As things stand now, there are two primary drawbacks to making an offer on a short sale:
- The process seemingly takes forever, with agents and buyers waiting on lenders who in turn are waiting for investors to decide whether to accept less than the amount of the mortgage on a given property.
- Most agents and many lenders still have no idea what to do with a short sale, leading to delays while agents try to figure out how to put together a complete short sale package and lenders try to find someone with experience and authority enough to decide.
There’s a further complication in that there’s no consistent process that applies to all or even most lenders; Bank of America requires a different sellers’ financial profile form, for example, than Chase or Wells Fargo, etc.
Comes word today from Dave Liniger, speaking to a group of RE/MAX agents here in Phoenix, that changes are in the works beyond what was announced in October.
In meetings with the Treasury and Housing departments, Dave outlined a plan that would standardize the short sale process (taking out much of the guess work) and, if all goes to plan, would shorten turnaround times on short sale responses from weeks to days.
Each draft of the policy has been met with changes from various stakeholders, Liniger said, but Treasury officials plan to have something in place in the near future.
Much of the focus for the changes center around the Certfiied Distressed Property Expert certification (CDPE), a two-day course that has been offered for the past year. The National Association of REALTORS has developed its own course – Short Sale and Foreclosure Resource certification – which also covers much of the same material.
(Disclosure: though I’ve worked with many short sales and foreclosures, I do not as of yet have the CDPE designation; by this time tomorrow, I’ll be an SFR. In case you happened to be wondering.)
If these changes take hold, 2010 could become the year of the short sale – that’s not from Dave’s mouth, but from mine. The conditions are there except for the consistent ability to get these transactions closed. If lenders and investors finally get on board fully, the short sale market in Phoenix and elsewhere will be far different next year.[tags]Phoenix real estate[/tags]