2011 Short Sale Changes
There is good news in short sales for 2011. Many lenders are making an effort to minimize the time it takes to close the transaction but in return they are tightening up their guidelines and will expect seller and agents representing them to abide by these rules. Then toward the bottom, I would like to link the word “questionnaire” to my short sale questionnaire, and have a call to action at the bottom.
Here are some rules in 2011 that major banks, including Bank of America, Wells Fargo, Chase, and Wachovia, will be implementing:
There will be no postponements of Trustee Sales and NO extensions of closings on Short Sale approvals past the approval date. Banks are seeking to clean out their inventory as quickly as possible.
Banks have put systems in place to speed up the short sale approvals. Wachovia has cut their paperwork to 13 pages and will send a representative with the agent to meet the seller and will provide an approval within 14 days.
Once a homeowner goes into default, their bank/lender becomes a “Debt Settlement Company” on the loan.
The Debt Settlement Company will not pay for the negotiator representing you, the homeowner.
These companies are willing to work with REALTORS® who truly have their client and the bank’s best interest in mind.
Other criteria is still important for a short sale to be successful:
A) A qualified seller (see questionnaire to find out if you are qualified)
B) A listing history (this is will be handled by your agent)
C) A qualified and committed buyer
D) A complete short sale package with all applicable documents
E) A solid proposal (HUD)
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