For a financially struggling homeowner, the decision to pursue a short sale does not come easily. Homeowners who make that choice generally do so after months of searching and pleading for an alternative that would have kept them in the home.
Even when it goes smoothly, the short-sale process is painful for sellers. When it’s bumpy and slow, the pain is far worse. Far too many short sales have been plagued by false starts, confusion, delays
Short-sellers’ many encounters with insult upon injury stem from a combination of problems, including sellers’ lack of experience with the process and lenders’ initial reluctance to adopt on a mass scale what they had long considered an obscure means of resolving bad mortgage debts.
Big mortgage lenders such as Bank of America and Wells Fargo are still smoothing out the wrinkles in their respective solutions to making short sales faster and more reliable. But they are now taking short sales very seriously and have made many improvements, one bank representative said.
Just as the average homeowner never imagined losing a home to financial hardship, the average mortgage lender never dreamed the bank would have to set up an assembly line to churn out short-sale approvals.
Many banks after an overload of complaints
Bank of America has implemented an automated system – the first of its kind – for tracking the progress of short sales and has reduced the average number of days it takes for a
The bank approved 18,000 short-sale applications in April, says a Bank representative.
Unfortunately, it received more than 50,000 short-sale applications that month.
“Our system was never designed to handle this kind of volume,” said Rick Sharga, senior vice president
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