I have a Suntrust short sale that we submitted with a CASH offer - our homeowner received a call from them informing him that they will not review the package until the home has been on the market at least 90 days! Is anyone familiar with this bizarre criteria. I have been in real estate for over 25 years and never been told I sold the home too fast!
Appreciate any feedback/suggestions.
Rebecca - Suntrust is bizarre there's just no getting around that one. I don't want to take anymore of them because they're process and thinking is so outdated. The post I wrote just yesterday regarding Best Advice for Short Sales is perfect for you - read and you'll see why!! http://actvra.in/TC2 90 days makes absolutely no freaking sense in our hot market homes sale within hours/days with up to 10 to 20 offers. And then we should sit on that for 90 days. Duh. No!!
Thanks! I close at least 5 short sales/month (mostly BoA as I do the DTS leads) and we have NEVER had this be an issue. I have even closed with Suntrust in the past and did not get this pushback so this must be something new - UGH!
I have been trying to do a short sale for a year with Suntrust. They constantly lose stuff, they take so long that there are significant changes in the market, up the price, cut the costs they will pay and have caused two buyers to just throw up their hands and say forget it. I have not figured out the magic path there. They are so backwards and behind what is going on.
Your response to that MORONIC statement should be:
"Great.....are you serious? So I can tell my client to QUIT PAYING YOU AND LIVE IN THE HOME FOR FREE AND THEN YOU WILL HELP THEM?!?!?! My clients, Mr. and Mrs. Homeowner are going to be SOOOOO relieved"
Know who you are dealing with......lower level negotiators that are reading to you from the scripts they are given.....use a line like above to get them off their scripts and you will get your deal done.
Also - take the time to escalate your file up the food chain.
Find out who the Investor is and ask them: "Are you seriously going to pay servicing fees unnecessarily for the next 3 months?"
If you know what to say and who to say it to there will be no waiting......
Email me at [email protected] if I can be of any assistance (contacts or otherwise).
I have a new book on SS negotiating coming out in the next 30 days (yes....cheap plug but it WILL help if you are doing this non-sense on your own)!!!
I think SunTrust and other lenders are using the 90 day rule due to Fannie and Freddi..Part of the issue, I think, is that they believe the market's increases will ultimately net them much more in 90 days vs selling the homes at the point of SS. However, they have no issue allowing for a foreclosure notice if the homeowner is late on payments and causing unnecessary issues that requires major hurdles to overcome. It's crazy....The Helping Homeowners is definitely not working as they like to believe........With crazy counters that can be as high as 30% over market it's a wonder how homeowners are being helped at all in Short Sales. My understanding from some (too) is that Fanni and Freddi may be looking at prices in the next 90 days as their benchmark for the ridiculous counters and that may be the reason they are demanding a 90 day marketing time so that they can decrease the amount of double, sometimes triple work that needs to be done when we can't get these homes appraised at FAnnie/Freddi'e demands. In our market, REO's are taking twice as long to sell and we've seen them coming back on the market for non performance from buyer's side (I think appraisals). I truly believe this has everything to do with the crystal ball outlook by these investors. With all that's happened during the Real Estate downtimes, how can these institutions insist on driving up prices and creating the start of the same thing that took us down the last several years? I'm completely confused.
My contribution is to suggest go to the site for Freddie Mac and Fannie Mae for the "Does Freddie Mac Own Your Mortgage". If it is a Freddie or Fannie loan, call the appropriate advocate and complaign. If it is a SunTrust portfolio, then you can only protest up the food chain.
MERS is a good way to find the Investor as well.....can always write in to request the info.
That's simply insane thinking on Sun Trust's part. If a home sat on the market in Sacramento for 90 days before we were to accept an offer, there would be no offers. Everybody would think it was stigmatized or there was something seriously wrong with it.