LOS ANGELES–(BUSINESS WIRE)–Recognizing that short sales will be a part of the California real
estate landscape for years to come and with more REALTORS®
continuing to experience difficulty in closing short sales, the CALIFORNIA
ASSOCIATION OF REALTORS® (C.A.R.) recently sent letters
to the heads of the nation’s four top lenders and servicers, urging more
improvements in the short-sale process.
“As public
attention continues to be focused on the real estate industry in hopes
of signs of a housing recovery, we trust you’ll agree that change in
your short-sale process is critical.”
In the letter, C.A.R. President Beth L. Peerce stated, “As public
attention continues to be focused on the real estate industry in hopes
of signs of a housing recovery, we trust you’ll agree that change in
your short-sale process is critical.
“We believe banks, investors, homeowners, and real estate professionals
all have a common interest in conducting these transactions
expeditiously and efficiently. The housing market recovery is in
everyone’s best interests, and your urgent focus on these issues will
help achieve that end,” Peerce continued in her letter.
In the letters to JPMorgan Chase, Citigroup, Bank of America, and Wells
Fargo, C.A.R. made the following recommendations:
- Provide realistic time frames and then meet those time frames.
- Provide a comprehensive list of information needed upfront.
-
Provide approval requirements upfront that, if satisfied, would assure
the borrower of a short sale approval. -
Disclose whether a loan you service is owned by you or if others own
it. If others own it, provide time frames for approval. Be clear on
who has final authority. -
Pre-approve the short sale and price upon request, prior to the
property being listed. -
Review and respond with an approved offer to a borrower’s short-sale
request within 30 days of receipt of the request. If rejected, be
explicit on why, and how it can be corrected. -
Do not “restart” files from square one if something is missing. Allow
the correction and continue, without bumping it to the back of the
line. -
Have a person available who can inform the borrower about the file’s
status and shortcomings, and who can assist in problem-solving. -
Increase the speed of processing files. Often, a single home goes
through the process numerous times, resulting in months elapsing and
buyers losing interest. The pre-approvals and cumulative files
discussed above will dramatically assist this effort. -
Increase the amount junior lienholders receive. This is a common
reason why short sales fail. -
When the property is cleared for sale, be explicit that there will be
no recourse on the notes as required by SB 458, which now is in effect.
“We are convinced that by correcting these items, your system will run
more smoothly and, in the end, save everyone money and resources, as
well as assist in the housing market recovery. By addressing these
concerns now, there will be great savings in the long run for you, and
for current and future homeowners,” Peerce concluded.
Leading the way…® in California real estate for more than 100 years,
the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org)
is one of the largest state trade organizations in the United States,
with more than 160,000 members dedicated to the advancement of
professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Article source: http://www.businesswire.com/news/home/20110824005283/en/C.A.R.-Sends-Letters-Nation%E2%80%99s-Top-Lenders-Servicers