Everyday I either have a conversation, answer a blog post or get a phone call from someone that is completely frustrated with short sales. Just a few years ago the housing market had never heard of a short sale. Now just mentioning the term and people, whether a homeowner, buyer or real estate agent just roll their eyes.
Short Sales have grown to be a popular foreclosure alternative for financially strapped homeowners because it does not impact the credit report as deeply as a foreclosure. However, the short sales need to be approved by first adn second lien holders and often times the process is painfully long and frustrating.
The Obama administration is aware of the frustrations. In mid-May, Treasury Secretary Tim Geithner announced plans to streamline the process by offering financial incentives to mortgage servicers and investors that accept short sales, much in the same way they are rewarded for refinancing or modifying troubled mortgages.
Four months later, homeowners, real estate agents and lenders are still waiting for specific details of how the plan would work. A Treasury Department spokeswoman said an update on the program is expected in a few weeks.
In Northwest Florida short sales represent over 88% of all distressed properties on the market. The national average is that 2 in 3 short sales never close. Team Baranowski has a 100% short sales closure rate for our sellers since we started doing short sales in 2008. The increasing volume of short sales is creating a massive wake of frustration and unnecessary delays from homes being moved off the market. Lenders and service providers such as Bank of America needs immediate and significant changes to how efficiently they process short sales.
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If you or someone you know is looking at buying or selling distressed property…rely on the experts, The Distressed Property Experts of Team Baranowski! Call 850-259-1788 or email us for a free consultation.
Note: The information provided is for informational purposes. No legal advise is given or implied. Please check with a qualified attorney in your area.
I was doing some research on British estate agents when I came across your blog. Just thought I’d say hello.