Sticking Up For the Banks

Recent proposed laws are requiring  banks  to respond to short sale offers within ten days. While waiting on  banks  to respond is certainly not one of my favorite things, often, in my experience, it may not be the  bank’s  fault.

Some Realtors in their zeal to secure a listing and sale do not work with the  bank  in advance. Then when an offer is tendered, the  bank  is surprised. For a successful short sale to take place, the seller should establish his “hardship” with the  bank . An income shortfall should also be established. Perhaps a modification should be attempted.

Many  banks  have in place a fast track short sale process. Wells Fargo/Wachovia and  Bank  of  America /Countrywide do. Once hardship and income shortfall are established, with very little paperwork, these  banks  will have a Brokers Price opinion done and provide the seller with a preapproved sales price. They will respond to all offers within 10 business days. Short sale  bank  managers are in place to respond quickly.

The above mentioned  banks  hold the vast majority  of  America’s  mortgages.  Bank  of  America  receives over 30,000 calls per day. The average foreclosure without damages to the home and theft of appliances, etc. costs the  bank  $60,000 to $70,000. They would much prefer a short sale to a foreclosure as it is cheaper.  Banks  are now providing moving expenses to their short sale customers. They may excuse all deficiencies on primary residences.

 Banks  are being made the villain again. Our Government required them to lend money to people who couldn’t or wouldn’t pay them back. Government also encouraged them by telling them they could sell these loan portfolios to Freddie Mac & Franny Mae. The officials running these agencies then cooked the books to receive large personal bonuses ( These same gentlemen are now part of the current administration). Freddie & Fannie failed. The  banking  and housing crash followed. All had to be rescued and bailed out by the US treasury – Freddie, Fannie, and the  banking  industry.

Real Estate will recover as will the  banking  industry. Short sales are part of the process. Those of us in the business can make it run smoother if we just do our homework. Those of us who don’t will probably face lawsuits in the not too distant future. Blaming the  banks  for that will not hold water.

If you have questions regarding a short sale in the Phoenix Arizona area see us at http://ralphandtricia.com/shortsales.htm

Source by Ralph Bredahl

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Sticking Up For the Banks