup for their losses.
I like Wells Fargo also. They have time line 37 days.And I didn't have any delay in process with them ever.
Aside from the lenders noted (which I totally agree with, so far) I've had a bad experience with GMAC also. National City and B of A though take the cake! B of A wastes months of your time only to give you an approval (in CA) with a "may file a deficiency judgement" statement that scares sellers to death!! Ha! Good luck filing a deficiency judgement in CA, B of A.
On the plus side, I've a great experience with HSBC, Wachovia (now part of Wells Fargo), EMC, and Saxon. I've heard word of president Obama issuing a "report card" for lenders' performance in modifying loans and such. I think I know you'll be getting As amd who'll be getting Fs! Keep an eye out for them. Oh, almost forgot....B of A is such a waste of time that I know for a fact of one lender who will not EVEN CONSIDER offers on their REO properties from buyers with B of A pre-approvals. Sad but true.
B of A/Countrywide is the worst HANDS DOWN! Whether it's the fact that you have to fax the package in 10x before they upload it to their system or their refusal to remove the deficiency judgement language from their approval letters, they're a nightmare.
I love working with Wells Fargo/ASC, First Franklin and Litton.
A representative at BofA stated they are working still on combining the systems. If the loan was Countrywide the systems are not talking to the BofA side thus still take long..long...long... It was stated that the BofA loans are faster. They are very behind though they know they have a bad rep on short sales and state they are working on it.
I do agree with the comment they are supporting bad behavior and add also to the issue in general. They also are not foreclosing on properties the owners have vacanted for months or pass year marks. This has to hurt our pockets not just holding on to products we could be selling but the economy. If they are out foreclose ...
I disagree in one of them, Bank of America got way better, I currently have 3 short sales in process and I got a short sale approval 2 business days after I've submitted the package. We closed 10 days after we got the approval. Honestly when it was Countrywide, it took them 4-6 months to get the approval, now it's just a matter of days, it helps a lot if it's a cash offer.
The answer my friend is.....they get paid for servicing the accounts, it is monthly money to the Bank!!!! After closing 4 in the last year, and much net research, I now know this to be true. And to boot, I heard they will be cutting off or stalling any current SS from now until the first of the year, because maybe they will be getting more TARP $$$$$ in 2010?
Comments
National City Bank deals with short sale fairly reasonably if they are in the first position. However, if they are in the second position, they give an approval to sell, but reserve the right to sue a homeowner in order to recoup for their losses.
I like Wells Fargo also. They have time line 37 days.And I didn't have any delay in process with them ever.
On the plus side, I've a great experience with HSBC, Wachovia (now part of Wells Fargo), EMC, and Saxon. I've heard word of president Obama issuing a "report card" for lenders' performance in modifying loans and such. I think I know you'll be getting As amd who'll be getting Fs! Keep an eye out for them. Oh, almost forgot....B of A is such a waste of time that I know for a fact of one lender who will not EVEN CONSIDER offers on their REO properties from buyers with B of A pre-approvals. Sad but true.
I love working with Wells Fargo/ASC, First Franklin and Litton.
I do agree with the comment they are supporting bad behavior and add also to the issue in general. They also are not foreclosing on properties the owners have vacanted for months or pass year marks. This has to hurt our pockets not just holding on to products we could be selling but the economy. If they are out foreclose ...
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