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11 Aug 09 By Tracey Velt \| Category : Business 18 Comments \| Speak Up Too! Short Sales Banks: The Good, The Bad and the Ugly Your Feedback Revealed Frustration is high in the short-sales world. Lost paperwork, no communication, extremely long transaction times�talk to most sales associates, and you�ll get a glimpse of this frustration. In fact, says Bill Wootan, with Team One at Century 21 H T Brown in Waldorf, Md., one bank so far has, �let four buyers walk! The first time, I got an answer in seven months, and when I told them the buyer walked three months ago, the bank wanted to know why it hadn�t been notified. I did notify the bank�I sent a fax with confirmation to the private number they gave me.� According to Via Surmelis, CRB, CRS, GRI, of AV West Real Estate in Idaho, �Most of the banks are dragging their feet. I suspect the insurance companies are paying the banks the difference between what the offers are and what is owed. Banks are holding out for higher offers while [still] accepting offers from buyers. They pull the rug out at the last minute if they get a better offer even a few days before closing.� But, says Joe Ohayon of Wells Fargo Home Mortgage, the banks are trying. �I think if we [the bank] intervenes as early in the process as possible, [the faster the short sale process will go]," says Ohayon, vice president, community and client relations. �The more we do in advance of an offer coming in, the faster we get the transactions done. That includes negotiating with junior lien holders, so we know we have subordinate liens out there.� LORE/REALTrends asked you to tell us your best experiences. By all accounts, the smaller, local lending institutions were the best communicators. �Small, independent banks and credit unions are by far the most responsive,� says Debra Drummond, CRS, ABR, associate broker of RE/MAX on the Trail in Ann Arbor, Mich. Of course, our list is by no means comprehensive or even scientific, but it does give you a peek at how lenders and servicing companies are stacking up. The Best (in alpha order) AmTrust Banco Popular Bay National Bank, Maryland CitiMortgage Deutsche Bank Gold Savings, Idaho HomEq Servicing IndyMac Ocwen Financial Corp. Saxon Mortgage Servicers Select Portfolio Servicing Mixed Bag (we got both good and bad feedback about the following) American Servicing Company Chase Bank Countrywide/Bank of America GMAC Owen Financial Specialized Loan Servicing WaMu Wells Fargo According to the feedback we�ve gotten, Wells Fargo seems to be on the path to better communication and shorter servicing times. �I�m working with Ed Nornes of Wells Fargo Home Mortgage. He tells it like it is, and he responds almost immediately. He�s guided me every step of the way,� says Debbie Goldberg with Coldwell Banker Residential Brokerage in Conn. Lorrie Hunter of RE/MAX Gateway in Virg. agrees. �Wells Fargo has become light years better than they were and seems to have systematized their process well. I got two [short sales] done in less than 34 days (one under 30).� We�d still like to know your experiences. What are your biggest challenges/questions and what information can LORE/REALTrends provide to help you get answers? We try hard to meet your needs with our posts. If this one benefited you, please share your experience via Facebook, Twitter, Delicious, StumbleUpon, or any of the other sharing options below. Comments [18] September 1, 2009 5:09pm MST by Matt Stewart That List Is A Crock! I don't know who put that list together but the info provided is essentially worthless... I have successfully closed over 100 short sale transactions in the past year and AmTrust, CITI, B of A and Ocwen have provided some of the worst experiences to date. Some of the best that were mentioned above are Wells, ASC, SPS, SLS, Chase, GMAC, HomEq and IndyMac. It's tough because sometimes you will just have a bad rep or a bad investor or a bad MI company, but each bank should be evaluated after several transactions, not just one. ... Read all 18 comments ... September 1, 2009 5:02pm MST by Matt Stewart That List Is A Crock! I don't know who put that list together but the info provided is essentially worthless... I have successfully closed over 100 short sale transactions in the past year and AmTrust, CITI, B of A and Ocwen have provided some of the worst experiences to date. Some of the best that were mentioned above are Wells, ASC, SPS, SLS, Chase, GMAC, HomEq and IndyMac. It's tough because sometimes you will just have a bad rep or a bad investor or a bad MI company, but each bank should be evaluated after several transactions, not just one. August 31, 2009 7:18pm MST by Dawn Battle - RE/MAX Gateway Saxon Mortgage - Big Cheers I've worked with a number of banks on successful short sales. Saxon was remarkable. The negotiator that I worked with was efficient and very reliable. There are a few good guys out there. The negotiator even returned our phone calls. August 21, 2009 7:29am MST by Sharon Douglas, PA Another WAMU Hassel I also have a 1st and 2nd Mortgage sale through WAMU. The 1st is working great with us, the 2nd out of SC is stonewalling. They won't answer calls, voicemail full, don't reply to fax's or letters. What a same these two can't work together as it's the same bank, again the 2nd will end up with nothing. Not to smart. August 19, 2009 7:54am MST by Maria DaPonte WAMU Home Equity Hassel... I have a short sale that I have been trying to get approved by the second lien holder for months now. The first mortgage who is also WAMU has accepted the offer however, the second will not accept $3,000 payoff from the first. I have tried unsuccessfully to get the second to approve this short sale but they refuse. Better yet, they went ahead and gave the file to an outside agency to