Too much mudslinging for me to get more involved than this and you are both correct to some degree. Yes there is some short sale fraud but I wouldnt call it rampant. CAR ideals are exactly that ideals and do not work in the real world. Until a lender will pre-approve a short sale at a given minimum price before the property hits the market (we were promised this in HAFA and I knew it would never come to be) it is not possible to get the best price for taxpayers. The best buyers wont bid on the property because of the unknown final price or waiting period. The seller should be cautious in accepting what may be an over market price because once they submit it to the lender they set unreasonable expectations that can further damage them, particularly in the face of a falling market. Having completed nearly 100 short sale listings I can say without any reservations that the short sale mess is entirely at the feet of the lenders/servicers/investors. If they would give us a minimum price/terms and the ability to close escrow within 30 to 45 days upon a buyer making an offer that would set the foundation to change everything. Without that….games on!
