California Association of Realtos (C.A.R) has released a Lender Satisfaction Survey indicating that its members’ opinions on Short Sales are vast improving.
The report showed 64% of California Realtors find the completion of Short Sales difficult which is an improvement from 77% in Aug. 2011.
The most noticeable improvement is the decline in Realtors who sees Short Sales as “extremely difficult.” In the 2012 survey, only 34 % find the process to be extremely difficult compared to 56 % in 2011.
Higher overall satisfaction towards the Short Sale lenders, 28% in 2012 compared to 16% in 2011.
A major stumbling block that the agents experienced is the lender’s slow response time to Short Sale package and approval. 67 % of the agents noting it as a major issue.
Another significant obstacle noted by the agents are poor communication and repeated request for document with the lender with 55% of the Realtors saying it caused major delays.
Fannie Mae and Freddie Mac have recently announced the streaming lining of their process to improve the Short Sale process which includes allowing the servicer to approve the Short Sale on their behalf without asking for approve, increasing the payout to second lien holders to $6000, military personnel required to relocate is unconditionally approved, among others.
This type of efforts by the government agencies and major lenders such as Bank of America will great improve the success rate of Short Sales and facility aiding people who are facing financial hardships.
We are based out of Texas and we are also seeing the same trend inTexas. More and more homeowners and agents are seeing Short Sales as the ultimate method to prevent Foreclosure. Short Sales are no longer being perceived as insurmountable. The success rate has been steadily improving every year. Our firm, Oyezz Real Estate, has a successful completion rate of 87% and we handle approximately 100 Short Sales a year. Short Sale is our specialty and with all the recent changes by the lenders we continue to improve our success rate. The industry standard for the completion of Short Sales is approximately 22%. This is due to the fact that the majority of the agents do not specialize in ShortSale. They do not have the Short Sale process stream lined nor the vast amount of experience that we have with Short Sales.