LOS ANGELES, CA – August 26, 2011 – (RealEstateRama) — 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.
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.
Comments
No comments yet.
Leave a comment
Related posts:
- C.A.R. places open letter ad in top California newspapers, calls for short sale reform
LOS ANGELES, CA – March 10, 2011 – (RealEstateRama) — In an effort to bring attention to the broken and ineffective short sale process and galvanize industry leaders to help resolve the issue, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today has placed an open letter advertisement in California’s seven largest daily newspapers, calling on lenders and industry regulators to…
- C.A.R. lender satisfaction survey finds short-sale process still broken; lenders make no material improvement
LOS ANGELES, CA – August 5, 2011 – (RealEstateRama) — More REALTORS® characterized closing short-sale transactions as “difficult” or “extremely difficult” than late last year, indicating that lenders’ and servicers’ short-sale procedures have shown little improvement in the past six months, according to the latest Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)….
- C.A.R., Fannie Mae launch short sale assistance desk
LOS ANGELES, CA – March 31, 2011 – (RealEstateRama) — The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today announced it has partnered with Fannie Mae on an initiative designed to help REALTORS® quickly resolve issues that may arise after a short sale offer is made on a Fannie Mae-backed loan. The Fannie Mae Short Sale Assistance Desk (“Assistance Desk”) provides brokers…
- C.A.R. Short Sale Lender Satisfaction Survey
LOS ANGELES, CA – March 10, 2011 – (RealEstateRama) — Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The survey gauges REALTORS®’ experience in working with short sale…
- Short-sale process broken, pushing Central Valley families into foreclosure, REALTOR® survey shows
FRESNO, CA – July 22, 2011 – (RealEstateRama) — More than half of Central Valley REALTORS® characterized closing short-sale transactions as “difficult” or “extremely difficult,” according to a Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The survey gauges REALTORS®’ experience working with lenders in their most recent transaction. The majority of those surveyed dealt with short-sale…
Recent Posts
-
- C.A.R. sends letters to nation’s top lenders, servicers, urging further short sale improvements
- Fewer distressed property sales in July; California pending home sales decline, C.A.R. reports
- Giselle Roohparvar Joins Pircher, Nichols Meeks as Lateral Litigation Associate
- IDX Broker supplies custom WordPress Plugin on website of Broker Kal Ibrahim
- Robert Bushman of Solarsilicon Recycling to Receive Award
Popular Posts
-
- AMB Property Corporation(R) to Hold Analyst/Investor Forum on Tuesday, September 18, 2007
- Conforming loan limits extended through 2010
- Verdict One Releases Directory of Board Certified Attorneys for Consumers
- Inglewood Board of REALTORS® offers Clarus MarketMetrics® as a member benefit
- MEDIA ADVISORY: Royce to Host Combat Fraud Forum