Which Lenders Process Short Sales The Fastest?
There is a lot of misinformation floating around about short sales. We recently met with a seller who had a “friend” with her to give her “advice.” Well, the friend had plenty of opinions and advice but most of it was flat out wrong!
Unfortunately, even though we are the professionals who work with short sales on a daily basis and who eat, drink, play and sleep real estate day in and day out, she listened to her “trusted friend” who knows nothing about real estate. What a shame.
At any rate, I don’t want to go into all the inaccurate info dispensed by the friend other than to address one thing…
Not all short sales take a super long time to get approved and closed.
In fact, some are processed relatively quickly and with little hassle. (Now, don’t misunderstand… there are some that take several months – even up to 6 months – but those are becoming more the exception than the rule.) If you are in the middle of a short sale, you should be prepared to exercise patience and to just go along with all the seemingly ridiculous requests the lender makes to send them documents that you’ve already sent 3 times before, etc. Be patient, work with a professional real estate consultant who has experience and knows what they are doing and stick to the game plan.
Now, just which lenders do process short sales the fastest?
Fortunately, not all lenders/servicers are the same when it comes to dealing with short sales. RealtyTrac recently compiled a list of data showing which ones tend to move through the process quicker and for less.
Their data shows that Fannie Mae, Freddie Mac and FHA loans had the shortest timelines. Ally Financial was second and PNC Financial Group came in third. Wells Fargo (with whom we’ve had pretty good experiences) came in 4th followed by New York Mellon, Bank of America (in our experience, Bank of America is very inconsistent… some are processed fast while others seem to drag on forever), and Sun Trust.
Recently, Fannie Mae and Freddie Mac came out with new guidelines, effective June of 2012, requiring servicers to respond within 30 days of receiving a short sale offer or a borrower application. We are hopeful that this guideline will be strictly adhered to by all. Bank of America recently announce that they will provide a decision on a short sale offer within 20 days — I remain skeptical about this, given our past experiences with Bank of America. Let’s hope they are able to deliver on this goal.
Contact us for more information about short sales or any real estate related questions. If you have a legal question, we will arrange a consultation for you with one of the areas finest real estate attorney.