Yes, short sales can benefit sellers, buyers and lenders. However the length of time that they have been taking makes agents, sellers and buyers conclude that they just aren’t worth it. Plus, there are no guarantees. It’s not uncommon to work on a short sale for three or more months and have it fall apart at the last minute. Nobody seems to want to buy short sales these days; real estate agents don’t even what to show those properties. Many people have decided to wait until the property is owed by the bank (REO) instead.
So lenders are having to step up to the plate, reduce time frames and make faster decisions up front. According to a recent survey, lenders lose approximately 19% on short sales and 40% on foreclosures.
Fannie Mae is pilot testing a new program in Phoenix, Arizona and Orlando, Florida that may help. It is for mortgages serviced by Bank of America ’s Countrywide Financial Corp. Within two weeks of receiving the information from the listing agent, they will agree on the price they are willing to accept from the buyer for the property. Hopefully this approach will prove successful and be replicated to other markets and lenders.
Filed under: Short Sales | Tagged: Fannie Mae, foreclosures, REO, Short Sales
