LOS ANGELES \u00e2\u20ac\u201c Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders\u00e2\u20ac\u2122 and servicers\u00e2\u20ac\u2122 short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS\u00c2\u00ae (C.A.R.). The survey gauges REALTORS\u00c2\u00ae\u00e2\u20ac\u2122 experience in working with short sale transactions \u00e2\u20ac\u201c transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner. <\/p>\n
\u00e2\u20ac\u0153It\u00e2\u20ac\u2122s disappointing that less than three in five short sales close, despite every effort by the REALTOR\u00c2\u00ae, home seller and potential home buyer,\u00e2\u20ac\u009d said C.A.R. President Beth L. Peerce. \u00e2\u20ac\u0153Many underwater homeowners who have been hit by the recent economic crisis can no longer afford to stay in their home and just need to sell their home as expeditiously as possible are unable to largely because of the complex and cumbersome short sale process,\u00e2\u20ac\u009d she said. <\/p>\n
Of the REALTORS\u00c2\u00ae surveyed, 94 percent participated in a short sale transaction during 2010, demonstrating the surplus of short sale listings in today\u00e2\u20ac\u2122s real estate environment. <\/p>\n
The most frequent problems REALTORS\u00c2\u00ae cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays. <\/p>\n
Nearly three-fourths (70 percent) of REALTORS\u00c2\u00ae said that closing their most recent short sale transaction with a lender or servicer was \u00e2\u20ac\u0153difficult\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely difficult,\u00e2\u20ac\u009d while only 10 percent said it was \u00e2\u20ac\u0153easy\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely easy.\u00e2\u20ac\u009d <\/p>\n
\u00e2\u20ac\u0153The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,\u00e2\u20ac\u009d said Peerce. \u00e2\u20ac\u0153Instead we\u00e2\u20ac\u2122re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.\u00e2\u20ac\u009d <\/p>\n
More than half (63 percent) of REALTORS\u00c2\u00ae said that lenders took more than 60 days to return a written response of the approval or disapproval of the short sale agreement submitted. Only 4 percent said they received a written response in less than 14 days. <\/p>\n
Additionally, 44 percent of REALTORS\u00c2\u00ae said that lenders took more than five business days to return any form of communication to REALTORS\u00c2\u00ae. Only 14 percent said lenders responded \u00e2\u20ac\u0153within one business day.\u00e2\u20ac\u009d <\/p>\n
\u00e2\u20ac\u0153The survey results show that the short sale system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures,\u00e2\u20ac\u009d said Peerce. \u00e2\u20ac\u0153Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery,\u00e2\u20ac\u009d she added.<\/p>\n
Further illustrating faulty communication problems, 64 percent of REALTORS\u00c2\u00ae were \u00e2\u20ac\u0153not satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153not at all satisfied\u00e2\u20ac\u009d with the timeliness of lenders\u00e2\u20ac\u2122 response to their inquiries, while only 22 percent said they were \u00e2\u20ac\u0153satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely satisfied.\u00e2\u20ac\u009d <\/p>\n
Moreover, nearly three-fourths (74 percent) of REALTORS\u00c2\u00ae were \u00e2\u20ac\u0153not satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153not at all satisfied\u00e2\u20ac\u009d with the amount of time it took to hear whether a transaction was approved or disapproved, while 16 percent said they were \u00e2\u20ac\u0153satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely satisfied.\u00e2\u20ac\u009d <\/p>\n
In overall satisfaction with the lender they worked with, 67 percent of REALTORS\u00c2\u00ae were \u00e2\u20ac\u0153not satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153not at all satisfied,\u00e2\u20ac\u009d while 19 percent were \u00e2\u20ac\u0153satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely satisfied.\u00e2\u20ac\u009d <\/p>\n
C.A.R.\u00e2\u20ac\u2122s Short Sale Lender Satisfaction Survey was conducted during the last two weeks of December 2010 to gauge REALTORS\u00c2\u00ae\u00e2\u20ac\u2122 experience in working with lenders or servicers of short sales, bank-owned properties (REOs), and foreclosures. The survey was delivered to 20,000 REALTORS\u00c2\u00ae, with 2,150 responding to the survey. <\/p>\n
Leading the way…\u00c2\u00ae in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS\u00c2\u00ae (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. <\/p>\n
Original article at http:\/\/www.car.org\/newsstand\/newsreleases\/sslendersurvey\/<\/p>\n","protected":false},"excerpt":{"rendered":"
LOS ANGELES \u00e2\u20ac\u201c Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders\u00e2\u20ac\u2122 and servicers\u00e2\u20ac\u2122 short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS\u00c2\u00ae (C.A.R.). The survey gauges REALTORS\u00c2\u00ae\u00e2\u20ac\u2122 experience in working with short sale transactions \u00e2\u20ac\u201c transactions … <\/p>\n