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Various Authors 9:58 a.m., Oct. 23
The California Association of Realtors has released the results of a survey it conducted in June to gauge agents’ experiences in helping clients negotiate short sales with their banks. In a short sale, the borrower avoids foreclosure, but the bank has to accept less than the full amount it’s owed due to that balance being more than the home’s value. The survey results focused on California Realtors in the Central Valley.
More than half of respondents described working on a short-sale transaction as “difficult” or “extremely difficult.” The three most often cited difficulties were slow response time on a sale request, repeated requests for documentation, and poor communication with lender representatives. Other complaints included banks foreclosing on a property with an approved short sale in place and banks’ unwillingness to accept reduced prices, even when confronted with comparable sales data.
“Lenders are out of touch with the realities of the market and the consequences to struggling homeowners, and the result is unnecessary foreclosures that only make California’s economic problems worse, hindering a desperately needed recovery,” said C.A.R. treasurer Don Faught.
Of those people surveyed, 74 percent said the bank took 60 days or more to respond to a sale request on their most recent transaction; 88 percent said they were “not likely” or “not at all likely” to recommend the services of the lender they’d most recently worked with to a client seeking a new mortgage. Most of the agents questioned cited either Bank of America, JP Morgan Chase, or Wells Fargo as the bank they’d recently closed with.