Why do they call it a ‘short-sale’? You could actually have a baby in less time than it takes to work through the short sale process in many cases. And while lenders are promising to expedite the process and reduce the lead time, the fact remains that the problem is growing and as more and more short-sales are brought into the pipeline, the lead time threatens to increase rather than decrease.
Lenders are expected to try to negotiate more than 400,000 short sales this year – triple the amount they had to work with just two years ago. Do you really think that tripling their workload will result in decreased transaction time? I bet you bought that whole ‘hopey-changey’ thing too, didn’t you?
ServiceLink, the national lender platform for origination, loss mitigation and default servicing for Fidelity National Finance, recently reported that its improved loss mitigation business model has shown dramatic decreases in the amount of approval and closing timelines for short sales. ServiceLink now boasts that a streamlined short sale will take less than 74 days. A usual short sale can take over five months. (source – Housingwire)
Some recent stats as released by the Virgina Association of Realtors… (thanks to Lenn Harley)
The Quickest: GMAC with an averge of 6 months to approve.
The next Fastest: CitiMorrgage with an average of 7.5 months to approve.
The next-next Fastest: Wells Fargo with an average of 8 months to approve.
LAST PLACE (SLOWEST) goes to Countywide (Bank of America) with an averge of 13 months to approve.
NAR President Vicki Cox-Golder recently held a meeting with B of A exec’s wherein they committed to getting transaction time down from 117 days to 57 days. From the looks of it, 117 days would be a worthwhile target from the current average of 390 days.
Short sale indeed.