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Sheila Rasak
September 28, 2010 at 6:45 am
You can better believe I’ll be doing quite a bit of research on this article and its content today. This is scary news to say the least especially if it becomes an industry trend.
Paula Henry
September 28, 2010 at 7:05 am
Russell – I am in the middle of a Wells Fargo short sale and what you say is dead on. We made it through processing fairly quickly, where they countered the price and the buyer accepted. Three weeks later they say the MI company wants a $25,000 promissory note (which, BTW, makes up for their loss). Then it has to go to Fannie Mae.
Throughout the process, they have given 24 and 48 hour deadlines for everything; updated pay stub, additional P/L statements, answer to MI company, etc. You either make the deadline or they are closing the file and the short sale will be denied. (their words)
They are playing hardball at the expense of many homeowners and tax payers. Truth is, if they didn’t take so long to complete the short sale, there would be no need to extend the closing date.
Benjamin Ficker
September 28, 2010 at 1:14 pm
Thanks for posting this. A couple of related videos you should see come from a couple of guys in the Phoenix area (not me) that do a ton of short sale business:
shortsalepowerhour.com/wells-fargo-foreclosure-policy-not-changing/
shortsalepowerhour.com/widespread-wells-panic-wasnt-worthwhile/
Definitely worth watching…
Joe Loomer
September 28, 2010 at 3:58 pm
Russell,
Do you believe this is part of the coming wave of “shadow inventory?” Interesting that extensions – which I assume are granted in one or two month increments – will no longer be granted unless approved by the mid-September deadline. Puts those properties coming on the market in the – oh, shall we say – POST election period?
Navy Chief, Navy Pride
Paula Henry
September 29, 2010 at 6:24 am
Interesting, Joe! You may not be too far off the truth.
Rob McCance
September 28, 2010 at 10:02 pm
Possibly banks have analyzed a couple of years of short sale data and come to the conclusion that they are costing them MORE money than foreclosures.
Every time I do the unofficial math, I can’t see how a SS is better for a Mortgagor.
And it’s certainly a ton sloppier.
Paula Henry
September 29, 2010 at 6:27 am
Rob – No doubt the way some banks work short sales, that the cost is higher. Some banks are very efficient and save themselves the headache of having a vacant home in the winter; busted pipes on a slab, homes stripped of copper, vandalism, etc.
I have become very selective of the short sales I take; even then, I run into a brick wall with some banks.
Wayne Johnson
September 29, 2010 at 8:13 am
I guess it’s just in the nature of banks to get the upper hand on some participant and “dump” on them for the benefit of the bank and its shareholders. I wish I could peel the onion back to get at the real numbers on foreclosure vs short sale-which is usually better for the banks bottom line.
CG
September 29, 2010 at 7:45 pm
I specialize in short sales and handle many files with BofA and Wells. This article is pretty spot on. The banks take months to process our files and then give us 24-48 hrs when they need something. Wells used to be good to work with but they have definitely taken a turn for the worse. My recent deal was Wells which held both the 1st and 2nd mortgage. After 120 days we lost the deal because the 1st would not agree to additional monies the 2nd wanted to take at closing from the buyer. Go figure, last I checked they are the same company. It was so bad and even worse the two negotiators at the bank refused to speak directly to one another. Instead they kept batting us back and forth as their messenger. Mind you each time we relayed a message it was 1-2 weeks to get a response. Absolutely absurd! What people don’t realize is each negotiator works for a separate division of Wells Fargo. If groups within the same company can’t figure out how to work together how can we ever hope to get through this nightmare. We need politicians and people in government that know how to run a business properly. These fundamental business principles need to be applied to the banks and all the other organizations that have gotten totally out of control!! The only hope we have is to VOTE!! Our country is in for a rude awakening if we each don’t do our part to save it. We need people in power that know how to run a succesful company and more importantly will do what is right for the people instead of what makes them the most $$$$$$$$$$
Marc Brodeur
September 29, 2010 at 8:18 pm
Only Russel Shaw with his quotable quotes can have a headline like this…..
I love it!
Lets not sugar coat this right?!
Aaron Catt
October 2, 2010 at 12:44 pm
Very interesting article! I thought I had caught wind of this somewhere, but now I see that it must be a reality. I’ll agree on the BofA comment, they have done better streamlining their process.