Are Short Sales Changing ???

We process lots of short sales here in Central Ohio. Recently in about the past 4 months we have seen the landscape of short sales changing quite a bit. These things have happened in the past but not in such high frequency. It seems the banks and investors are becoming anti short sale. Please let me know if any of you short sale experts out there are experiencing these same issues.

FHA Short Sales - Buyer is denied immediately because house was vacated. No variance sent to FHA. Bank is offering seller $3,000 to do a deed-in-lieu instead.

FHA Short Sale BoA - After ATP was issued the bank refuses to review file. We escalated through FHA and FHA couldn't get the bank to respond to the offer either. We escalated through BoA and that didn't help. ATP finally expired. Lost buyer after 4 months.

BoA Co-op - Had an approved co-op with BoA. Had an acceptable offer. BoA would not send to Fannie Mae  for final approval. They passed the file from escalation manager to escalation manager 4 times until the property foreclosed. We escalated through HomePath and BoA. No results. The last escalation manager named Maria Rubio thought Fannie Mae was spelled " Fanny May" This file sat for 6 months.

High BPO Values - Several listings are sitting with no offers because of high BPO's. We have disputed all of these but can not get a fair market price from the investor. We spoke to people who did the BPO's and their values were not as high as the investors.

3rd Party Authorizations Lost - This is happening on several files. We send the 3rd Party form and talk to the bank. The next week the 3rd Party is gone. We resend it gets lost again. It seems they are losing them intentionally.

Other Paperwork Lost - We send a full package and then we verify that everything is received. Then suddenly what we verify is there turns up missing. This is happening on several files.

In general it seems the banks are making it more difficult and intentionally trying to mess up or delay the short sale so the property can go to foreclosure. Am I the only one feeling this way? Please share your thoughts?

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Permalink Reply by Mike Aubele on August 26, 2013 at 4:39am

Ron, when you say you're a "lender," in what terms are you a lender?  Do you own one of the big banks?  Are you an employee, loss mitigator?  Just curious.

Permalink Reply by Jeff Payne on August 26, 2013 at 5:26am

Ron is this you?

Ron Scribner

Consumer Credit Manager at Tri Counties Bank

Permalink Reply by Jeff Payne on August 26, 2013 at 5:24am

@Ron and @Mary Ellen, lets keep this civil.  Obviously the real estate agents for the most part see this very differently than Ron's camp.  My opinion... Over the years the banks have kept the "real" short sale process very much in the dark and have had an adversarial approach to real estate agents, in return the RE agents fight back and become very bitter due to being left in the dark and feeling like we are the problem and not the solution.

Working together would be so much better.

BTW, I am seeing the same changes that everyone else here is experiencing.  
@Ron Scribner you seem like a guy who cares about what he does and cares about helping homeowners and educating agents but I have to say you are one in a million because we get little or no help from other lenders

Permalink Reply by Mike Aubele on August 26, 2013 at 5:37am

If Ron is on the inside, I think he would be beneficial to all.  That is if a successful short sale is a benefit to his employers.

Permalink Reply by Jeff Payne on August 26, 2013 at 5:40am

agreed, we need Ron to give us the real inside of the short sales.

Permalink Reply by Jeff Payne on August 26, 2013 at 5:36am

I don't want you to be out as you are a great contributor here.    I agree with most all of what you are saying about the changes in short sales.  I still believe, as I always have, that the short sale guidelines at these banks/investors/servicers make little sense and that they are designed to daze and confuse and discourage short sales.  Their actions speak way louder than any of their words.

Permalink Reply by Jeff Payne on August 26, 2013 at 5:41am

Did she really just remove her entire profile because I asked her to be civil?

Permalink Reply by Mike Aubele on August 26, 2013 at 6:13am

All good from my end.  We can all learn a lot and have fun at the same time.

Permalink Reply by Wendy Perez on August 27, 2013 at 3:39am

Precisely why I decided to give these up two months ago.  I have one left to close and then I am done.  I've gone back to working with buyers.  I managed to close 112 short sales in the last few years and am grateful for the experience, but it's time to move and start making a living again.

Permalink Reply by Scott Marvin on August 27, 2013 at 2:23pm

Thanks everyone for the input. It helps to know that other people are seeing the same recent changes in short sales that I am seeing. I can now look at my business plans for the future with better confidence and I hope these posts have help other agents on the fence about continuing their short sale business.

As for Ron I appreciate your feedback from the banking point of view. I wish all the other lenders worked like your company. I would probably continue to work short sales. Unfortunately all the other banks are becoming very anti-short sale.

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