In the world of real estate today many of us are hearing terms we have not heard before and even seasoned agents have not heard them in years. Loan Modification, short sale, foreclosure and cash for keys are a few of these terms. Today we will be discussing the loan modification and short sales.
Many of the properties you will find in Central Oregon are bank owned homes or short sales. Short sales up until recently were not often closing. The house would end up in foreclosure before we could get bank approval of the contract. The frustration was endless, sellers would think they had a offer, buyers would get tired of waiting and buy a bank owned home and the real estate brokers would be spinning their wheels trying to keep everything together while the bank passed documents from desk to desk – department to department and never returning a call.
Today a short sale is not nearly as frustrating as it was once before. Today the average short sale is getting bank approval in 45 to 60 days, this may sound like a long time but in the past it could have been 5 to 6 months and sometimes longer.
One of the reasons short sales are moving better is that banks are better prepared for them. Many banks have set up departments for the short sale or hired a third party to put everything together for them. Agents have gotten the education needed to understand the short sale process and both buyers and sellers are working hard to gain the education to know what to expect.
Many of the banks that were taken over during the fall of the real estate market were purchased by other banks. These banks paid pennies on the dollar for loans and then came the notorious bail out money – it is rumored and many believe it is true that banks are working short sales and foreclosures because the bottom line to them is better than completing a loan modification
If you did not click the link above you really need to – because I have simply one question – if this is the case with this particular bank – is this the reason why just over 1% of the home owners requesting a modification have actually received a modification? Sound in folks, would love to hear what you are seeing out there – what is your bank offering you – are you succeeding at a modification?