I had a recent conversation with a negotiator that was servicing a file with Fannie Mae and told me the ways you can get an automatic short sale approval from Fannie Mae. I should correct myself and say “approved of” but only the value and the offer are needed if you have one of these 4 circumstances. In each instance, the borrower can remain current if they choose and still qualify. (more…)
Seterus Short Sale Process
Seterus Short Sales are thankfully much more rare than many other “servicers” or banks. Seterus is one of those “banks” that is more like a credit union or small group that doesn’t think Short Sales deserve the attention of their staff or processes. After all, Seterus doesn’t make money on short sales, so why bother. Most often you’ll have to escalate or find work around when dealing with them . Allow up to 4 months from the initial offer from a buyer to an approval letter. You can (we have) close with them, but don’t expect it to be a smooth ride.
Bank of America Short Sale Process Update in 2013
Over the years, the Bank of America Short Sale process has gone through many changes. From being one of the worst in the industry to being one of the better ones. They’ve added equator, added twitter support and now they’ve added Dignified Transition Solutions as an outsourcer. In addition, they are now also trying to interfere with our listing process, telling us to list properties as ACTIVE that are clearly under contract. Too good to be true would be what could be said about Bank of America Short Sales. Often they take around 90 days from start to approval letter if everything is followed, sometimes it is much faster and other times it’s not. The only thing that can be said about Bank of America Short Sale processes is that they are only a servicer most of the time, not the actual investor.
Dignified Transition Solutions Short Sale Process
Dignified Transition Solutions Short Sale Process is a new one relative to others. In our experience they are a third party that Bank of America has outsourced some of their short sale and other loss mitigation services to. For the most part, the staff at DTS is generally more amiable and ready to attempt to help. However, a round of phone calls in a day will reveal that their staff lacks the experience and often will add days if not weeks to the short sale process. Keep in mind though, that these delays won’t be due to negotiations, but just inexperience which makes it somewhat frustrating.
In our experience Dignified Transition Solutions works with a majority of FHA Short Sales. This process should be easier, but unfortunately, as mentioned above, their inexperience and overall lack of urgency can really wear out a client. They sure are friendly though.
Expect at least 4 months from start to approval letter if you have a DTS short sale.
Wells Fargo Short Sale Process Update
We’ve gone and updated many of our “takes” on the banks and one of the first ones we want to release is the Wells Fargo Short Sale Process Update. Overall, Wells Fargo hasn’t changed a whole lot in the past 5 years. They do use equator now for most of their files. (Equator is a software that a few banks use for short sale processing). Wells Fargo can be counted on to take 60 to 90 days to get an approval letter. We have not lost a short sale to foreclosure with Wells Fargo in the past 3 years or so. This is one of the reasons we like the Wells Fargo Short Sale Process, as they are a bit more forgiving than some of the other lenders.
Bank Of America Short Sale Process Update
We’ve talked a lot about the Bank of America Short Sale process over the years, but they continue to be slowing improving their processes, almost to the point of being the preferred lender to do a short sale with. Unfortunately, that distinction won’t help them a ton but will help home owners get over their fear of the short sale process. They recently made a few changes to their process.
One of the biggest problems with short sales is that the home buyer tends to get antsy and decides to buy something different. This usually causes the short sale “processor” to have to start over. (more…)