For release:
\nJuly 21, 2011<\/p>\n
Short-sale process broken, pushing Central Valley families into foreclosure,
\nREALTOR\u00c2\u00ae survey shows
\nLatest lender satisfaction survey highlights glaring issues in short-sale process<\/p>\n
FRESNO, CALIF.\u00c2\u00a0 (July 21) \u00e2\u20ac\u201c More than half of Central Valley REALTORS\u00c2\u00ae characterized closing short-sale transactions as \u00e2\u20ac\u0153difficult\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely difficult,\u00e2\u20ac\u009d according to a Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS\u00c2\u00ae (C.A.R.).\u00c2\u00a0 The survey gauges REALTORS\u00c2\u00ae\u00e2\u20ac\u2122 experience working with lenders in their most recent transaction.\u00c2\u00a0 The majority of those surveyed dealt 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\u0153The survey results demonstrate the ongoing problems homeowners are experiencing with onerous short-sale procedures on the part of lenders and servicers,\u00e2\u20ac\u009d said C.A.R. Treasurer Don Faught, who presented the findings today at a news conference in Fresno, Calif.\u00c2\u00a0 \u00e2\u20ac\u0153Despite assurances by lenders in recent months that they would improve their short-sale processes, clearly, not enough is being done.\u00c2\u00a0 Lenders are out of touch with the realities of the market and the consequences to struggling homeowners, and the result is unnecessary foreclosures that only make California\u00e2\u20ac\u2122s economic problems worse, hindering a desperately needed recovery.\u00e2\u20ac\u009d<\/p>\n
The top three obstacles REALTORS\u00c2\u00ae most frequently cited in working with lenders and servicers during the short-sale process include lenders\u00e2\u20ac\u2122 slow response time to a short-sale package,\u00c2\u00a0 repeated requests for documentation, and poor communication with lender representatives.\u00c2\u00a0 Some REALTORS\u00c2\u00ae even indicated that the lender foreclosed on the home before the short-sale transaction could be completed.<\/p>\n
Some specific REALTOR\u00c2\u00ae comments from the survey include:\u00c2\u00a0 \u00e2\u20ac\u0153Bank will not come down on price; home needs work, but the bank is being unrealistic.\u00e2\u20ac\u009d\u00c2\u00a0 \u00e2\u20ac\u0153Banks say they want to help work things out on short sales, but to be honest, I don\u00e2\u20ac\u2122t believe they care.\u00e2\u20ac\u009d\u00c2\u00a0 \u00e2\u20ac\u0153The whole process is completely flawed.\u00e2\u20ac\u009d\u00c2\u00a0\u00c2\u00a0 \u00e2\u20ac\u0153The bank took over four months to give approval.\u00c2\u00a0 They refused to pay common seller closing costs and repeatedly demanded paperwork that had been sent previously.\u00e2\u20ac\u009d<\/p>\n
Nearly three-fourths (74 percent) of REALTORS\u00c2\u00ae\u00c2\u00a0 said it took more than 60 days for lenders or servicers to return a written response on the approval or disapproval of the short-sale agreement submitted.\u00c2\u00a0 And, half of respondents said it took the lender more than five days to return any form of communication.<\/p>\n
Overall satisfaction with the lenders REALTORS\u00c2\u00ae worked with in their most recent short-sale transaction remains extremely poor, with 77 percent saying they were \u00e2\u20ac\u0153not satisfied\u00e2\u20ac\u009d or \u00e2\u20ac\u0153not at all satisfied.\u00e2\u20ac\u009d\u00c2\u00a0 Moreover, almost nine in 10 (88 percent) REALTORS\u00c2\u00ae said they were \u00e2\u20ac\u0153not likely\u00e2\u20ac\u009d or \u00e2\u20ac\u0153not at all likely\u00e2\u20ac\u009d to refer buyers to the lender to finance future home purchases.<\/p>\n
The news conference held today in Fresno highlighted a specific case in which a homeowner has been trying to short sell his home since August 2009.\u00c2\u00a0 After losing two potential buyers in contract, his lender convinced him to revisit a short sale, but later demanded a cash contribution of $2,000 as a condition of short-sale approval and that he sign a promissory note for a new, unsecured loan of $8,000.<\/p>\n
Additionally, the bank has reappraised the home for an amount 31 percent higher than the initial appraisal, which was conducted only about a year prior.\u00c2\u00a0 The homeowner now has a third buyer in contract but faces foreclosure because the bank is unwilling to consider another appraisal.<\/p>\n
\u00e2\u20ac\u0153We all know that a recovery in the housing market is essential to a recovery in the general economy,\u00e2\u20ac\u009d Faught said in his remarks at the news conference.\u00c2\u00a0 \u00e2\u20ac\u0153Lenders and servicers need to take steps now to improve the short-sale process so that the housing market can begin improving.\u00e2\u20ac\u009d<\/p>\n
C.A.R.\u00e2\u20ac\u2122s Lender Satisfaction Survey was conducted in June 2011 to gauge REALTORS\u00c2\u00ae\u00e2\u20ac\u2122 experience in working with lenders or servicers during their most recent transaction, the majority which were short sales.\u00c2\u00a0 Most of the REALTORS\u00c2\u00ae surveyed dealt with Bank of America, Wells Fargo, and JP Morgan Chase in their most recent transaction.\u00c2\u00a0 The survey was delivered to REALTORS\u00c2\u00ae in Fresno, Kern, Kings, Madera, Merced, Placer, Sacramento, San Joaquin, Stanislaus, and Tulare counties.\u00c2\u00a0\u00c2\u00a0 This survey is a follow-up to a survey conducted in December 2010.\u00c2\u00a0 The latest survey findings show that the situation has not materially improved in the six months since C.A.R. first surveyed its members.<\/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
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Original article posted at\u00c2\u00a0http:\/\/www.car.org\/newsstand\/newsreleases\/centralvalleysurvey\/<\/p>\n","protected":false},"excerpt":{"rendered":"
For release: July 21, 2011 Short-sale process broken, pushing Central Valley families into foreclosure, REALTOR\u00c2\u00ae survey shows Latest lender satisfaction survey highlights glaring issues in short-sale process FRESNO, CALIF.\u00c2\u00a0 (July 21) \u00e2\u20ac\u201c More than half of Central Valley REALTORS\u00c2\u00ae characterized closing short-sale transactions as \u00e2\u20ac\u0153difficult\u00e2\u20ac\u009d or \u00e2\u20ac\u0153extremely difficult,\u00e2\u20ac\u009d according to a Lender Satisfaction Survey conducted … <\/p>\n