Homecomings Foreclosure
In a short sale (mortgage), why does it take 60 days or more for the bank to make a decision?
We have been waiting for over 30 days for an answer on a short sale property offer we made on a house that the current owner will abandon as part of filing Chapter 11bankrutpcy. The bank (Homecomings Financial) has been totally unresponsive whenever our Realtor makes contact with them–their consistent reply is: “we don’t know when it will be approved, it can take 30-60 days and sometimes 90″.
The basic question is: what are they doing? The only explanation is that our file is sitting somewhere on someone’s desk waiting to be worked. It baffles me that in light of the escalation of defaults and foreclosures in the market that lenders are caught unprepared to quickly evaluate short sale offers that, relative to entering foreclosure or repossession and resale (REO) of the home, could save them tens if not hundreds of thousands of dollars. We are about to give up as we won’t be able to sell our home quickly enough before the fall slow down if we don’t get a decision soon.
You are wanting to buy this house. The bank will be required to settle for less that the full payoff amount. The employees of the bank that you and your agent are dealing with have to go though the steps required or they can be fired or held responsible for the failure to safeguard the investors money.
There are several steps. Among others are:
The bank needs to assure themselves and the underlying investors that the seller has no assets that could be used to offset the shortfall in the mortgage payoff.
The bank needs to assure themselves and the underlying investors that the house is being sold for the most they can reasonably expect.
The bank needs to assure themselves and the underlying investors that there was no fraud involved anywhere in this transaction and none in the transaction where the current seller bought the house.
There are several other steps. the employees have no financial stake in getting this done quickly. Their jobs depend on them getting this done correctly. You have no leverage to get them to speed up, and they could even decide that the best thing for the bank is to foreclose.
I know that it makes no sense to you or me but it does make sense to the bank employees.
Raleigh Short Sale Homecoming Foreclosure Loan