negotiate the amount on their behalf. Now I am trying to negotiate this sale with Tiburon Financial and we still cannot come to an acceptance. Mind you, the first has approved the sale. My seller has now agreed to sign a promissory note in order to get this deal to close but WAMU Home Equity is very sneaky and wants my client to sign a document waiver her ferderal, state and local rights to file foreclosure if they cannot come to a settlement agreement after closing. She will be responsible for the terms and conditions on the promissory not...yet I do not have a copy of the promissory note and the terms of the payments. Go figure! Looks like the first will end up foreclosing on this property and the second will be SOL... aka, NOTHING!!! August 18, 2009 12:11pm MST by Camille Short Sale/WAMU Hassle I have been working with the sellers since April. I immediately let WAMU know about plans for short and asked for copy of key since they had changed locks. It took them 3 weeks to get copy of key to me. I should have known it would only get worst from then on. We received a really great offer (full asking price) 1 months into the listing and immediately contacted them again to receive an updated fax of where to send packet. Same day faxed over all 50 pages. Waited a week and began calling for updates. All the time the answer was the same. You faxed to right number, no status yet, be patient, going through a lot of requests. That lasted for about 1 month. Then they inform me that the fax they had given me had not been a good fax # even before I sent the packet. Gave me a new #. Faxed paperwork again. 2 weeks of this for then the same thing happend. Oh!!! there is a better fax that one is not a good fax (even though all this time I have been told again it was correct #). Third fax finally showe up as received 3 days later. Negotiator assigned early Jul. Called every 2 or 3 days for 2 weeks for status. nothing. 2 weeks later they tell me that they sent a letter to the owners at property address requesting utilities statements and signed copies of tax returns. I find out they had sent this letter ou 2 days after receiving paperwork but did not bother to call me. Never mind all paperwork sent stated property has been vacant for over 1 year and owners out of state trying to secure employment and the fact that I also included note on original paperwork as to fact house is vacant (with copy or rent checks and utilities for current residence.) According to supervisor a later explaining it again would suffice. Week later they tell me now that it does not suffice and they needed those documents. Track owners down get them to fax me info they want. Fax it to them. Keep checking every day until finaly early Aug they tell me they have documents. I have also constantly asked if there is a sale date assigned to property. Have been told no until last week they tell me sale date if for this Friday. They also tell me that it has been in the books for quite some time. Checked with them today and no update; but also that they will request sale date to be postponed since file under review (they supposedly did this last week as well) but no promises. Buyer is getting ansy. I have another co-worker that is having the same problem with WAMU. They constantly give her # no longer good or that are working. Constant mis-information. Basically the right hand does not know what the left one is doing. They also refuse to put you in contact with a supervisor or give you email or # for assigned negotiator. They also tell me they will not call me or send me communication, it can only be sent to my owners at the vacant property. My sellers had the same problems with them when they attempted load modification. Any suggestions will be appreciated August 15, 2009 9:18am MST by Anna Edwards Great success with short sale process Chase Bank is to be recommended for the quick and painless turnaround for a tranaction that I recently had in neighboring Prince William County in upscaled Piedmont subdivision. They were so well organized and the negotiator was excellent. We closed in 30 days August 14, 2009 11:56am MST by Ken Bennett Add Another Bank To The Good List Another bank that has shown impressive response time on working short sales in the Central Florida area is ING Direct. We were able to secure their approval on a short sale within two weeks... they were very cooperative. August 13, 2009 9:47am MST by Dr. A. Montazer I Don't Touch Short Sales Foreclosures I stay away from short sales and foreclosed properties, unless the clients see one that is in perfect shape. Then I explain that there is no guarantee that they may settle in 3, 6, 9 or even a year in some cases! I do not want "banks" waste my client's valuable time! Banks are doing all of us in this country a big disservice. As soon as they take over a property, banks disconnect utilities, and yes Home Hazard Insurance! Any house that is foreclosed and stays in the market one complete year, it develops water leaks as a result of freeze-thaw cycle and becomes infested with mold and flooded basements. I have seen very few foreclosed homes that pipes are flushed and winterized. So the next worst thing economically in this country after of course the commercial mortgage problem will be the mess of foreclosed homes that are sitting in the markets without fast processing and transaction by the banks. They are economic geniuses! You would think they sell foreclosed home to the first bidder and cut their costs! No they are not that smart after all! August 12, 2009 8:31am MST by Julie Park CitiBank - GOOD???? I've had 2 deals with Citi and they have been the worst transactions in my career!!! On the first, the buyers WALKED away after waiting for 5 months for a response on their FULL PRICE offer! Citi just made excuse after excuse. Now to the 