Lenders Holding Out On Short Sales

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Submitted by farbet on May 7, 2008 - 5:45pm

Lenders Holding Out On Short SalesSearch

2008-05-07 — dailybusinessreview.com

“Banks are frozen like a deer in the headlights,” said Richard Green, a real estate lawyer and broker with Weichert Realtors–Green & Associates in Fort Lauderdale. “They are inundated with cases and take weeks and months to make a decision. Often, buyers get disgusted and withdraw their offer added):

Two subsequent offers for $750,000 last year and $650,000 four months ago were rejected because the lender wanted close to $700,000 for the property, Fernandez said. GMAC took the property back in March with Pospieszalski owing $989,608 in principal, interest and other fees.

Today, GMAC is marketing the three-bedroom home on Cellini Street for $609,900 — more than $250,000 less than the original short sale offer.

“What is wrong with these people?” Fernandez asked. “Are they waiting for the federal government to bail them out? Why aren’t they doing short sales?”

A-la the Dodd $300B FHA bill, they probably are. "Forcing" the lenders to take a 10% haircut, with the government backing the rest, is a much sweeter deal than directly facing the realities of the market.

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"A-la the Dodd $300B FHA
Submitted by SD Realtor on May 7, 2008 - 9:23pm.

"A-la the Dodd $300B FHA bill, they probably are. "Forcing" the lenders to take a 10% haircut, with the government backing the rest, is a much sweeter deal than directly facing the realities of the market."

A very important point... I have been really wondering about that as well. I have another short sale that I submitted for a client several weeks ago. The home has been on the market a long time and there is absolutely no reason why this should not be accepted. The lender is REALLY REALLY dragging thier feet and my buyer is about to walk. It is INCREDIBLY frustrating...

SD Realtor