Slow Approval Process for Short Sales Hampers Housing Rebound

Lakewood, California

Experts believe that the current level of housing inventory has to come down for the industry to get into a phase of sustained recovery. Lakewood Short sale transactions offer a win-win-win situation to buyers, sellers, and lenders, and help clear the housing inventory available for sale. While short sales have risen in the last year or so, experts believe that banks are still not fully prepared to approve the transactions in a timely manner which we all have seen if you have worked a short sale. In today’s real world it is very common for delays of six weeks to four months are not uncommon, or banks rejecting a 20% discount at short-sale only to ultimately take the property back and market it at 40 or 50% lower.

Banks have to report their mortgage assets on a mark-to-market basis, and any sale at a price lower than the value in their books will mean a reduction in their reported profits. Bankers also complain that some buyers take advantage of the current situation, and demand a price which is way below the market price, but after counter offer after counter offer the buyer gets frustrated from the transaction, and walks on to another deal down the street.

 Short sales have taken far too long, and with a lot of frustration for everyone involved in the transaction. A lot of experts say “that the faster you clear off this excess inventory the faster you can stabilize home prices.”

Regards,

Bernie Germani

310-918-9102