2nd one...GREAT offer, STILL WAITING!! Again, we are into our 5th month!!! Another buyer of mine about to WALK! August 12, 2009 8:27am MST by Julie Park CitiBank - GOOD???? I've had 2 deals with Citi and they have been the worst transactions in my career!!! On the first, the buyers WALKED away after waiting for 5 months for a response on their FULL PRICE offer! Citi just made excuse after excuse. Now to the 2nd one...GREAT offer, STILL WAITING!! Again, we are into our 5th month!!! Another buyer of mine about to WALK! August 12, 2009 8:25am MST by Sherry Davidson Does anyone in banking know how to run a business? I am the broker/owner of Davidson Realty, Inc. in St. Augustine, FL. Forty-three percent of our pending sales are short sales. Bank of America/Countrywide is the worst. It would seem like with so much to lose, the banks would hire staff and train some people to handle these sales. With the high unemployment, it should not be too difficult to find qualified workers and if the workers had any skills to receive a document and confirm that they got it, it would be a drastic improvement to what we are dealing with now. We sent four short sale packages with great offers to Bank of America. We have checked constantly that they receive them. We are told it will take time to be uploaded into their system. After over 2 weeks, we have still not been successful in getting our packages uploaded. There is absolutely no excuse for what the lenders are doing. Doesn't anyone in banking know how to run a business? August 11, 2009 3:05pm MST by Gerri Ross Realtor I met with a homeowner yesterday who has been trying for two months, with fifty/sixty different people to talk to someone about her loss of job and inability to maintain her mortgage at Bank of America and she has had no luck. This is just a small part of my personal frustration trying to get homes for good qualified buyers and the banks/mortgage companies will not cooperate. I am ready to march on Congress. August 11, 2009 1:33pm MST by Patty Davis short sales Bank of America/Countrywide has to be the worst. I say this as I am sitting on the telephone for the 24th time in 2 months trying to reach a negotiator. I have had two excellent offers where there were only going to lose about $15k on the loans, and they still do not respond. It is the poorest of all of them, in my opinion. August 11, 2009 12:32pm MST by Keisha Mathews, REALTOR SHORT SALE HI'S & WOES I too, like most these days, have become a short sale specialist. Unfortunately the banks are slow in catching on. I think the list that you have compiled of good bnaks to work with and the "mixed bag" is extremely accurate and on point. Wells Fargo has a few people in the company that have the authority to speed things up but the remaining employees are still reading from old scripts and stalling the program. Especially as it pertains to juior liens, OMGsh... that will be the death of us for sure. The change needs to happen from the "gatekeeper" to the exectutive, vs the other way around. Why does it take ten phone calls to the same department before you receive confirmation that your documents have been received? Technology is too readily available for some of the hoops that these banks are putting us through. Change will come when the charge is led to create a unified system of processing short sales, both within the banking industry as well as within the local REALTOR community. That's another issue... August 11, 2009 9:47am MST by Philip Do us all a favor Share this with your clients! Every time we reinforce their information on this subject we will further reduce their stress levels and find a successful outcome for those brave hearts willing to take this route toward home ownership. Additionally, acting as a good source of information while setting a level of expectations will help to add value to our profession. August 11, 2009 7:27am MST by joe hollis Short Sale nightmares I have been trying to get short sales thru the procees for over a year with no success. It seems the banks have other reasons to not allow these to be worked out. I had one property with three cash offers to close in 30 days and none were responded to by the bank, until after 90 days each and all buyers walked. Another said they were stopping an auction of the property for us to work out an offer and 2 days later I got a call from someone who bought the property at the auction. It seems there is no real direction for any of the banks I have dealt with so far. One bank I had to sit on the phone on hold for over 2 hours to get an answer to my phone call. Then got transferred to someone else and still couldn't get an answer. Its a real nightmare and I think banks are doing themselves and the people a disservice, but who is bailing them out. We are rewarding them for their lack of good business practices. August 11, 2009 7:15am MST by Beverly Jackson Short Sale Hassels Right now I am working a deal involving a condo in Perdido Key, Fl. The bank involved is Regions and the Mitigator seems to be taking the deal personally. She won't communicate and is being uncooperative about the entire deal. We are at this point trying to communicate with her supervisor. We wrote a strong, clean offer and about three weeks into the closing time frame she calls and says that she does not have the authorization letter. The buyers have lost their lock in rate and are really anxious about the whole deal now. Even though you explain it to your buyers it seems that no one really understands all the hassels that come with short sales these days. It is definitely hard work and us REALTORS are without a doubt earning our keep in the short sale world. Speak up! We're Listening... Title* * Your Name Your E-mail* (will NOT post ) (SUBMIT NO LINKS)

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